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FG Puts up N7bn Presidential Jets for Sale

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  • 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.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Federal Government Set to Seal $3.8bn Brass Methanol Project Deal in May 2024

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Gas-Pipeline

The Federal Government of Nigeria is on the brink of achieving a significant milestone as it prepares to finalize the Gas Supply and Purchase Agreement (GSPA) for the $3.8 billion Brass Methanol Project.

The agreement to be signed in May 2024 marks a pivotal step in the country’s journey toward industrialization and self-sufficiency in methanol production.

The Brass Methanol Project, located in Bayelsa State, is a flagship industrial endeavor aimed at harnessing Nigeria’s abundant natural gas resources to produce methanol, a vital chemical used in various industrial processes.

With Nigeria currently reliant on imported methanol, this project holds immense promise for reducing dependency on foreign supplies and stimulating economic growth.

Upon completion, the Brass Methanol Project is expected to have a daily production capacity of 10,000 tonnes of methanol, positioning Nigeria as a major player in the global methanol market.

Furthermore, the project is projected to create up to 15,000 jobs during its construction phase, providing a significant boost to employment opportunities in the country.

The successful execution of the GSPA is essential to ensuring uninterrupted gas supply to the Brass Methanol Project.

Key stakeholders, including the Nigerian National Petroleum Company Limited and the Nigerian Content Development & Monitoring Board, are working closely to finalize the agreement and pave the way for the project’s advancement.

Speaking on the significance of the project, Minister of State Petroleum Resources (Gas), Ekperikpe Ekpo, emphasized President Bola Tinubu’s keen interest in expediting the Brass Methanol Project.

Ekpo reaffirmed the government’s commitment to facilitating the project’s success and harnessing its potential to attract foreign direct investment and drive economic development.

The Brass Methanol Project represents a major stride toward achieving Nigeria’s industrialization goals and unlocking the full potential of its natural resources.

As the country prepares to seal the deal in May 2024, anticipation grows for the transformative impact that this landmark project will have on Nigeria’s economy and industrial landscape.

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Economy

IMF Report: Nigeria’s Inflation to Dip to 26.3% in 2024, Growth Expected at 3.3%

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IMF global - Investors King

Nigeria’s economic outlook for 2024 appears cautiously optimistic with projections indicating a potential decrease in the country’s inflation rate alongside moderate economic growth.

The IMF’s revised Global Economic Outlook for 2024 highlights key forecasts for Nigeria’s economic landscape and gave insights into both inflationary trends and GDP expansion.

According to the IMF report, Nigeria’s inflation rate is projected to decline to 26.3% by the end of 2024.

This projection aligns with expectations of a gradual easing of inflationary pressures within the country, although challenges such as fuel subsidy removal and exchange rate fluctuations continue to pose significant hurdles to price stability.

In tandem with the inflation forecast, the IMF also predicts a modest economic growth rate of 3.3% for Nigeria in 2024.

This growth projection reflects a cautious optimism regarding the country’s economic recovery and resilience in the face of various internal and external challenges.

Despite the ongoing efforts to stabilize the foreign exchange market and address macroeconomic imbalances, the IMF underscores the need for continued policy reforms and prudent fiscal management to sustain growth momentum.

The IMF report provides valuable insights into Nigeria’s economic trajectory, offering policymakers, investors, and stakeholders a comprehensive understanding of the country’s macroeconomic dynamics.

While the projected decline in inflation and modest growth outlook offer reasons for cautious optimism, it remains essential for Nigerian authorities to remain vigilant and proactive in addressing underlying structural vulnerabilities and promoting inclusive economic development.

As the country navigates through a challenging economic landscape, concerted efforts towards policy coordination, investment promotion, and structural reforms will be crucial in unlocking Nigeria’s full growth potential and fostering long-term prosperity.

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Economy

South Africa’s March Inflation Hits Two-Month Low Amid Economic Uncertainty

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South Africa's economy - Investors King

South Africa’s inflation rate declined to a two-month low, according to data released by Statistics South Africa.

Consumer prices rose by 5.3% year-on-year, down from 5.6% in February. While this decline may initially suggest a positive trend, analysts caution against premature optimism due to various economic factors at play.

The weakening of the South African rand against the dollar, coupled with drought conditions affecting staple crops like white corn and geopolitical tensions in the Middle East leading to rising oil prices, poses significant challenges.

These factors are expected to keep inflation relatively high and stubborn in the coming months, making policymakers hesitant to adjust borrowing costs.

Lesetja Kganyago, Governor of the South African Reserve Bank, reiterated the bank’s cautious stance on inflation pressures.

Despite the recent easing, inflation has consistently remained above the midpoint of the central bank’s target range of 3-6% since May 2021. Consequently, the bank has maintained the benchmark interest rate at 8.25% for nearly a year, aiming to anchor inflation expectations.

While some traders speculate on potential interest rate hikes, forward-rate agreements indicate a low likelihood of such a move at the upcoming monetary policy committee meeting.

The yield on 10-year bonds also saw a marginal decline following the release of the inflation data.

March’s inflation decline was mainly attributed to lower prices in miscellaneous goods and services, education, health, and housing and utilities.

However, core inflation, which excludes volatile food and energy costs, remained relatively steady at 4.9%.

Overall, South Africa’s inflation trajectory underscores the delicate balance between economic recovery and inflation containment amid ongoing global uncertainties.

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