Sections
Poll: Ministry of Niger Delta
Do you support the recently-established ministry of Niger Delta?
N50 billion abandoned defence projects for review
Font size:
Top among the projects for review, according to defence sources, are the $250-million F-7 fighter jets project of the Nigeria Air Force, the N25-billion National Defence College (NDC) project and the moribund Naval Ordinance Depot project, popular referred to as the Monomonon project.
The different projects, it was gathered, have been listed among the white elephant projects by defence and finance experts because of the huge sums of money involved.
Investigations revealed that the NOD (Monomonon) project, which was initiated by the Ibrahim Babangida regime over two decades ago is barely off the ground while the F-7 fighter jets project, which was initiated and personally negotiated by former President Olusegun Obasanjo with the Chinese government in 2000 is stuck mid way because of lack of funds.
The Monomonon project, Business Day gathered, has gulped billions of naira without any significant progress made. The defence ministry inside source said plans have been concluded to move all the missiles, arms and ammunition at the depot to either Kachia in Kaduna State or Makurdi in Benue State for safe keepings.
The Exocert missiles, produced by France, which were initially supposed to be housed in the NOD, were moved back to France over two decades ago and the Federal Government is currently paying heavy demurrage for their maintenance by the manufacturers.
The NDC project, which was initially projected to gulp about N9-billion, Business Day investigations showed, was reviewed upward to N25-billion, an amount considered by defence experts as too huge under the current defence budget arrangement.
The F-7 project, it was also gathered, was meant to provide 14 F-7 fighter jets for the air force for both combat and training.
Business Day’s investigations revealed that since the project was initiated eight years ago, the Federal Government has only been able to pay a paltry sum of $50 million out of the total cost of $250 million for the entire project.
Inside presidency sources confirmed to Business Day that Yayale Ahmed, minister of defence, has concluded plans to review the project downward to a squadron of six instead of the initial 14 under the MoU.
One of the sources said government would be willing to re-negotiate the deal with the Chinese government with a view to paying between $50 and $80-million in addition to the $50-million already deposited by government for the acquisition of the six F-7 fighter jets.
“Let’s be realistic, government cannot fund that project the way it is now. It needs to be reviewed downward to make it realisable,” the source said.
Since the initial payment of the $50-million the Nigerian government has not been able to make any further payment under the Memorandum of Understanding (MoU) between both countries.
Sources told Business Day that when it became clear that the government could no longer fund the project, several attempts were made by the air force authorities on behalf of government to retrieve the initial deposit of $50-million, but the Chinese government resisted the attempt, saying the country could only negotiate with the Nigerian government on the condition that the money already paid be rolled over for the purchase of other air force equipment in China.
Eight years into the impasse, it was gathered that the air force high command was still interested in pursuing the project even when it has become clear that government may no longer fund it.
“The project is a very ambitious one. The air force authorities are still listing the project as one of their major projects in the pipeline. The way things are now, I think they need to cut it down to a level where government can assist,” a top defence source said.
As a first step to reviewing the project, Business Day gathered that the minister was considering convening a defence summit, where issues of all abandoned defence projects would be discussed and reviewed.
The different projects, it was gathered, have been listed among the white elephant projects by defence and finance experts because of the huge sums of money involved.
Investigations revealed that the NOD (Monomonon) project, which was initiated by the Ibrahim Babangida regime over two decades ago is barely off the ground while the F-7 fighter jets project, which was initiated and personally negotiated by former President Olusegun Obasanjo with the Chinese government in 2000 is stuck mid way because of lack of funds.
The Monomonon project, Business Day gathered, has gulped billions of naira without any significant progress made. The defence ministry inside source said plans have been concluded to move all the missiles, arms and ammunition at the depot to either Kachia in Kaduna State or Makurdi in Benue State for safe keepings.
The Exocert missiles, produced by France, which were initially supposed to be housed in the NOD, were moved back to France over two decades ago and the Federal Government is currently paying heavy demurrage for their maintenance by the manufacturers.
The NDC project, which was initially projected to gulp about N9-billion, Business Day investigations showed, was reviewed upward to N25-billion, an amount considered by defence experts as too huge under the current defence budget arrangement.
The F-7 project, it was also gathered, was meant to provide 14 F-7 fighter jets for the air force for both combat and training.
Business Day’s investigations revealed that since the project was initiated eight years ago, the Federal Government has only been able to pay a paltry sum of $50 million out of the total cost of $250 million for the entire project.
Inside presidency sources confirmed to Business Day that Yayale Ahmed, minister of defence, has concluded plans to review the project downward to a squadron of six instead of the initial 14 under the MoU.
One of the sources said government would be willing to re-negotiate the deal with the Chinese government with a view to paying between $50 and $80-million in addition to the $50-million already deposited by government for the acquisition of the six F-7 fighter jets.
“Let’s be realistic, government cannot fund that project the way it is now. It needs to be reviewed downward to make it realisable,” the source said.
Since the initial payment of the $50-million the Nigerian government has not been able to make any further payment under the Memorandum of Understanding (MoU) between both countries.
Sources told Business Day that when it became clear that the government could no longer fund the project, several attempts were made by the air force authorities on behalf of government to retrieve the initial deposit of $50-million, but the Chinese government resisted the attempt, saying the country could only negotiate with the Nigerian government on the condition that the money already paid be rolled over for the purchase of other air force equipment in China.
Eight years into the impasse, it was gathered that the air force high command was still interested in pursuing the project even when it has become clear that government may no longer fund it.
“The project is a very ambitious one. The air force authorities are still listing the project as one of their major projects in the pipeline. The way things are now, I think they need to cut it down to a level where government can assist,” a top defence source said.
As a first step to reviewing the project, Business Day gathered that the minister was considering convening a defence summit, where issues of all abandoned defence projects would be discussed and reviewed.
Add to:
del.icio.us |
Digg
del.icio.us |
Digg
Email to a friend
Print version
Plain text
Comments ( posted):
Post your comment