NIGERIA: Nigerians criticize government decision to purchase three new presidential jets

Record ID: 235298

  • Title: NIGERIA: Nigerians criticize government decision to purchase three new presidential jets
  • Date: 12th August 2010
  • Summary: NEWSPAPERS ON SALE VARIOUS OF NEWSPAPER HEADLINES READING IN ENGLISH "FG TO BUY 3 NEW PRESIDENTIAL JETS", "FG ACQUIRES N21B PRESIDENTIAL JETS" AND "FG TO SPEND N23.07BN ON NEW PRESIDENTIAL JETS".
  • Embargoed: 27th August 2010 13:00
  • Keywords:
  • Location: Nigeria
  • Country: Nigeria
  • Topics: Sports
  • Reuters ID: LVA86EYA5MBMUJYATE87S3M3OM1V
  • Story Text: Nigerians have criticised the decision by the country's cabinet to purchase three new jets for the president. The decision came a day after the government said Africa's most populous nation would raise debt to fund elections in January 2010.
    Nigeria's cabinet approved on Wednesday (August 11), the purchase of two Falcon 7X aircrafts from France's Dassault Aviation and one Gulfstream G550 from the U.S. plane maker for the presidential fleet at a cost of 150 million U.S. dollars.
    Although President Goodluck Jonathan has not yet said whether he will contest the polls, most Nigerians expect him to do so, particularly given recent announcements from his administration -- ranging from pledges to boost power supply to building more roads -- that suggest he has plans beyond next January.
    Bismarck Rewane, an analyst at a top investment company in Lagos, said that although the cost of the jets was already provided for in the 2010 budget, the timing raises questions about the government's spending priorities.
    "It's an approved budgetary item, so the president is within his powers to buy three jets or even ten jets as he may. The truth is that there are eleven jets already in the fleet, these three are to replace some of the ageing jets. Whether it is - the timing is correct at a time when the country is going through some austerity measures and trying to jump start growth, whether it is prudent to be committing that kind of resources to three jets rather than on or two, is a question that the Federal Minister of Finance and the Presidency will have to consider. But definitely it would appear that when you are borrowing and also committing the meagre resources towards what can be considered to be not strategic, then it is a debate that will go on for some time to come," Rewane said.
    On Tuesday (August 10), lawmakers approved plans to raise 585 million U.S. dollars via a bond issue to pay for the electoral commission to overhaul voter lists and buy additional ballot boxes for the elections.
    Most Nigerians were angered by the government's decisions.
    "Why can't we just spend that money judiciously in improving the lives of Nigerians. Because Nigerians, we are suffering, we are suffering. There is no money in the country and yet our government goes about spending huge amounts on unnecessary materials, I think to me it is a waste of money," said Lagos resident Rasaq Akanni.
    "Borrowing money to fund elections, and using your own money to fund jets is like a misplacement of priorities," said Babajide Oyemakinde, another Lagos resident.
    Experts say government spending was already due to rise sharply this year and the finance ministry has warned that government revenues, mostly from oil sales, would not be enough to fund the budget. The ministry also said the OPEC member would likely have to use up its windfall oil savings or borrow more.
    The first Falcon would be delivered towards the end of the year, with the second Falcon and the Gulfstream due to arrive by the second quarter of next year, after the elections.
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