FEC approves $618 million loan to purchase fighter jets, ammunitions from Italy 

The Federal Executive Council (FEC) has approved a loan of approximately $618 million from a consortium of financiers to acquire six Italian-made M-346 attack jets and ammunition for the Nigerian Air Force.

The Minister of Information and National Orientation, Mohammed Idris announced this on Wednesday.

The Air Force previously stated that the first three jets are expected to arrive by early 2025, with the remaining deliveries continuing through mid-2026.

Backstory

Nigeria’s air force announced last week the acquisition of 24 Italian-made M-346 attack jets and ten AW-109 Trekker helicopters as part of its fleet renewal strategy. Air Force spokesperson Olusola Akinboyewa stated that a delegation, led by Chief of the Air Staff Air Marshal Hasan Abubakar, met in Rome with executives from Leonardo S.p.A., the manufacturer.

The company confirmed that the first three M-346 jets are expected to arrive by early 2025, with the remaining deliveries continuing through mid-2026.

Nigeria first initiated talks with the Italian firm in early 2024 when Claudio Sabatino, Vice President of Leonardo, met with Nigeria’s air force chief, Hasan Abubakar, in Abuja.

Insecurity in Nigeria 

The Federal Government has significantly increased spending on defense and security in recent years to address various security threats nationwide, allocating N3.3 trillion to the defense sector for the 2024 fiscal year.

In the Northeast, Boko Haram insurgency persists, though the group has been considerably weakened over the past decade. In the Northwest, banditry continues to disrupt economic activities, particularly farming, in states like Zamfara, Sokoto, and Katsina.

Meanwhile, the South faces challenges from kidnapping and secessionist movements in the Southeast, which have disrupted business operations. In the Niger Delta, crude oil production remains low due to persistent oil theft.

Impact of insecurity on Nigeria’s economy 

The impact of insecurity across the country has nearly crumbled Nigeria’s economy with the oil and agricultural sectors the most impacted.

• The World Bank’s food security report for Nigeria earlier this year projected that seven northern states would experience severe food security challenges due to rising food inflation and insecurity in key agricultural areas.

• In the Northeast, the Boko Haram insurgency has devastated food production, destroying farmlands on a large scale and killing farmers. Recently, the global lender stated that Nigeria is one of the countries most impacted by food insecurity as food inflation crossed 40% earlier in June 2024.

• On the other hand, Nigeria’s crude oil production continued to fall below the OPEC-designated quota. In September, average daily crude oil production stood at 1.35 million barrels.