The Federal High Court in Lagos has halted the sale of Nigeria Air to Ethiopian Airlines in a significant ruling on Monday.
Justice Ambrose Lewis-Allagoa declared the transaction invalid and legally ineffective, effectively blocking the Federal Government’s plan to establish Nigeria Air as the national carrier.
This ruling comes in response to a lawsuit filed by the Registered Trustees of the Airline Operators of Nigeria and five other aviation sector entities.
The plaintiffs raised concerns about their exclusion from the project and the flawed bidding process. While the court granted most of the plaintiffs’ requested remedies, it denied their claim for N2 billion in damages.
The court’s decision puts the future of Nigeria Air on hold, pending further judicial review and potential changes to the project’s execution.
The plaintiffs in the lawsuit comprise the Registered Trustees of the Airline Operators of Nigeria, along with Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited.
On the opposing side, the defendants include Nigeria Air Limited, Ethiopian Airlines, former Minister of Aviation Senator Hadi Sirika, the Federal Ministry of Aviation, and former Attorney-General of the Federation, Abubakar Malami.
Backstory
Nairametrics reported that in May 2024, during a ministerial briefing marking President Bola Tinubu’s first year in office, Aviation Minister Festus Keyamo announced the indefinite suspension of the Nigeria Air project.
He criticized the deal with Ethiopian Airlines as detrimental to Nigerian airlines, arguing that allowing a foreign entity to dominate the aviation industry would hinder local businesses’ growth.
Nigeria Air was initially unveiled in London in 2018 as a revival project of the defunct Nigeria Airways, which had collapsed due to corruption and mismanagement. Former Aviation Minister Hadi Sirika launched Nigeria Air in May 2023, just days before leaving office, claiming operations would commence soon. However, controversy arose when it was revealed that the aircraft unveiled during the launch belonged to Ethiopian Airlines, not Nigeria Air.
The former Aviation Minister Hadi Sirika is facing prosecution by the Economic and Financial Crimes Commission (EFCC) for alleged money laundering, contract fraud, and issues related to the Nigeria Air project.
The ownership structure of Nigeria Air includes Ethiopian Airlines (49%), the Federal Government (5%), SAHCO (15%), and other investors (31%). Despite the initial enthusiasm, the project faced criticism and was suspended in June 2023, with concerns about its sustainability and the potential $8.8 million in preliminary costs and $300 million in take-off expenses.
This current court ruling adds another layer of uncertainty to the future of Nigeria Air, as the project remains in limbo amid legal and financial challenges.
