₦airaland Forum

http://saharareporters.com/2017/04/17/%E2%80%8Anigeria-us-600million-a29-super-tucano-scam

Link to original medium post ---> https://medium.com/@lecaester/look-what-you-made-me-do-the-600-million-dollar-a29-tucano-scam-9d1930290cc9

The A-29 Super Tucano Acquisition

The Nigerian government, currently led by Muhammadu Buhari, has been trying to procure counter-insurgency aircraft with extended loiter time for ISR (Intelligence, Surveillance, and Reconnaissance) and for CAS (Close Air Support) and somebody somewhere has decided on the A-29 Tucano. There is, of course, no idea about how the equipment is chosen, Nigerian defense acquisitions is 10 parts dark arts and 15 parts BS, with the left hand not knowing what the right hand did and analysts having to figure assets out when mandatory UN reports come back from the suppliers. This unnecessary secrecy in procurement is probably to facilitate corruption, with inflated numbers coming back and reports of cash buys of electronics and even small arms. There have even been reports of 7.62mm ammunition being procured on the black market for North East counter-insurgency operations. But I digress.

It was reported on April 10 by various sources that the US has decided to sell Nigeria 12 A-29 Embraer Super Tucano’s, the planes are powered by a Pratt and Whitney PT6A turboprop engine, and the variant being sold is co-developed by the Sierra Nevada Corporation, all these lovely Yankee bits have given the aircraft dual Brazilian and American ownership. The US has kindly decided to sell 12 units of this Aircraft to Nigeria, despite the human rights violations by its government, for the pittance of 600 million United States Dollars. Leading to a unit cost of 50 million United States dollars per plane, this is for a turbo propeller engine launched in 2003.

I would love to tell you about the two 12.5mm cannons, the 700 horsepower PT6A engines, the rocket pods that it can carry that will rain hellfire on Shekau’s head, I would love to tell you how many hundreds of Boko Haram insurgents will be detected and sent to an early grave due to these amazing capabilities of this awesome turboprop plane, however I cannot. Since its one of the most one-sided acquisitions I have ever seen, and obviously kickbacks must be flowing from someone to somewhere for this deal to be made, this is great business for the American defense industry, anyone that can find a buyer for 10 million dollar base aircraft, even with avionics, parts, and training of pilots (note, of course, we do not know the details of the procurement) for 50 million dollars deserves to be made vice president of the company, oh la la , the money is making me see things. Let’s do a very rough comparison.

The Sukhoi 25 has an approximate price of 25 million dollars per unit cost; Turkey purchased block 50 F 16’s for 57 million dollars apiece from Lockheed Martin, Egypt expressed interest in Mig 29’s at 44 million USD per unit, and eventually bought Rafales from Dassault at 250 million per unit. With the Rafale considered a 4th gen or a 4.5 gen fighter.

Some other links..

https://qz.com/960597/heres-the-case-against-trump-selling-super-t-jets-to-help-nigerias-batte-with-boko-haram/

The cost of the twelve planes is expected to constitute half of the annual defense budget of Nigeria. This at a time when the country’s economy is struggling to climb out of a recession, it is already struggling to pay the salaries of soldiers on the frontlines, and there is a significant funding gap for the humanitarian programs in the country’s war-torn North.

Apologies. But if this is true its supremely stupid what those gangs did. The herdsman problem is a relatively localized issue with small flare ups over certain areas. However if host communities start practicing violence against transient nomads it drives escalation. This is not about fear or protecting Fulani Herdsmen, the best thing is for the men to be found and the perpetrators dissuaded from doing it again, there are better ways to resolve the issue of herdsmen than resorting to violence.

There is a culture of reprisals that occur when transient nomads lose their lives, every nomad up to North Africa marks the area as a hostile area and acts accordingly when passing through, this is due to their limited numbers.

Ignore my churlishness, being overly reactive.

You have an excellent point, penny wise and pound foolish.

linearity:
Edit your original post to include the word 'street' or to obtain a driver's vehicle tag under deception.

I made a good faith effort to educate you on how vehicle works and it is not theory, that is the legal way to obtain it period!

I have read your other response to someone else, who essentially backed my viewpoint and your response was that people use NJ address.

