Economy

FG Puts up N7bn Presidential Jets for Sale

Published

8 years ago

October 5, 2016

FG Puts up N7bn Presidential Jets for Sale

The Presidency on Tuesday confirmed that newspaper advertisements for the sale of two presidential aircraft, a Falcon 7X executive jet and Hawker 4000, were duly authorised by President Muhammadu Buhari.

The Senior Special Assistant to the President on Media and Publicity, Garba Shehu, confirmed this in a statement made available to journalists.

Shehu said the decision to sell the jets was in line with the directive of the President that aircraft in the Presidential Air Fleet should be reduced to cut down on waste.

He explained that the reduction would not end with the sale of the two jets.

The presidential spokesman said some aircraft in the fleet would also soon be handed over to the Nigeria Air Force for its operations.

Shehu said, “When he campaigned to be President, the then APC candidate Muhammadu Buhari, if you recall, promised to look at the Presidential Air Fleet with a view to cutting down on waste.

“His directive to a government committee on this assignment is that he likes to see a compact and reliable aircraft for the safe airlift of the President, the Vice-President and other government officials that go on special missions.

“This exercise is by no means complete. I am sure the Commander of the Presidential Air Fleet will any time from now call you to a ceremony at which he will hand over some other aircraft to the Air Force for their operations.”

According to the Presidency, PAF currently has 10 aircraft. These are: Boeing Business Jet (Boeing 737-800 or AirForce One), one Gulfstream 550, one Gulfstream V (Gulfstream 500), two Falcons 7X, one Hawker Sidley 4000, two AgustaWestland AW 139 helicopters and two AgustaWestland AW 101 helicopters.

Each of the two Falcon 7X jets were purchased in 2010 by the Federal Government for $51.1m, while the Gulfstream 550 costs $53.3m, a former Minister of Information, the late Prof. Dora Akunyili, had said.

The price of other aircraft in the fleet could not be ascertained. But according to Wikipedia, price.wescrawler.com and airline executives, the factory price of other aircraft in the fleet are: Boeing Business Jet, $59m; HS 4000, $22.9m; AgustaWestland 139, $12m; and AgusatWestland 101, $21m.

This brings a combined estimated value of Nigeria’s PAF to $347.4m (N106.13bn).

Quoting a document from the Presidency had reported recently that despite the biting economic recession in the country, the Federal Government spent N5bn on the 10-aicraft PAF in the last 15 months.

According to the document, the Presidency put the amount so far released for the fleet since the inception of the current administration in May 2015 at N5bn.

The breakdown of the sum showed that N2.3bn was released for PAF by the Office of the Accountant-General of the Federation between May and November 2015.

That figure included releases for personnel costs, overheads and capital expenditures; out of the N5.19bn appropriated for PAF in the 2015 budget.

Of the sum, the Presidency said N99.715m was spent on aircraft maintenance, spares and subscription services.

The sum of N98.5m was also spent on operations; N165.373m on training and N85.5m on personnel medicals and overheads.

During the period, the document claimed that PAF spent N1.350bn to settle outstanding liabilities carried over from 2014 while N500m was refunded to the NSA for financial support rendered for the maintenance of the Fleet prior to release of funds.

According to the newspaper advertisement announcing the sale of the two aircraft, the Falcon 7X with registration number 5N-FGU and serial number 090 is currently located in Abuja.

It indicated that the aircraft entered into service in 2011 and had completed 2776:47 hours and 2363 cycles.

The advertisement read in part, “Take off at sea level — 5, 555 ft; landing distance — 2,070ft; certified ceiling — 51, 000ft; cruise speed — 488kts; Easy II Avionics 1A Complainct/Satcom. Interior: Passenger capacity — 16, crew seating capacity — 3; forward and Aft lavatories; four large screen monitors; six small adjustable seat mounted monitors and fully automated media centre.”

The second aircraft, Hawker 4000 with registration number 5N-FGX and serial number RC 066 entered into service in 2012. It has completed 1178:15 hours and 1146 cycles.

Its details were given thus: “Range — 3190NM; take off at sea level — 5,068 ft; landing distance — 2,475ft; certified ceiling — 45, 000ft; cruise speed — 482kts; Honeywell Primus Epic Avionics/Satcom. Interior: Passenger capacity — 9, crew seating capacity – 3 with detachable jump seat; Aft lavatories; two monitors; power outlet in cabin and cockpit and fully automated media centre.”

Meanwhile, aviation stakeholders have supported the Presidency’s move to sell the aircraft.

