Nigeria, the
worldover, is believed to be a country with stupendously rich men and
women, who will stop at nothing to show off their wealth, legitimate or
not. For a nation, where majority of the citizens live below a dollar
per day, having scores of private jet owners is a sharp and painful
societal imbalance.
As floods
and bombs ravage cities in the country, the rich fly over the "trouble
spots" to conduct their businesses in calm areas or even overseas. They
enjoy VIP treatment, both in Nigeria and overseas, as they usually go
through the fast-track lane in any airport they land.
In the
midst of ravaging poverty, Saturday Sun investigations have revealed
that the number of political office holders, ranging from the president,
state governors to ministers and other wealthy Nigerians moving around
in private jets has suddenly jumped up in the last two years, raising
concerns about how much is spent annually on these executive jets now
more than the number of airplanes on the fleet of commercial airlines in
the country. Further findings reveal that a moderate estimate of a
whopping N78 billion is spent annually to maintain this air luxury by
the nation's wealthy and powerful class.
What began
like an exclusive preserve of the very wealthy Nigerians (less than 20)
early in the millennium, has become the order of the day today, with
bankers, church leaders and musicians joining the fray. Findings show
that the weakness of the domestic operators and the sharp reduction in
the number of airlines and airplanes also contributed to the desire to
own private jets.
From
January till date, four domestic airlines (First Nation, Chanchangi,
Dana and Air Nigeria) have vacated the domestic scene, taking with them
about 22 medium haul jets. Today, the country has only five airlines
(Arik Air, Aero, Medview, Overland and IRS), with a total number of 36
aircraft serving domestic, regional and international routes daily.
Experts
have predicted that these remaining surviving carriers, already
neck-deep in debt and other operational crises, might close shops in
months ahead, except the government takes pragmatic steps to keep them
afloat. The concomitant effect of this is that airlines no longer keep
to their schedules.
Very busy
businessmen and wealthy pastors have had to languish at various
terminals for up to 10 hours, as they waited impatiently for a flight of
about 45 minutes. With incessant flight delays and cancellation robbing
them time and money, some considered going for executive jets.
The Media
Assistant to the Director General of the Nigerian Civil Aviation
Authority (NCAA), Sam Adurogboye, told Saturday Sun that the regulatory
agency now has 77 private jets in its registry, which are based and
operate from Nigeria, in addition to the 10 in the presidential fleet
solely used by the president and his family, the vice president and his
family as well as the Senate president and speaker of the House of
Representatives.
Out of these, 10 are Nigerian registered, while 67 carry foreign registration numbers.
With 77
jets, it means wealthy Nigerians have splashed at least $4 billion on
luxury airplanes, using $50 million as the average cost of each
aircraft.
A private
jet goes for between $40million and $65million, according to the
websites of major private jets manufacturers, like Bombardier of Canada;
GulfStream and Hawker Siddley of United States and Embraer of Brazil.
Aside
market forces, the cost is determined by the configuration (seating
arrangement), type of luxury finishing, onboard entertainment system and
navigational facilities, engine capacity and general operational
efficiency.
For any
Nigerian bourgeoisie, the type of executive jet owned (not house) is the
true reflection of his/her social standing. From oil magnates to
governors; pastors to politicians, business moguls to celebrities, the
insatiable quest for executive jets is glaring.
Pastors
that cruise in executive jets include Pastor Enoch A. Adeboye, Rev
Matthew Ashimolowo, Pastor Chris Oyakhilome, Bishop David Oyedepo and
latest entrant, Pastor Ayo Oritsejafor, among others.
In the
secular world, top businessmen, like Alhaji Aliko Dangote, Africa's
richest man; Chairman of Globacom, Dr. Mike Adenuga; Chairman of Zenon
Oil, Femi Otedola; Mr. Ifeanyi Ubah, chairman/CEO, Capital Oil & Gas
Industries and Executive Chairman of Arik Air, Sir Arumemi
Johnson-Ikhide. Some state governors and top bankers also cruise in
luxurious jets.
The popular
brands in Nigeria are Gulfstream 450, 550 and 650; Bombardier
Challenger 604, 605; Global Express; Embraer Legacy, Falcons and Hawker
Siddley 125-800 and 900XP.
The
Gulfstream IV, according to experts, can fly up to 45, 000 feet above
sea level (10, 000+ more than most commercial aircraft). At that level,
the jet goes much faster than any commercial airplane in the sky, thus
drastically reducing flight time. On the presidential fleet are two
Falcon 7X jets, two Falcon 900 jets, Gulfstream 550, one Boeing 737 BBJ
(Nigerian Air Force 001 or Eagle One), and Gulfstream IVSP.