I will agree that, some people do that; but the truth is, they do not do it simply because vehicle tags are cheaper in NJ, the price difference is about $50.00. I have to check my e-pass records now, but if my guess is right to cross any of the bridges/tunnels between NJ/NJ, it cost one nothing less that $25.00; it is the same penny wise pound foolish decisions that makes people to $25 tolls into NJ from NY just because gasses are a few cents cheaper in NJ.

You also failed to mention that, that NY resident must also give up his/her NY license and obtain a NJ license before they will be able to obtain a NJ vehicle and that, it is illegal for a NY resident to have an out of state driver's license. If move into NY newly, you normally have 30 days to give up your out of state license and tags for NY's, otherwise you are a seating duck or targets for tickets, being pulled over, etc.

Now, the only reason anyone living in NY will go through the stress to maintain a NJ driver's license and plates as against those of NY, may be because they stay in a shitty neighborhood in NY with astronomical insurance ratings, or their credits is shitty and either of those factors can shoot up their vehicle insurance bill and as such, they will ride on someone else insurance policy in NJ.

People who do things like these, spoils it for everyone. New Jerseyans pay higher property taxes, sometimes 3x or 4x what NY property owners pay, thereby subsidizing other services that New Yorkers come over to leech on.

folks actually just arrange a Jersey Address and go to a Jersey DMV.

RichYoungNigga:
Mehn.
You cannot live in New York and have a New Jersey license plate.

If you go to the DMV to get your license plate, they will send it to your home address in that state you live in not a different state.
Even if you move to Another state, you will go to the DMV in that state you moved to, surrender your license plate, state ID and drivers license from your old state to them and they will give you a new license plate of their state.
Example is, if you live in New York and have a New York license plate, New York ID card and New York drivers license and you decide to move to Florida to permanently live.
You will go to the DMV in Florida, give them your New York drivers license, New York ID card, New York license plate and they will give you the Florida License plate and Florida ID card

Very funny, I am talking street you are talking theory, when last you go NY ask the people with tags where dem get Jersey tags. You should investigate before you spout pure nonsense.

linearity:
pure nonsense, how costly is a tag in NY? Chances are, it is at par with what it cost in NJ, plus you do not just cross state lines to get vehicle tags.

By law, you can only possess the driver's license of one state at a time, if you move between states you have certain period of time to give up the prior state license for the new state's and you can only get a vehicle tag from the state you are licensed. E.g. If I live in NY and have NY driver's license, I can only get NY plates.

The only exception is, for a company that is registered in multiple states e.g. car rental services, then they can get tags from multiple states.

Even individuals who have houses in multiple states can only get tag from one state concurrently, since they can only get a driver license from one state, the difference is, they can choose which state they want to get the tag from.

Another way around this is for the individual to be incorporated and register the cars under his/her incorporation, then they can get tags from multiple states at the same time, but this option is not practicable for the person typified in your response, since, if we're possible, they would prefer a tag in NJ just to save less than $100 for a two year period.

Bros.. focus on finishing and getting the masters. This is part of life. Thank God your tuition is sorted and make do for now. God bless.. no complaining, work hard, finish strong.

very good catch. due to high cost of tags instate new york. a lot of new yorkers go to Jersey to get their tags. Hope the trivia is useful.

Atmmachine:
He worked hard to get to where he is now.

But the plate numbers on those vehicles parked there are New Jersey plate numbers not New York tags.

Lies, lies and more lies... propagated by people who could not be bothered to check facts. Exorcise laziness from your habits and check what you read online (and in a book, any book), just because its on www does not mean its real.

What is Nigeria waiting for? Kuwait has done this too...

dss free this guy now. He made bail grant him bail.

that pinshure na photoshop tho. poor try dss, try harder next time. y u wan frame this guy na? Very stupid imho, if you have him on sedition try him on sedition, whats with the pic?.. That said, i see this ending soon with some sort of plea deal. Some folks just aint built for detention...

OP frankly you have lost all my respect.

This is ethnic rabble rousing at its worst. Buharis policy has nothing to do with Igbo's, the capital control policies are just plain incompetence and every one is affected. You are creating a strawman for whoever paid you without considering the continued harm to your own reputation.