The General Secretary, Aviation Round Table, an industry pressure group, Group Captain John Ojikutu, who supported the move, said, “It is high time the Presidency reduced the number of aircraft in that fleet. We can’t be spending our scarce forex to maintain a large fleet of 10 aircraft.”

A former Assistant General Secretary, Airline Operators of Nigeria, Mr. Muhammed Tukur, also supported the move, saying the aircraft could be sold to both airline operators and private individuals who could use them for commercial purposes.

He said that this could generate more revenue and create jobs.

A former President of the Airline Operators of Nigeria, Dr. Steve Mahonwu, stated that instead of selling the aircraft, the Federal Government should hold on until it was ready to float a national carrier and should then make the planes serve the airline.

He said, “Are we not ashamed that several years after the demise of our Nigerian Airways, we still don’t have an airline we can call our own? Instead of selling these aircraft, why not hold on till when you are ready for a national carrier?

“The President promised to reduce the Presidential fleet size and that’s okay. He has also assured Nigerians that he will ensure the return of our national carrier. So instead of selling the aircraft in the Presidential fleet, you can convert some of them and use them as jets in the national carrier.”

But Capt. Dele Ore of the Aviation Round Table, a body of industry experts, told our correspondent that it would not be right to sell the aircraft without carrying out adequate studies to ascertain if truly the Presidency would not need them any longer.

According to him, the two aircraft in question would not be fit for full-scale commercial service.

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Economy

House of Reps Warns Tinubu Against Multiple Tax Burdens on Nigerians

Published

17 hours ago

October 12, 2024

Bassey Marshall

Company Income Tax (CIT) - Investors King

The House of Representatives has warned President Bola Tinubu against imposing multiple taxes, levies, and charges on Nigerians already struggling with subsidy removal and higher electricity bills.

During Thursday’s plenary session, the member representing Anambra East/Anambra West Federal Constituency, Mr. Peter Aniekwe, called for the adoption of a motion on urgent public importance.

Investors King reported that the motion was co-sponsored by the House Minority Leader, Rep. Kingsley Chinda, and four others.

In defense of the motion, Aniekwe noted that the government’s introduction of additional taxes, which he described as sometimes unnecessary, only adds an undue burden on Nigerians.

He emphasized the need for the government to strike a balance when imposing taxes that are essential for revenue generation.

Aniekwe said, “The imposition of multiple taxes, levies, and charges at various levels of government only serves to exacerbate the financial strain on citizens, particularly those in low-income brackets, many of whom are already struggling to meet basic needs such as food, healthcare, housing, and education.

“The introduction of additional and sometimes unnecessary taxes, including consumption taxes, service taxes, and levies on essential goods and services, places an undue burden on the masses, further widening the inequality gap.

“While taxation is necessary for government revenue, a balance must be struck between revenue generation and the economic well-being of citizens, particularly at a time when many families and businesses are still recovering from the economic impact of global and local challenges.

“The government’s primary responsibility is to alleviate the economic challenges faced by the masses, ensuring policies that promote economic development, social welfare, and prosperity for all citizens.”

After Aniekwe’s defense, the House of Representatives adopted the motion.

The House cautioned the Federal Government against multiple taxation and mandated the committees on Finance and FIRS to, within three weeks, conduct a thorough review of existing tax laws and policies to streamline tax collection processes and eliminate redundant or overlapping taxes.

The committee was also tasked with identifying areas of double taxation at all levels for necessary action.

Economy

Boosting Nigeria’s Digital Future: STEM Education and AI Could Add $15 Billion to Economy by 2030

Published

1 week ago

October 4, 2024

Ugwoke Ogbodo

If Nigeria can enhance its Science, Technology, Engineering, and Math (STEM) education and prepare its workforce for future opportunities in the digital space, the economy could expand by an additional $15 billion, a new report has revealed.

The report, issued by consultancy Public First on Thursday, also indicated that Nigeria reaped an estimated $1.8 billion in economic benefits from Google’s tools and services in 2023.

Presenting the report in Lagos State, the Nigeria Digital Opportunity study highlighted the financial value contributed to the nation’s economy through services such as Google Search, Ads, Google Play, YouTube, and Google Cloud.

These services have played a significant role in boosting the productivity of Nigerian businesses, content creators, and workers.

It is no secret that a large number of young Nigerians have become tech-savvy, with many venturing into the thriving world of technology and content creation on social media platforms.

According to Google, its digital skills programs and career certificates are key drivers of Nigeria’s digital transformation, with over 1.5 million young Nigerians acquiring new digital skills in 2023.

Google’s Director for West Africa, Olumide Balogun, expressed the company’s satisfaction with the positive impact that digital technology is having on Nigeria’s economy.