The rapidly
growing market has also made the manufacturers of these luxury brands
to fall over themselves to market their premium products, as Nigeria is
reportedly the second most lucrative market after China. Also, there are
strong indications that the economic downturn in Europe and the United
States has made Nigeria and China to become the best choices for the
manufacturers.
A top
aviation official said: "Two countries buying private jets now are China
and Nigeria. Europe and America are going through turmoil; so, their
people are no more buying. This accounts for the trend that whenever
some of the private jet manufacturers develop any new jet, they take
them to Nigeria and China. The private jets in Nigeria are owned by top
politicians, oil magnates and business moguls. There are still several
private jets on order by wealthy Nigerians. The buyers and the sellers
always notify us at the NCAA because we must certify the airplane,
especially if it'll be registered and flown here. We've been notified
for the ones that will be purchased in 2013. Some of these airplanes
also come with foreign registration credentials."
Virtually
on a monthly basis, the manufacturers fly in their latest series and
dangle them before salivating Nigerians, who, without hesitation, begin
to place orders. Saturday Sun gathered that about 20 airplanes would be
delivered to Nigerians in 2013.
In Nigeria
today, the rising case of kidnapping, terrorist attacks and general
feeling of insecurity have forced scores of wealthy Nigerians to go for
executive jets.
Further
investigations reveal that the choice of foreign registration is to
avoid the prying eyes of the NCAA in oversight functions, which, in a
way, may reveal, in some cases, incriminating information about the
owner(s) deals. But with foreign registration, oversight functions
rests, to a large extent, with the country of registration and where
safety is violated within the Nigerian airspace, NCAA "detains" the crew
and seek recommended punishment from its counterpart in the country the
airplane is registered. But outside safety issues, the airplane and its
owner are insulated from any form of Nigerian regulatory scrutiny and
that gives the owners a high level of privacy.
Further
findings show that from late 2010, when cases of bombings and kidnapping
became rampant, till date, about 35 private jets have been acquired by
wealthy Nigerians. The scenario is that they live in fortified mansions,
ride in convoy of choice armoured plated vehicles and then cruise in
executive jets.
With this style of operation, there is little exposure to the public, where they are vulnerable to kidnap or attack.
Analysts
also say that unreliable schedule from ailing domestic operators and few
numbers of charter operators has driven the bourgeoisies to gun for
private jets.
A pilot of
one of the executive jets told Saturday Sun: "My boss doesn't see the
type of airplane he wants to fly among the charter operators. He likes
luxury jets but most of the charter planes are just normal basic jets.
If it were to be a car, I'll say he likes the limited edition or the
type you call the 'Full Option.' So that's what the Challenger offers.
He can work and sleep onboard without really missing his home that
much," he said.
A visit to
the private terminals in many airports across the country shows alluring
display of various executive jets belonging to Nigerians. Some of them
are owned by popular citizens, while the ownership of others is shrouded
in secrecy.
A top
aviation source said it is difficult to get the real identities of
owners of some of the private jets in Nigeria because, at times, they
buy them through several channels, including companies in the US. The
foreign company then sells or leases it to another company in Nigeria
and from that company they are acquired by Nigerians.
A top
source at the Aviation Ministry said that most of the acquired jets are
given to charter operators to manage and maintain and the owner pays
accordingly.
The source
further said that private jet owners have flooded the Federal Airports
Authority of Nigeria and the Nigerian Civil Aviation Authority (NCAA)
with requests for space for maintenance facility and parking.
Conflicting figures
Various
schools of thought have picked holes that only 77 private jets are
officially flying in the country. There is a strong belief in some
quarters that wealthy Nigerians own about 200 executive airplanes. Such
is the belief of the Nigerian Institute of Estate Surveyors and Valuers
(NIESV), which reportedly said Nigerians have invested about N1.3
trillion on private jets in the last three years, even as it stated that
the number has jumped from 50 to 200 within the same period.
However,
setting records straight, the Director General of the NCAA, Dr. Harold
Demuren, said most of the luxury aircraft seen in various airports in
the country belong to foreign investors, who fly in them to facilitate
their businesses.
In a
telephone interview with Saturday Sun Wednesday, Demuren said the luxury
airplane owners do a lot of shuttling, both within and outside the
country, such that their itinerary cannot be accommodated in the
schedule of the local airlines.
He said:
"Some of the private jets you see are not owned by Nigerians. They are
owned and used by foreigners who are mainly investors. You know the
government is now doing a lot of businesses with foreign investors and
they often prefer to come in their private jets. When they come here,
they may also have to shuttle within the country too. It's their
business and all we are concerned is that they follow the rules and
operate within the laws of the land. They must also comply with safety
regulations as well.
