One year after, economy yet to feel positive impact of Buhari’s globetrotting

It was one year last Sunday since President Muhammadu Buhari took over the reins of government. Available figures suggest that within the period, the President of ‘Change’ may have spent at least an estimated $1million on his 29 trips outside the country so far.

This staggering sum, according to BDSUNDAY findings does not cover costs incurred by those who made the journey with him at their own expense and huge amounts spent on maintaining the Presidential air fleet, which totals ten in number.

As at six months into the administration, the Presidency had in defence to a report said N2.1billion had been spent on the maintenance of the fleet. This figure the Presidency had said
covered personnel cost, overhead, and capital expenditure.

Since his assumption of office, the president has led a high-powered delegation of Nigerian officials on various foreign trips or what his supporters call diplomatic shuttles aimed at garnering support for the administration and wooing investors.

But critics often term the President’s frequent travels a jamboree and wastage of scarce resources particularly at a time the country has seen well over a halving if its revenues on slumped oil prices.

BDSUNDAY review of these trips and estimates of possible financial implications and gains accrued show that the President has so far made 29 foreign trips to 22 countries, since resuming office May 29, 2015.

On each trip, the President travels with at least 40 people on his advance team; that includes government officials, aides, security and media staff. These trips, though coming with their economic benefits, could also have helped drain the already depleted finances of the country solely dependent on oil.

The team, usually shared in two, goes two days ahead of the President to any foreign country. Sometimes, the size of the team is determined by the nature of the trip or the country visited.
Findings indicate that depending on the number of days spent on a trip, the Presidency can spend an average of $10,000 or $12,000 as per-diem for the 22 members of the advance team, per day and anything from $33,582 for four days on a trip where the President spends just a day.

This covers accommodation and feeding for each of the members of the advance team, and depending again on the grade level, some are paid
$381 per day.

This amount also excludes the budgets for contingencies and that which takes care of the main body.

Former President, Goodluck Jonathan had during an interview confirmed that it costs the Presidency so much to move people around whenever he needed to move outside the Presidential Villa.

The most expensive part of any of these trips is the transportation of each member of the advance team, the main body flies with the President. Air Tickets procured are mostly premium economy which obviously is slightly higher than the normal economy class ticket.

Economy premium tickets cost anything between N400,000 and N600,000 depending on the country and period of purchase. Sometimes, they may be given rebates.

Though government claims the trips had come with appreciable benefits, critics and in fact the larger populace say they are yet to be convinced on the gains made from this one year of globetrotting.

For instance, Aso Rock claims the benefits of the President’s trip to the US include: the proposed $2.1 billion fund from the World Bank for the re-development of the northeast battered by Boko Haram; $5 billion from US investors in Nigeria’s agriculture sector; $1.5 billion investment in the Nigerian health sector; and another $5billion investment from the US in our country’s power sector.

The Presidency had after the President’s return from China said the trip yielded additional investments in Nigeria exceeding $6 billion USD.

The President had also said he believed that the several agreements concluded with the Chinese government during his visit will have a huge and positive impact on key sectors of the Nigerian economy including power, solid minerals, agriculture, housing and rail transportation.

In the power sector, North South Power Company Limited and Sinohydro Corporation Limited signed an agreement valued at $478,657,941.28 for
the construction of 300 Mega Watts solar power in Shiroro, Niger State.

In the solid minerals sector, Granite and Marble Nigeria Limited and Shanghai Shibang signed an agreement valued at $55 million for the construction and equipping of granite mining plant in Nigeria.

A total of $1 billion USD is to be invested in the development of a greenfield expressway for Abuja-Ibadan-Lagos under an agreement reached by the Infrastructure Bank and Sinohydro Corporation Limited.

For the housing sector, both companies also sealed a $250 million deal to develop an ultra modern 27-storey high-rise complex and a $2.5 billion agreement for the development of the Lagos Metro Rail Transit Red Line project.

Other agreements announced and signed during the visit include a $1 billion for the establishment of a Hi-tech industrial park in Ogun-Guangdong Free Trade Zone in Igbesa, Ogun State.
Furthermore, the Ogun-Guangdong Free Trade Zone and CNG (Nigeria) Investment Limited also signed an agreement valued at $200million for
the construction of two 500MT/day float gas facilities.An agreement valued at $363 million for the establishment of a comprehensive farm and downstream industrial park in Kogi State was also announced at the Nigeria-China business forum.

A $500 million project for the provision of television broadcast equipment and a $25 million facility for production of pre-paid smart meters between Mojec International Limited and Microstar Company Limited, was said to be underway.

The outcomes of the US and China trips appear to be the most hyped out of the 29 foreign trips made by the President in just one year.

However, this is yet to translate to tangibles as reports by the National Bureau of Statistics (NBS), show that total foreign investment inflows to Nigeria dipped 54.34 percent to $$710.97 million in the first quarter of 2016. This may have been necessitated by the current controls on the foreign exchange rate.

Nigeria’s real Gross Domestic Product (GDP) growth rate also declined to -0.36 percent in the first quarter of this year.

Nigeria’s unemployment rate is not looking good either. Figures from the NBS indicate increase to 12 percent in the first quarter of 2016 with about 1.5million Nigerians thrown back into the job market leaving about 15.2million youth unemployed.

President has however, made some remarkable achievements in his anti-graft war, with major discoveries made in the arms purchase deal by the previous administration amongst others and recovering some of the funds.

He also kick-started the Treasury Single Account (TSA) which his government said has helped in saving over N2.2trillion.