Oshodi was a LASG issue, your imaginary narrative none withstanding. I tire for people like you, you are the worst Nigeria has to offer and put up straw men to advance yourself or you are unaware that you have committed multiple logical errors (hence my vitriolic ad hominen attack) please rephrase if you truly want a civil conversation, i truly have no turf for bigots or people whipping up tribal sentiment to the harm of the general polity.

You should be ashamed of yourself.

Bigger issue is US exports of Oil. The US is online also (Congress just signed into law that US could export Oil), Oil could easily crack $30 if producers dont ramp back on Supply, Iran online, US online and OPEC going full tilt, Russia going full tilt.

One is offering web design to who needs it, The other is fixing/setting up networks and computers for people and companies who need. You are responsible for you own marketing (word of mouth, social media, flyers etc) so watch your language, use spell check and be a friendly person, its hard to gain traction but these kind of businesses work. If you do not have either skill then you are not out of luck, you can learn them via online classes (quite a lot are free) and through youtube videos, if you do not have access to the internet .... improvise.

For now I would avoid the third .

Client services, web development especially dynamic scripting. (get a lap top and a phone)

OR

Hardware services, in home repair software/hardware (Get a phone)

OR

Solve a significant problem and start a business based on it, lots of problems in the field of computer engineering (find a problem)

Chill towers/cooling
Cyber security protocols
Memory recovery
Low cost Server system
Low cost cluster builds

Normally I dont like paid commentators, but when I do.. I enjoy The artist formerly known as Barcanista.

Most Arab countries are doing this also. Kuwait just announced a similar move this month... It will relieve pressure on the naira also.

Extortionists and blackmailers. Uhm... go ahead and set fire to the bed you are sleeping on. (says sotto voce) Most Global oil companies are off shore, na our country people go suffer pass. POLO SHIELD never disband, na because of una dem dey buy chopper, una don forget the fall of camp 5 or you tink Anderson will come and save you with good PR.

Please the creeks are waiting for you.

My guy, keep propping it up na.

Not only will you inevitably have no choice eventually, but the extended damage from holding off the inevitable can lead to much steeper levels of recession and loss of access to capital markets.

Talking about inflation will wreck the country, biko what levels of inflation and what level of wreckage, look around you. What does it look like is happening now? A million jobs lost this year is not wreckage to you? N220 - N260 is not inflation to you? If its not too hard for you to follow let me help you do the math.. 16 % inflation in a year. Thats extreme in case you were not aware. Here is some psychoanalyzing for your pain.

http://www.crawlingroad.com/blog/2010/11/15/five-stages-of-inflation/ Go ahead, click it... read. see what stage you are in. Then give your self brain.


Does it look like they can hold the line, the market is saying if you let it float it will be N 260 . Or do you not realize that the black market price is the real price or is your elementary (or is it high school) economics that is disturbing your thinking. Na you get mouth wey you dey talk, you know wetin dey cross my mind? If you wan debate my point debate my point, if you want flame me lets take it there. Mtchew..

mbulela:
People just talk because they have keyboards.
Float go where?
Do you realize the inflation that will wreck the country if the currency is allowed to float? Or you just say things because they crossed your mind?
Even the elementary economics i did in high school reveals the silliness of your suggestion.

This is the real right here, the issues are on so many levels.

Nationalized service industries, does anybody have any idea what would have happened if telecoms was a Govt monopoly.

Nationalized refineries, subsidized fuel. Inefficient systems that need to be turned around under NEW MANAGEMENT!

We need to understand that what has not worked in 5 decades will not wake up and start working tomorrow, we need BIG changes, not small ones.

MAURI:
Let's have another thread for this.

Look, we have to start thinking in solutions and not in problem. Are you aware of hom much Nigerians spend on the importation of generators and diesel to power them annually?

I am sure you must have heard / read about the multi billion oil subsidy fraud? Why are finished oil products being subsidized by the Nigerian government? I have explained this in another thread. I am willing to do it again, so you have a complete picture.

Why isn't the government chanelling all these monies into making sure we have operational refineries in Nigeria? It will cost less that all the subsidies put together. For your info.

