Ethiopian Airlines announces Federal Government’s withdrawal from Sirika’s Nigeria Air joint venture project
Ethiopian Airlines has announced that the Nigerian government is no longer interested in establishing the proposed Nigeria Air joint venture.
This confirmation came from the Group’s Chief Executive Officer, Mesfin Tasew, in Dubai over the weekend.
The announcement was reported by Ethiopian Tribune, a major Ethiopian media outlet.
“The Nigerian government has lost interest in partnering with a foreign airline,” Tasew said.
This announcement by Ethiopian Airlines comes barely two months after the Federal Government indefinitely suspended the Nigeria Air project.
In May 2024, during the ministerial briefing marking the first year of President Bola Tinubu’s administration, Minister of Aviation and Aerospace Development, Festus Keyamo, announced the indefinite suspension of the Nigeria Air project.
Keyamo had previously criticized the deal with Ethiopian Airlines as unfair to Nigerian airlines, stating it would be irresponsible for the Federal Government to allow a foreign entity to monopolize Nigeria’s aviation industry, thereby compromising the growth of local businesses.
What you should know
The former President Muhammadu Buhari’s administration announced the Nigeria Air project on July 18, 2018, aiming to revive the defunct Nigerian Airways
However, two months later, it was suspended due to concerns about its relevance and sustainability. The airline was projected to incur $8.8 million in preliminary costs and $300 million in take-off costs.
In 2022, Ethiopian Airlines won the bid to manage Nigeria Air, agreeing to a structure where they would hold a 49% stake, the Federal Government 5%, SAHCO 15%, and other investors 31%.
In May 2023, just before the end of the previous administration, Aviation Minister Hadi Sirika officially launched Nigeria Air.
By June 2023, the House of Representatives criticized the launch process, calling it fraudulent, and the House Committee on Aviation passed a resolution asking the federal government to suspend Nigeria Air’s operations.
Festus Keyamo, the current Minister of Aviation and Aerospace Development, criticized the deal with Ethiopian Airlines, stating it was not beneficial for the country in the long run.
In May 2024, Keyamo announced the indefinite suspension of the Nigeria Air project during a briefing marking President Bola Tinubu’s first year in office.
Currently, former Aviation Minister Hadi Sirika is being prosecuted by the Economic and Financial Crimes Commission (EFCC) for alleged money laundering, contract fraud in the ministry, and issues related to Nigeria Air.
The controversies surrounding Nigeria Air have highlighted significant challenges and discrepancies in the nation’s aviation sector, prompting calls for greater transparency and accountability.
