Budget 2011: Presidency to spend N18bn on fleet

Following plans by the Presidency to spend N18 billion from this year’s budget on the maintenance of presidential planes in its fleet, financial and real estate experts have disclosed that the amount is only N1 billion higher than what could provide decent accommodation for the 17 million UN-Habitat estimated un-housed Nigerians.

Figures obtained by BusinessDay has shown that the allocation for the presidential fleet comes under the allocation to ‘Intelligence Community’ which got a total budget allocation of N105 billion, ranking it as one of the top ten allocations in the 2011 budget. - HIDDEN FROM VIEW?

The amount of money the Presidency plans to spend on its presidential fleet of planes which carries it in comfort around the world is about N1 billion higher than the N16 billion with which government plans to confront the housing deficit of over 17 million Nigerians.

The N18 billion on the presidential fleet is also N7 billion higher than the N11 billion the government intends to spend  equipping the country’s police force in 2011, and just about N2 billion less than it intends to spend on the nation’s aviation sector.

Financial analysts have also calculated that the N18 billion, if deployed to the epileptic power supply the country is currently grappling with, could provide 120 megawatts of electricity which is enough to light up Asaba, Delta State capital.

It will be recalled that in August 2010, the minister of Information at the time, Dora Akunyili had, at the end of a Federal Executive Council meeting, announced the acquisition of three additional presidential jets for the Nigerian presidential fleet at the cost of N23.1 billion.

The addition was to complement the eight existing aircraft that were already in the fleet.

Nigeria’s presidential fleet, which is one of the largest in the world, is made up of a Boeing Business Jet (BBJ) bought in 2006 by President Olusegun Obasanjo, a Gulfstream V,  a Gulfstream IVSP, and two Falcon 900s.

It is not clear, though, if the N18 billion allocation to the Presidential fleet in 2011 is purely for maintenance, buying an additional airplane or for both; but a source in the Presidency last night told BusinessDay that there was no plan to buy new planes for the Presidency this year.

In the 2010 proposal, the Presidency had actually proposed the acquisition of four new aircraft for the presidential fleet and had made a budget provision of N23.4 billion in that budget for them.

Akunyili had said then that “the committee set up for the acquisition of the aircraft was able to get a reduction of the sum of $2.9 million from the proposed price of two Falcon 7X aircraft and a reduction of the sum of $5.4 million from the offer of the Gulfstream G550 aircraft.”

She had also explained that “the first Falcon aircraft being purchased will be delivered by the end of the fourth quarter of 2010 while the second Falcon and Gulfstream G550 will be delivered by the end of the second quarter 2011.”

BusinessDay investigations show that Nigeria is one of the few countries in the world with a dedicated presidential fleet. Most countries prefer to convert aircraft used by their national carriers for use by their Presidency crew whenever the President is going on international trips. At other times, such world leaders could use an aircraft managed by the country’s Air Force for local trips.

For example, international trips of the Chinese President are managed by the government-owned national carrier - Air China, while domestic travels are operated by the 34th division of the People’s Liberation Army Air Force.

For the British monarch and other members of the Royal Family, the Prime Minister and other ministers of the British Government, air transport is provided by either No. 32 (The Royal) Squadron of the Royal Air Force (RAF), chartered civilian aircraft or scheduled commercial flights - normally British Airways - for senior members of the royal family, and other commercial carriers for the Prime Minister and aides.

Aside Nigeria, the United States of America is another country that maintains a dedicated fleet of aircraft for its presidency.

With Nigeria’s Presidential fleet parading 11 different planes, BusinessDay analysis shows that the cumulative spend of N41 billion on the presidential fleet in two years would be enough to buy five Boeing 737-600 planes; large enough to start a national carrier for the nation. The average cost of a Boeing 737-600 is N8.5 billion (based on figures obtained from Boeing website). An analyst familiar with workings at airports told BusinessDay that “a national or flag carrier like Air Nigeria can be safely and profitably operated with five aircraft.”

The Federal Government sold Nigeria Airways - the nation’s national carrier - because it could not run it profitably.

The offices under ‘Intelligence Community’ which allocation of N105 billion ranks among the top ten allocations in the 2011 budget include: Office of the National Security Adviser (NSA), Directorate of State Security Service (SSS), the National Intelligence Agency (NIA), and the Presidential Air Fleet.

A breakdown of the allocations to the various units shows that the Office of the NSA plans to spend N37 billion in 2011; the SSS will spend N24 billion, while the NIA is planning to spend N26 billion.

Source: http://www.nigeriannewsservice.com/nns-news-archive/headlines/budget-2011-presidency-to-spend-n18bn-on-fleet

I tire.

Presidential Fleet = N18bn
State House (including food) = N18bn
Total = N36bn.

Nigeria's Presidency budgeted spend of N36bn so far exceeds:
Science and Technology = N31bn
Housing and Land = N25bn
ICT = N18bn