I will demonstrate the link between lack of operational refineries and it's impact on the Naira / forex (current thread) All the crude we take back and forth abroad to refine and bring back finish products, that whole process is paid for in USD, the scarce forex we otherwise could put to better use. (Transportation, refining, insurance etc. All paid for in hard USD!)

Look bro, our challenges in Nigeria are not as complex as they are made to look, if only the power brokers and the people holding Nigeria to ransom decides to let go of the choke.

Bros.. do you blog?

MAURI:
Let's have another thread for this.

Look, we have to start thinking in solutions and not in problem. Are you aware of hom much Nigerians spend on the importation of generators and diesel to power them annually?

I am sure you must have heard / read about the multi billion oil subsidy fraud? Why are finished oil products being subsidized by the Nigerian government? I have explained this in another thread. I am willing to do it again, so you have a complete picture.

Why isn't the government chanelling all these monies into making sure we have operational refineries in Nigeria? It will cost less that all the subsidies put together. For your info.

I will demonstrate the link between lack of operational refineries and it's impact on the Naira / forex (current thread) All the crude we take back and forth abroad to refine and bring back finish products, that whole process is paid for in USD, the scarce forex we otherwise could put to better use. (Transportation, refining, insurance etc. All paid for in hard USD!)

Look bro, our challenges in Nigeria are not as complex as they are made to look, if only the power brokers and the people holding Nigeria to ransom decides to let go of the choke.

You are aware that you cannot just "get dollar at the official rate".. Everything is capped. so if I want to study at a 100K a year university(heck 20 a year sef), CBN wont give me all the money.

If I want to buy a component for my combine harvester, it may not be on the approved list .. hence .. down time. Energy companies will try and use futures and puts and arbitrages and they will lose money on the exchange rate. Who wrote approved list? If I need beets is it on the approved list!

And fyi.. its not only in Nigeria o, every country in the world that I have been to has a BDC, actually you can trade forex FREELY if you want in the US and in Western Europe. In any currency!

Harwoyeez:
As an Economists, I'll suggest d total cancellation of dollar sales or rather dutch auction. Its only in Nigeria that dey trade dollars in a Naira dominated economy. This further creates pressure on naira and hence dis present situation but if cancelled, anybody in need of dollars will work into banks n BDC to get their forex at d official exchange rate. I hope this will clarify abit for u

Those be fighting words.

Listen to what I said, why are you challenging my "pali" .. Its not sustainable to try and fix the value of the naira, thats why you are seeing us doing all these capital controls. The limited industrial base will be destroyed if we cannot access capital markets, mining, energy, banking, finance, the bond market, consumables... That will kill the economy.

Fiat money decreasing in value will not!

1freshdude:
Bro, I assume you are not an Economist, it is not sustainable to let the Naira float, it would make the Naira valueless killing the economy.

I dont think we can afford to fix the dollar. We dont have forex to fight at keeping the naira at any level. Demand and supply will determine the price of essential goods, why should we treat them any difference, the country will consume what it can afford! The issue is quite severe and the more we delay the worse the crash will be and we will lose the confidence of the capital markets (this has already happened!)

1freshdude:
What about essential goods? What alternatives will people seek? what is the alternative to electricity generating sets? what is the alternative to household appliances? what will the country consume? explain please.

https://www.nairaland.com/2791704/recession-horizon#40854608

Situation may get worse, with this level of currency controls. There will be no FDI coming in, no FDI and no access to credit for most companies. Layoffs , layoffs, layoffs... people will suffer and we are still talking, please lets understand this is severe.

Is any one out there thinking this through, stop playing politics and let the naira float, lets be fully liquid.

Simply put, Because the official price is not real, its subsidized. Official rate has a part govt pays for every dollar. Street value is the international value without CBN subsidy.

HyDef:
Why is there such a disparity between official rates and black market rates?

I know nothing about economics, can someone explain? If the banks are cheaper, why doesn't everyone just change cash there?

Honestly this is beyond comprehension, the only good thing is effectively eliminates the BDC's who were arbitraging between the real value (black market) and the official , now they will have limited access and they wont be able to arbitrage (too bad, welcome to Nigeria.. ease of business is very hard). Now if you want dollars, deal with the mallams.. However note one thing, they will crack down on the mallams next.

