Nigeria's fleet of presidential aircraft is in danger of being impounded by foreign creditors over unpaid debts. The Nigerian Presidential Air Fleet (PAF) operates ten planes but has seen its budget slashed, making it unable to pay for maintenance services and putting the airworthiness of several aircraft in doubt.
Nigeria's presidential aircraft in jeopardy
According to PAF Commander Air Vice Marshal Abubakar Abdullahi, the ten presidential aircraft, ranging from Gulfstream jets to AgustaWestland (Leonardo) helicopters, could be seized by creditors as budget cuts prevent the PAF from paying various service providers. Speaking in the National Assembly during his budget defense presentation, Abdullahi revealed that the branch responsible for transporting leading Nigerian officials, including the President and Vice-President, had received just 1.5 billion naira ($3.3 million) out of a promised sum of 4.5 billion ($10.1 million) for maintenance upkeep.
As reported by ch-aviation, Abdullahi said,
"From the fleet’s records, debts from preceding years are usually carried over into the following budget year, becoming a tradition. Permit me also to state that most of these debts are owed to service providers overseas. Considering that over 85% of the fleet’s expenditure is Forex transactions, the actual budget figure in dollar terms is further diminished. The fleet is currently indebted to some of its service providers due to insufficient funding from budgetary allocations, and the situation makes it bad for planning."
The PAF requested a total of 19.4 billion ($43.7 million) from the 2022 budget but was granted 12.4 billion ($27.2 million), while its proposed 2023 budget of 15.5 billion ($34.9 million) was cut to 8.072 billion ($18.2 million). The branch's predicament has been exacerbated by rising fuel prices, which have more than doubled from N390 per liter in January to N915 per liter, and Nigeria's ongoing foreign exchange crisis.
However, given the diplomatic status of the aircraft, it could prove difficult for creditors to actually get their hands on the fleet. CEO of Top Brass Aviation, Captain Roland Iyayi, told Punch NG,
"I don’t know if that will be easy enough; if it was another asset of Nigeria, it is different, but a presidential jet; it’s like saying a country wants to seize the United States President’s aircraft over debt. It is considered an extension of the sovereignty of the state; so, that may not be as easy as it sounds."
Airworthiness status also at risk
Not only is the PAF unable to pay up for services already provided, but it will struggle to pay for future maintenance and support services in the face of budget cuts. Maintenance costs will only go up given that the average of the presidential fleet exceeds 11 years, while the upcoming Nigerian presidential election will lead to more frequent utilization of aircraft.
Abdullahi said,
"We currently have to have some mandatory upgrades done on our aircraft so as to meet airworthiness requirements. The fleet may be unable to fund these due to a shortfall in the budget."
According to Abdullahi, several aircraft are due for their next maintenance over the coming six months at a cost of around $2.5 million per plane. Additionally, the fleet's aviation and personnel insurance premium - priced at over $5 million - is due for renewal in February.
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What is in the presidential fleet?
Nigeria has maintained a presidential fleet of 10 aircraft since President Muhammadu Buhari took office in 2015. The fleet reportedly consists of:
- 1x Boeing Business Jet (Boeing 737-800)
- 1x Gulfstream G550
- 1x Gulfstream G500
- 2x Dassault Falcon 7Xs
- 1x Hawker Siddeley 4000
- 2x AgustaWestland AW139 helicopters
- 2x AgustaWestland AW101 helicopters
Despite promising to cut the size of the presidential fleet to trim expenses, Buhari has failed to do so during his tenure. The fleet's budget has, in fact, gone up by 121% over the last eight years, receiving 81.8 billion ($184.4 million) since 2016.
Do you think Nigeria's presidential fleet will be seized by creditors? Let us know your thoughts in the comments.
Source: Punch NG