In a landmark ruling, the Federal High Court in Lagos has declared the sale of Nigeria Air Ltd to Ethiopian Airlines null and void.
Justice Ambrose Lewis-Allagoa, presiding over the case, ordered that the Federal Government’s proposed establishment of a national carrier, Nigeria Air, be halted.
The judgment came as a significant victory for the plaintiffs, the Registered Trustees of the Airline Operators of Nigeria, alongside Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited.
They had sought to stop the sale, citing wrongful exclusion and irregularities in the bidding and selection processes. Justice Lewis-Allagoa granted all the reliefs sought by the plaintiffs except for the ₦2bn damages claim for the injury they alleged to have suffered.
The judge stated, “The proposed establishment of Nigeria Air should not be carried out,” thereby affirming the plaintiffs’ position on the illegality of the bidding process.
The six plaintiffs filed a lawsuit against Nigeria Air Limited, Ethiopian Airlines, former Minister of Aviation Senator Hadi Sirika, and the Attorney-General of the Federation.
They requested the court annul the entire bidding and selection process, including the former officials’ approval and grant of Ethiopian Airlines.
This ruling effectively halts the national carrier project, raising questions about the transparency and legality of the processes involved in its establishment.
Nigeria Air controversy takes flight
In July 2018, Nigeria embarked on a journey to penetrate the global aviation market, with the unveiling of the nation’s proposed national carrier, at the Farnborough Air Show in England.
Five years later, the proposed national carrier landed at Abuja Airport, evoking a range of emotions among Nigerians. While some expressed joy at the long-awaited launch of a national carrier, others questioned the logic of commencing operations with just a single aircraft. However, it was later discovered that the aircraft showcased at the launch actually belonged to Ethiopian Airlines, not Nigeria Air.
Ethiopian Airlines is a major investor in Nigeria Air, holding a 49 per cent stake, Nigerian private investors hold 46 per cent, and the federal government – 5 per cent. The equity percentages have since elicited various reactions, as many think this would pose an existential threat to domestic carriers and the entire aviation sector.
Former Aviation Minister Hadi Sirika is currently under investigation by the Economic and Financial Crimes Commission (EFCC) for alleged money laundering, contract fraud, and other issues related to the Nigeria Air project.