Obviously trying to fight supply of dollars in the market, but thats not whats driving devaluation. Oil price go down, naira goes up. How simple is this for us all to understand, if we keep importing, with less supply this actually makes the devaluation WORSE....

supply and demand, limit supply with same demand, price goes up. Kindergarten economics... what is CBN doing exactly?

@Mauri

I wish I could buy you a round of drinks, succint, well put and accurate .

THANK YOU!

Note that the US is looking to start exporting crude. they are currently one of the biggest producers of crude oil, with Iran coming online and crude coming online from the US the long term outlook for crude is not positive. Look to coal for an example, it will become an extremely low priced commodity.

No easy fix, we do not have enough wealthy people to serve as a tax base, we must increase the wealth of all the people and then tax them.

See my brief blurb on the coming recession.

https://www.nairaland.com/2791704/recession-horizon

See my post on the coming recession. And what we can do to get out of it..

https://www.nairaland.com/2791704/recession-horizon

This is just a short blurb of some observations. First ... Some links.

http://www.starrfmonline.com/1.8429850 (120 K job losses)

The unending fall in oil prices has resulted in massive job cuts in the oil industry, with Nigeria’s oil and gas companies slashing about 120,000 direct and indirect jobs, the immediate past National Industrial Relations Officer, Petroleum and Natural Gas Senior Staff Association of Nigeria, Hyginus Onuegbu, has disclosed..... (Go and read the link)

http://sunnewsonline.com/new/nigerias-oil-workers-risk-job-loss-over-irans-return-to-crude-market/ (more losses projected when Iran goes online)

http://www.dailytrust.com.ng/news/business/recession-fear-of-job-losses-heightens/113946.html (CBN issues recession warning)

http://www.ghanaweb.com/GhanaHomePage/worldBusiness/Nigeria-massive-job-loss-looms-in-banking-sector-377117 (TSA leading to massive job losses/this one is a good one though... Banks have been fleecing the govt)

Those are some of the canaries in the coal mine that lead us to the systemic issue in our polity, low oil price, low foreign reserves, lack of liquidity due to currency controls, currency controls put in place to prop up a falling naira.

We are here again , a failed economic policy of trying to strengthen the naira has brought us to the point of begging OPEC to reduce output so that we are able to sell our oil at an artificially raised price. Hoping we can defend the naira long enough until this raised price occurs. Which it will not since Russia, Iran and Canada (shale and Oil sands) will simply pick up any supply slack given by Saudi Arabia reducing out put.


But worse of all, the currency controls have led to a completely illiquid market with no one able to access forex to buy materials/imports. And even if you go on the black market, the artificially suppressed naira will probably wipe you out since nobody is willing to pay an 80 % increase in cost of finished goods (when this may be the main price!)

Unfortunately this all spells trouble. Some reports indicate a couple of million jobs lost over the past year and are projecting another million jobs. Any economy that bleeds that much in such a short time is clearly looking a recession in the face. This is not about bad news , this is about understanding (in very brief lingo) how we got here.

Now... The Way Back

CBN must abandon the defense of the naira and open the up the market to allow FDI back in, without this organizations cannot access credit to tide them over. Politics be damned, do the right thing.

Get serious about diversifying the economy, this is probably be a pipe dream ... But until we really understand that this is how to get off being a cyclical economy (with our cycles based off the price of oil) Nigerias last big Bull market was off the back of a long uptick in oil price, guess what happens when oil prices go down (the bears come out to play). This is a big question that involves solving the security issues, the power issues, the corruption and ease of business issues (I can be here all day, and I will be).

Every man and his wife go and start a small business, there wont be much jobs , banking is getting hit, so is manufacturing, so is mining. Now is the time to get into small business, small trade, find something to export, arts, crafts, technology, ideas, blogs, entertainment, widgets, small handmade gadgets, make it and sell it on a portal. Lets double down on Nollywood, our arts, sports as a driver of internal revenue.

A viable tax structure , this is last , after diversifying the economy has occurred, tax it to maintain the services created.

Security, Power, Logistics(roads and communications) here are the 3 items that Govt has responsibility over, nothing else. Everything else is in our hands. And if we have an idea to solve those 3 then lets do it!

Winter is coming.