He emphasized that the findings highlight the importance of continued investment in digital skills and infrastructure to unlock the full potential of Nigeria’s growing digital economy.

Balogun noted that with rapid digital advancements, particularly in areas such as cloud computing, connectivity, and artificial intelligence (AI), Nigeria is well-positioned to solidify its standing as a leading digital economy in Africa.

He advised the country to strengthen its technology policies, stating that Nigeria’s economic future will largely depend on its ability to harness technology. Balogun added that Google remains committed to supporting Nigeria’s journey through strategic investments and partnerships.

The report underscored the significant role digital technology plays in Nigeria’s economy, with Balogun noting that for every $1 invested in digital technology, the country generates over $8 in economic value.

Meanwhile, Google has called on Nigerian policymakers to prioritize STEM education to maximize the economic benefits of technology.

The report also projected that AI could contribute $15 billion to Nigeria’s economy by 2030.

Balogun highlighted Google’s efforts in promoting responsible AI development, noting that in 2021, the company committed $1 billion to support Africa’s digital economy.

He added that this initiative included the 2022 landing of the Equiano fiber-optic cable in Nigeria, which is expected to boost internet penetration by seven percent by 2025, significantly enhancing internet access and reliability.

Google also recommended that Nigerian policymakers adopt cloud-first strategies and strengthen the country’s digital infrastructure to harness the full potential of AI, while emphasizing the need for improved STEM education to prepare the workforce for future opportunities.

Amy Price, Director and Head of Technology Policy at Public First, praised Nigeria as a digital leader in Africa. She emphasized that tech investment will serve as a catalyst for further growth and development across the nation.

Price further highlighted the critical role AI will play in shaping Nigeria’s future economy, with the report estimating that AI could add $15 billion to the country’s GDP by 2030. She stressed that the nation must focus on building strong digital infrastructure and investing in STEM education to prepare its workforce for the jobs of tomorrow.

Economy

Lawmakers to Deliberate on Nigerian Tax Reform Bills, Change of FIRS to NIRS

Published

1 week ago

October 4, 2024

Iyanuoluwa Martins

The National Assembly is set to begin deliberations after receiving President Bola Tinubu’s communication seeking consideration and passage of the proposed Fiscal Policy and Tax Reform Bill to align with ongoing financial reforms of the Federal Government and enhance efficiency in tax compliance.

In addition to the Senate, the House of Representatives received four bills forwarded by the President. They include the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Establishment Bill and the Joint Revenue Board Establishment Bill.

The Nigeria Revenue Service (Establishment) Bill seeks to repeal the Federal Inland Revenue Service (Establishment) Act, No. 13, 2007, and establishes the Nigeria Revenue Service, to assess, collect, and account for revenue accruable to the government of the federation.

The Transmission of Fiscal Policy and Tax Reform Bills to the National Assembly is The Nigeria Tax Bill, which seeks to provide a consolidated fiscal framework for taxation in Nigeria.

The Nigeria Tax Administration Bill seeks to provide a clear and concise legal framework for the fair, consistent and efficient administration of all the tax laws to facilitate ease of tax compliance, reduce tax disputes and optimize revenue.

Meanwhile, the Joint Revenue Board (Establishment) Bill aims to establish the Joint Revenue Board, the Tax Appeal Tribunal and the Office of the Tax Ombudsman for the harmonization, coordination and settlement of disputes arising from revenue administration in Nigeria.

This comes after President Tinubu during his speech on Nigeria’s 64th Independence Anniversary on Tuesday (October 1) said some Economic Stabilisation Bills would be transmitted to the National Assembly.

“We are moving ahead with our fiscal policy reforms. To stimulate our productive capacity and create more jobs and prosperity, the Federal Executive Council approved the Economic Stabilisation Bills, which will now be transmitted to the National Assembly.

“These transformative bills will make our business environment more friendly, stimulate investment and reduce the tax burden on businesses and workers once they are passed into law,” he said.

Recently, the Chairman of the Presidential Taskforce on Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, said the Withholding Tax Regulations 2024 has been gazetted.

“I do have some good news, the good news is that the withholding tax regulation has now been gazetted. So, the only reason it hasn’t been published today is because it is public holiday, so first thing tomorrow you will see a copy of the gazette and that provides a lot of relief not just for manufacturers but also every other business in terms of taking away some of the burdens of funding their working capital,” Mr Oyedele said.

Nigeria has been seeking to harmonise its tax base as it has a tax-to-gross domestic product (GDP) ratio of 10.8 percent; comparatively, the average tax-to-GDP ratio for Africa is about 18 percent.