Court Halts Sale of Air Nigeria to Ethiopian Airlines

The Federal High Court in Lagos has nullified the sale of Nigeria Air to Ethiopian Airlines. Justice Ambrose Lewis-Allagoa declared the transaction "invalid and legally ineffective," effectively halting the Federal Government’s plan to establish Nigeria Air as the national carrier.

This ruling was in response to a lawsuit filed by the Registered Trustees of the Airline Operators of Nigeria and five other aviation sector entities, who raised concerns about their exclusion from the project and the flawed bidding process.

The plaintiffs in the lawsuit included Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited.

On the opposing side were 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.

The court granted most of the plaintiffs’ requested remedies but denied their claim for N2 billion in damages. The decision puts the future of Nigeria Air on hold, pending further judicial review and potential changes to the project’s execution.

The controversy surrounding Nigeria Air began when it was unveiled in London in 2018 as a revival project of the defunct Nigeria Airways.

Former Aviation Minister Hadi Sirika launched Nigeria Air in May 2023, just days before leaving office, claiming operations would commence soon. However, it was later revealed that the aircraft unveiled during the launch belonged to Ethiopian Airlines, not Nigeria Air.

The ownership structure of Nigeria Air includes Ethiopian Airlines (49%), the Federal Government (5%), SAHCO (15%), and other investors (31%). Despite initial enthusiasm, the project faced criticism and was suspended in June 2023 due to concerns about its sustainability and the potential $8.8 million in preliminary costs and $300 million in take-off expenses.