"Our
Nigerian businessmen too have private jets. You cannot stop them from
acquiring it. They need it for their businesses. Look at Aliko Dangote,
Femi Otedola, Mike Adenuga and others. They have these jets and they
travel overseas often and we cannot stop them. Their businesses have
international links. We have to be careful so that we don't insinuate
something wrong about it."
Rip-off
Aside the
questionable circumstances in which the private jets are acquired, a
FAAN source said the owners are not paying their bills accordingly. In
other climes, private jet owners are billed heavily, since their jets
come under the luxury items list, which attracts extra charges.
"Reverse is
the case in Nigeria. Some of these big men, most times, do not even pay
the appropriate charges. They enjoy these airport and airspace services
almost free of charge. If you touch them, they scream and run to higher
authorities," he said
Maintenance and crew
According
to aviation experts, the wealthy men who afford brand new executive jets
do not spend so much on routine maintenance, except for fuelling or
other charges. Others also say airlines spend between 15 and 20 per cent
of the cost of an aircraft on its operation annually. They say that
averagely, a little less than one-fifth of the cost of the plane is
spent every year on insurance, flight and cabin crew, maintenance,
fuelling, catering and training. In Nigeria, most of the private jets
are less than five years old. This means that in a year, an average of
N900 million is spent to maintain each of the 87 executive jets in the
country bringing the total cost to over N78 billion annually. This is in
addition to the cost of chartering airplanes by some state governors,
ministers and wealthy individuals who are yet to take possession of
their own private jets. Depending on the number of hours, type of jets
and other factors, some of them pay as much as N2 million to charter a
plane for a local trip.
However, a
source at the NCAA said the cost of overseas maintenance will be about
$250,000 per airplane annually, as the owners usually want them in top
shape, so as to respond to urgent duty calls. By simple permutation, it
means the 77 airplanes on NCAA's registry will gulp about $20 million
per year on maintenance alone.
Aside the
mandatory checks, each private jet is expected to be manned by a pilot, a
first officer and at least one cabin crew at any given flight. For
every private jet owner, he has up to 10 staff attached to the airplane.
Aside the aforementioned, there is also a certified maintenance
engineer, a dispatcher and other personnel, who may not compulsorily be
on the flight but are on the payroll of the owner.
The pilots
and cabin crew are expected to go for their regular re-currency training
overseas. They are also to go for their mandatory simulator training
every six months all at the owner's cost.
An
airline's maintenance engineer who does not want his name in print said
the cost of general operational cost of operating a private jet is
enormous.
"It's not a
stuff for the boys. It's really for the big boys. Too many payables.
You have to pay the crew. Some of the pilots are on N2million monthly.
Some are on N1.5million and others on N1million. It all depends on their
level of experience. Interestingly, you must pay the pilots, whether
they fly or not. You must keep them on your payroll. You can't run a
permanent ad-hoc arrangement. You must have a structure. You also pay
the cabin crew about N400, 000. You also pay other ground and
administration staff. Then you come over to maintenance that is done
overseas. You also do your documentation. You pay for parking and
landing, fuel, hotel accommodation (when they fly overseas or outside
their base), training, navigational charges and taxes. The general
operational cost hovers around N40 million monthly (including salaries)
if the owner makes only few trips. The cost will be higher if the owner
travels overseas more often. I really feel for my boss, but he has the
money. But to me, anyone who doesn't make money carelessly cannot own a
jet. In Nigeria, no one asks such question", he said.
Money spinning
According
to the former National President of Airline Cabin Crew, Olumide Ohunayo,
who is also an aviation consultant, developed countries and some parts
of Africa see private jet owners as cash cows of the aviation sector.
This, he said, is because they enjoy luxury service.
"So, all
the charges commercial airlines or charter operators pay are far lower
than what is slammed private jet owners. The idea is to limit the usage
to the very affluent. The charges are also high, so that it doesn't
become everyone's affair and congest the airspace and the terminals. The
high charges they are made to pay are used to fund civil aviation. More
so, they do not ever benefit from concessions, subsidies and other
palliatives of government. Rather, they are to pay higher duties," he
explained.
Concluding,
he said: "The big question, however, is: are we replicating all these
in Nigeria? Are we toeing the lines of others and do things, as we
should? I do not think so. With the present rate of acquisition, you can
be sure the system is being short-changed."
PASTORS WHO FLY PRIVATE JETS
* Pastor Enoch A. Adeboye
* Rev Matthew Ashimolowo
* Pastor Chris Oyakhilome
* Bishop David Oyedepo
* Pastor Ayo Oritsejafor
BUSINESSMEN WHO FLY THEM
* Alhaji Aliko Dangote
* Dr. Mike Adenuga
* Mr. Femi Otedola
* Mr. Ifeanyi Ubah
* Sir Arumemi
Johnson-Ikhide
Culled From: The Sun
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