The budgetary allocation to the Presidential Air Fleet has risen by 121 per cent in eight years.
Findings indicate that the President, Major General Muhammadu Buhari (retd.) has since 2016 allocated N81.80bn for the Presidential Air Fleet maintenance and foreign trips.
The amount includes N62.47bn for the operation and maintenance of PAF, N17.29bn for foreign and local trips and N2.04bn earmarked for other related expenses.
The Presidency has maintained 10 aircraft since the inception of the Buhari regime in May 2015.
They include Boeing Business Jet (Boeing 737-800 or NAF 001), 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.
Though Buhari promised to reduce the size of the fleet as part of his pledge to cut the cost of governance, checks reveal that his regime has failed to live up to this promise.
In October 2016, the Presidency placed an advertisement in a national daily for the sale of Falcon 7x and Hawker 4000.
Interested buyers were asked to inspect the Falcon at the Presidential Wing of the Nnamdi Azikiwe International, Airport, Abuja, and the Hawker at Cessna Zurich Citation Service Centre, Zurich, Switzerland.
In March 2018, the Senior Special Assistant to the President on Media and Publicity, Garba Shehu said that the bid amounts agreed upon by the two preferred bidders for the two aircraft stood at $24m, which was the projected sales figure.
The presidential spokesman, however, said the unnamed winners of the bids reneged when they were asked to pay. According to him, they came up with a new figure of $11m for the two jets.
Describing the preferred bidders’ attitude as absurd, Shehu said under the Buhari regime, no one would be allowed to “take a public asset and run away (with it) for nothing.”
He added that the Presidency was still determined to sell the jets, which he said were still available for “serious buyers.”
In September 2020, the Federal Government announced that the Hawker 4000 aircraft, with registration number 5N-FGX/: RC 066, had again been put up for sale
But the sale of the business-size jet, which entered into service in December 2011, has yet to be confirmed by the Presidency.
However, the National Security Adviser, Maj. Gen. Babagana Monguno (retd), delivered the two AgustaWestland AW101 VIP helicopters in the presidential fleet to the Air Force.
In the 2016 budget, N3.65bn was allocated for the PAF, but this rose to N4.37bn in the 2017 fiscal year.
In 2018 and 2019, the allocation almost doubled, amounting to N7.26bn and N7.30bn respectively.
Closer observation showed a slight drop by N503.75m in 2020, where N6.79bn was budgeted for the PAFs.
This was attributed to the global lockdown following the outbreak of the Coronavirus which stalled flight operations for the better part of 2020.
In the two years following the pandemic, the allocation almost doubled; rising to N12.55bn and N12.48bn for the 2021 and 2022 fiscal budgets.
However, it dropped by 35 per cent in the 2022 and 2023 appropriation bills, with the latter showing an N8.07bn allocation for the PAF.
The Offices of the President and Vice President earmarked N17.29bn for both local and foreign trips.
Buhari and Vice-President Yemi Osinbajo spent N1.4bn on travels in 2016; N1.29bn in 2017; N1.30bn in 2018; N1.30bn in 2019; N2.28bn in 2020; N3.23bn in 2021 and N3.09bn in 2022. They proposed N3.34bn for the 2023 fiscal year.
Aircraft fueling for that period also gulped at least N2.69bn, bank charges, N53.01m and insurance premium on all 10 aircraft on the fleet, N1.78bn.
Meanwhile, the sum of N2.04bn has been allocated for foodstuff and refreshments since 2016.
A comparison of the budgets for the review period revealed a 265 per cent jump in allocations for food and refreshments.
According to the budget documents, in eight years of the Buhari Presidency, N139.2m was allocated for food in 2016; N168.46m in 2017; N193.11m in 2018; N193.11m in 2019; N132.13m in 2020; N193.11m in 2021 and N508.71m in 2022.
The Presidency allocated N508.71m for refreshments in the 2023 budget presented by the President last Friday.
Meanwhile, the cost of debt service has exceeded the amount spent on salaries, pensions and overheads between January and July 2022.
While presenting the 2023 appropriation bill to a joint session of the National Assembly in Abuja on Friday, the President, Major General Muhammadu Buhari (retd.), noted that debt service gulped N3.09tn in seven months.
However, N2.87tn was spent on salaries, pensions and overheads within the same period, with a difference of N220bn.
The president further noted that despite the revenue challenges in the country, it still consistently meets its debt service obligation.
“Despite our revenue challenges, we have consistently met our debt service commitments. Staff salaries and statutory transfers have also been paid as and when due,” Buhari added.
However, speaking at the launch of the World Bank’s Nigeria Development Update titled, ‘The urgency for business unusual,’ held recently in Abuja, the finance minister had admitted that Nigeria was struggling to service its debt.
She said, “Already, we are struggling with being able to service debt because even though revenue is increasing, the expenditure has been increasing at a much higher rate, so it is a very difficult situation.”
Buhari further disclosed that Nigeria had a budget deficit of N4.63tn in the seven months under review, adding that this deficit is largely due to revenue shortfalls and higher debt service resulting from rising debt levels and interest rates.
In a document by the Director General of the Debt Management Office, Patience Oniha, recently obtained by our correspondent, the DMO stated that high debt levels would often lead to high debt services and affect investments in infrastructure.
According to the DMO boss, “High debt levels lead to heavy debt service which reduces resources available for investment in infrastructure and key sectors of the economy.”
Despite this, the government plans to borrow N8.80tn and spend N6.31tn on debt service in 2023.
In its latest Africa’s Pulse report, the World Bank said that public debt in Nigeria is concerning due to the rising debt service-to-revenue ratio.
According to the bank, the debt service to revenue ratio could stand at 102.3 per cent by the end of 2022.
Also, Buhari admitted that the government needs to pay close attention to the country’s debt-service-to-revenue ratio.
