The Federal Executive Council (FEC) has approved a loan of about $618m from a group of financiers for the procurement of six units of M-346 Master fighter aircraft and ammunition for the Nigerian Air Force (NAF).
Minister of Information and National Orientation, Mohammed Idris, said in Abuja on Wednesday after the FEC meeting presided over by President Bola Ahmed Tinubu said that the breakdown of the loan shows a credit facility of 443,330,781.49 euros and another $141m.
Idris, who stood in for the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said: “From the Honorable Minister of Finance, who is away on official duty in the United States, I’m going to let you know what those FEC approvals are.
“The first one is that there have been approvals for some contracts, about seven of them for the Nigerian Customs Service.
“The next one is that there’s an approval for an agreement for the elimination of double taxation with respect to taxes on income and prevention of tax evasion and avoidance between the Federal Republic of Nigeria and the Hong Kong Special Administrative Region of the People’s Republic of China.
“The third one is an approval to obtain a credit facility of 443,330,781.49 euros and another $141m from a group of financiers for the procurement of six units of M-346 fighter aircraft and ammunition for the Nigerian Air Force.
“And the last one from the Federal Ministry of Finance is the approval for signing of an agreement for the elimination of double taxation with respect to taxes on income and the prevention of tax evasion and avoidance between the Federal Republic of Nigeria and the Republic of Botswana.”
Earlier this month, a team of NAF experts led by Chief of the Air Staff (CAS), Air Marshal Hasan Abubakar, along with officials from the Ministries of Defence and Finance were in Italy to finalise arrangements for Nigeria’s acquisition of 24 M-346 Fighter Ground Attack (FGA) jets as well as an additional 10 AW-109 Trekker helicopters to the 2 already procured by the NAF.
The Nigerian delegation participated in the acquisition Programme Management Review Meeting in Italy with Messrs Leonardo S.p.A.
According to a statement by NAF Spokesperson, Air Commodore Olusola F Akinboyewa, “while in Italy, the CAS made a strategic stopover at the Leonardo Headquarters in Rome, where he engaged with top executives to consolidate a long-term partnership between the NAF and the company. He also inspected the first batch of 6 M-346 jets, noting that 3 are nearing completion, and evaluated key support systems required to boost the NAF’s operational readiness.
“In the Review Meeting, the CAS received updates on the delivery schedules, confirming that the first 3 units of 24 M-346 aircraft to be built for Nigeria are expected by early 2025, with subsequent deliveries running until mid-2026. Meanwhile, with 2 Trekkers already acquired, the additional 10 are expected by early 2026.
“The CAS recommended the establishment of a Programme Management Office to oversee the collaboration and ensure smooth project implementation. He also stressed the need for a maintenance hub in Nigeria to provide long-term support, especially for the M-346 fleet.
“As part of the visit, the Leonardo Aircraft Division put on an aerial display to showcase the performance of the M-346 and highlight its advanced features. Capable of both air-to-air and air-to-ground missions, the M-346 will significantly strengthen Nigeria’s air combat capabilities. On its part, the AW-109 will bolster combat support roles such as Combat Search and Rescue (CSAR), tactical airlift and Medical Evacuation (MEDEVAC) amongst others.
“The M-346 and Trekker acquisitions are key steps towards fleet renewal, in consonance with the CAS Command Philosophy to transform the NAF for greater agility and resilience, with emphasis on the optimization of force structure and establishment for enhanced operational effectiveness.”