From Madu Onuorah, Abuja

NAF will take delivery of 12 F-7NI multi-role combat jets and three FT-7NI trainer aircraft. The contract also has provision for the supply of the aircraft associated training equipment and spares.

Minister of Information and National Orientation, Mr. Frank Nweke Jnr., said that the contract is worth $251,377,395.

If the plan goes as planned, Nigeria will start receiving both versions of the aircraft next year. Already, the 2005 Appropriation Act passed has provision of N3 billion for the "procurement of Chinese aircraft" for the NAF.

Sources said that though the amount in the budget looks small, the jets would be delivered in phases. And because they are not picked off the shelf, the manufacturing and modifications requested by the NAF will begin once the initial agreed deposit is paid.

Nigeria last took delivery of such new inventory of combat jets in the late 70s and early 80s. But these combat jets are now mothballed. They include the MiG (Mikoyan-Guverich) -21 and the Sepecat Jaguar. Currently, Nigeria's lead fighter is the light combat-trainer, the Alpha jets.

The Guardian had in May exclusively reported that the jets were being manufactured by a consortium of aircraft manufacturing subsidiaries under the Aviation Industries of China I (AVIC I), which is a part-owner of the China National Aero-Technology Import and Export Corporation (CATIC), China's military aircraft manufacturing conglomerate.

AVIC I & II each hold 50 per cent of CATIC shares. The subsidiaries under AVIC I include Chengdu Aircraft Company, Xian Aircraft Company, Nanchang Aircraft Company, Shenyang Aircraft Company (SAC) and their National Trade Bureau.

Officially, the contract is awarded to CATIC.

A modern fighter jet, the test flight of the aircraft was completed by the Chinese in January 1998. Already, the Minister of Defence, Alhaji Rabiu Kwankwaso has paid a visit to the Chinese firm.

The jet was produced as the ultra seven / FC-1(Fighter-China) 1. Designed by AVIC I after studying international market demands, it meets the need of various military environments. It is an all-weather, multipurpose, single-seat, multi-duties light fighter aircraft. Its equipment has the advanced aviation electronic systems that can launch medium-range missiles while realizing the ultra apparent distance attack and the precise opposite attack capability. It can also carry out spatially double duty. The size length is 14.0 metres with height of 5.1 metres. Its wingspan contains wing tip missile, centreline total wingspan of 9.0 metres.

The fighter jet was developed with a total investment in excess of $500 million, including support from the CATIC, primarily for export to replace the 120 F-7M/P fighters currently in service in the Pakistani Air Force. Initially, it was anticipated that the jet would be a high- performance, low-cost fighter plane to supplement the F-10 air superiority fighters developed for the Chinese Air Force. But the improvements in performance affected the programme's costs. And if the final production order is fewer than 300 aircraft, the unit price will rise from the original $10 million to $15 million. And with the modifications the Nigerian Air Force is requesting from the manufacturers, the cost of weapon systems, spare parts and other ground equipment, the prices would obviously go higher.

The company's website puts the price of one unit without the combat components at $11 million.

Discussions on the new jets began in 2003. And to prepare the grounds for the acquisition of the aircraft, pilots and aircraft engineers have been to the manufacturer's base in China. The pilots were sent for combat and advanced training on the use of the F series while the engineers went to get a hold on its maintenance. Earlier, the manufacturers had visited Nigeria and made presentations on the jets to the end-users - the NAF. Following this, a team from NAF then went to inspect the aircraft, coming back with their report.

As a follow-up, the manufacturers again visited Nigeria and met with officials of the NAF. The Air Force authorities tabled their observations about the aircraft including the modifications they want on it. And these modifications in the avionics and weapon systems are being included in the final product to be delivered.

Nweke said that the approval for the procurement showed government's commitment to ensuring that the armed forces are combat ready, adequately equipped and capable of defending the territorial integrity of Nigeria."

He said that while the provision in this year's budget is not enough to pay for the jets, "subsequent payments will be anchored in the annual budgets as they fall due."

On the choice of China for the destination market for the jets, Nweke said that with the end of the cold war, nations now "shop for platforms, equipment and spares where they feel they will get a better deal. But there was competitive process and they won."

Resuscitation of the Machine Tools Company, Osogbo and establishment of a National Metallurgical Agency to stimulate manufacture of motor parts was also approved by the FEC.

Nweke said the Council had studied and approved the draft White Paper of the Presidential Committee on Spareparts headed by Dr. Ahmed Joda, Chairman of the Board of the Nigerian Communications Commission (NCC). The committee recommended a ban on further importation of fairly used motor spareparts, popularly known as "tokubo" although the FEC did not state when it would take effect.

According to him: "The ban is to encourage local production of motor spareparts. It is about protecting our local industries and our lives, encouraging people to be more productive and more creative. Even at that, there are so many spare parts manufactured here in our country."

The government, he stressed, was aware the effects of the ban would have on people currently engaged in it sales and importation, but noted that it was encouraging them to form co-operative societies to get loans from banks to enable them improve on their capital base as well as take advantage of the services of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

He said: "Basically, the white paper recommended an outright ban on the importation of used spare parts. The white paper also recommended the formulation of policies to encourage the production of local spare parts within three years and the privatisation of the Nigerian Machines Tools Manufacturing Company, Osogbo with a view to having that company spearhead the local production of the parts in our country. Further more a national metallurgical laboratory is to be established by Government to render calibration services necessary for self-sufficiency in local production of spare parts."

The FEC also approved a new tariff structure for Nigeria. Expected to last till 2007, it replaces the last Customs Tariff Act of 1995, which expired in 2001.

Minister of State for Finance, Mrs. Nenadi Usman, said the new structure would help businesses in their long-term planning.

In the absence of the new structure, government has been issuing ad-hoc executive orders, which the World Customs Union has been frowning upon.

According to her: "The new structure is simple, will ensure low rates for raw materials and machineries. It will also create a greater level-playing field and make Nigeria closer to the ECOWAS tariff regime."

The new tariff regime, which becomes effective from October 1, 2005 reduced the number of tariff bars to four.

Under it, industrial plants and machines, which hitherto attracted 2.5 per cent would now attract zero percentage tariff. Raw materials and spareparts will attract five per cent tariff, intermediate goods - 10 per cent; finished items - 20 per cent and luxury goods - 50 per cent.

Cigarettes, which hitherto attracted a tariff of 150 per cent would now attract 100 per cent. Cigarettes manufactured in Nigeria which attracted 40 per cent excise duty was increased to 60.

Rice would continue to attract 100 per cent tariff plus 10 per cent Rice levy.

Fertilizer would continue to attract zero per cent, including zero charge on VAT.

On the fate of Nigerian Engineers in the nation's industrial and construction sectors, Nweke said that government approved the white paper on Presidential Committee on Strategic Plan for Engineering Development and Control in Nigeria.

He said: "Government wants Nigerians to enjoy. So, the existing Act setting up the Council of Registered Engineers of Nigeria (COREN) would be overhauled and COREN made the sole regulatory body. Also, the Expatriate Quota Act of 1990 is to be reviewed and all requests for expatriate quota routed through the COREN. This is to find out if we have qualified Nigerians who can do what the expatriates are coming to do."