The Nigerian government is closing a deal to acquire an Airbus A330 as a presidential jet. This isn’t just any aircraft; it’s a repo from a German bank, taken from an oil prince who defaulted on his loan......READ THE FULL STORY>>.....READ THE FULL STORY>>
Valued at $600 million, the multi-engine, VIP-configured jet is currently on offer to the Nigerian government for just over $100 million. It’s uncertain whether L & L International LLC, the firm handling the sale, will accept this significantly reduced price.
What to know about the jet
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Originally, this Airbus A330 wasn’t lined up for Nigeria. It belonged to an Arab prince, a businessman who used the jet as collateral for a massive loan from a German bank.
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When times got tough, the prince couldn’t keep up with his repayments, leading the bank to take over the jet. Customized for luxury, with every detail crafted for the comfort of a royal, this jet wasn’t easy to sell. Its opulence was too specific, too grand.
L & L International LLC, an American aviation firm, is facilitating the sale, working closely with the German bank to find a suitable buyer. Their efforts have turned towards the Nigerian government, which sees the potential in repurposing the aircraft for presidential use.
An aviation expert expressed optimism about the deal, noting, “If L & L International agrees to this price, it would be an incredible bargain for Nigeria. The aircraft could potentially be resold for two to three times this amount. It’s an exceptional plane.” Meanwhile, a spokesperson from L & L International told PREMIUM TIMES that they had no specific details to divulge regarding the deal.
Also, AMAC Aerospace AG, a Swiss aviation firm with a long-term maintenance contract with Nigeria’s Presidential Air Fleet (PAF), is managing the acquisition process.
They recommended the jet for its cost-effectiveness and reliability, and are now orchestrating the purchase alongside L & L International and Nigerian presidential fleet officials.
Alexis Ott, a director at AMAC Aerospace, declined to comment on the transaction, stating the sensitivity of discussing company business publicly.
How the government aims to finance it.
With the Nigerian government planning to offload three older aircraft to partially fund this purchase, there’s also a significant reliance on the N180 billion contingency fund from the 2023 supplementary budget, financing this acquisition would be a hurdle.
Following an investigative report, the House Committee on National Security and Intelligence urged the federal government to quickly procure two airplanes for President Tinubu and Vice President Shettima, emphasizing the security needs of Nigeria’s top officials.
This recommendation faced backlash from the public, concerned about the timing amidst Nigeria’s economic challenges. Nonetheless, the Senate Committee on National Security and Intelligence later endorsed this proposal.
Speaking from Saudi Arabia, Committee Chairman Shehu Buba stressed the importance of updating the presidential fleet to prevent potential disasters, referencing recent fatal air accidents in Iran and Malawi.
He defended the prioritization of national security and leader safety despite economic hardships and responded to questions about government spending priorities by stating that the safety concerns do not overshadow ongoing efforts to address wage issues.
What Nigerians are saying
The plan to buy this jet has not been without controversy. Amidst Nigeria’s economic strains, the optics of purchasing a luxurious, multimillion-dollar aircraft have sparked debate.
While the presidential official sees this as a prudent security measure essential for ensuring the safe transport of top officials, the citizens are critiquing it as lavish spending during a time when the country is going through an economic meltdown.
