Business News of Wednesday, 21 August 2024

Source: bbc.com

Nigerians outraged by president's new plane amidst economic crisis

The purchase comes less than two weeks after thousands took to the streets across the country The purchase comes less than two weeks after thousands took to the streets across the country

Many Nigerians have reacted with outrage after a new plane was bought for President Bola Tinubu at a time when the economy is experiencing its worst crisis in a generation.

The purchase comes less than two weeks after thousands took to the streets across the country to protest at rising hunger and the cost of living.

Elected last year to lead Africa’s most populous country, Mr Tinubu has introduced several economic reforms, including the removal of fuel subsidies, which have contributed to high inflation, currently over 30%.

President Tinubu said the reforms were necessary to cut government spending and stimulate long-term growth.

In January, the Nigerian president announced a 60% reduction in the size of official travel delegations, including his own entourage.

However on Monday, the president departed for France using a newly acquired Airbus A330, which has become the latest addition to the presidential fleet of more than five aircraft.

The cost of the plane has not been disclosed, and nor has the reason for his trip.

X user @Fdmlearn said it wasn’t right that Nigerians were being told to undergo economic pain while the government was buying a new plane for the president.

“Wait so despite the Tinubu led Government telling Nigerians to bear the economic hardship and wait for a better tomorrow, they were busy paying cash for a new private Jet to add to the presidential fleet that has over 6 aircraft’s already?”.

Another X user @RealOlaudah was even more angry.

“Let's tell ourselves the truth. Tinubu's new Airbus presidential aircraft purchase for N150 billion at a time of penury, hunger, and want shows how wicked, selfish, self-indulgent, and insensitive to the plight of the average Nigerian he really is.”

However, @Timi_The_Law says he supports the president’s decision as the plane is not personal but belongs to the office of the president.

“Tinubu's decision to buy a new plane is the right one. The plane belongs to the office of the president, and future presidents will enjoy it,” he posted.

It is not known if lawmakers approved the purchase, which was not mentioned in this year’s budget.

In a statement on X, President Tinubu’s media aide Bayo Onanuga said the new plane would actually save money.

“The new plane, bought far below the market price, saves Nigeria huge maintenance and fuel costs, running into millions of dollars yearly,” the statement read in part.

The new presidential jet was recently released to the Nigerian government after it was seized by a Chinese firm, Zhangson Investment Co. Limited, which obtained a Paris court order to seize some Nigerian government assets following an investment dispute with Ogun state in south-west Nigeria.

The 15-year-old plane, with a market value of $600m (£460m) is said to have an elaborate configuration for VIPs and replaces the country’s 19-year-old Boeing BBJ 737-700.

Nigerian officials have previously said that the presidential fleet had a high maintenance cost due to the age of its planes.

In June, lawmakers recommended the purchase of two new aircraft for the president and his deputy, saying the old ones were not safe.

Last month, lawmakers passed a supplementary budget, which sought to raise the 2024 budget from 28.7 trillion naira ($18bn; £14bn) to 35.06 trillion naira.

It is not known if the purchase of the new plane was included in this budget.

The BBC has reached out to the Senate President and the Office of the National Security Adviser but is yet to get a response.