Court Ends Nigeria Air Project

On August 5, the Federal High Court in Lagos declared Nigeria Air (NWB, Lagos) “null and void,” effectively terminating the federal government’s proposed joint venture with Ethiopian Airlines (ET, Addis Ababa International). The decision marks the end of a project that faced significant legal and operational challenges.

Judge Ambrose Lewis-Allagoa ruled in favor of the Airline Operators of Nigeria (AON) and its member airlines—Azman Air, Air Peace, MaxAir (Nigeria), United Nigeria, and TopBrass Aviation—who had challenged the venture on the grounds that it would adversely affect local privately-owned airlines. The court granted all requested reliefs except for NGN2 billion (USD1.2 million) in damages, which the plaintiffs had sought for alleged losses from exclusionary practices during the bidding process.

The plaintiffs had sought to nullify the bidding and selection process for Nigeria Air and cancel Ethiopian Airlines’ designation as the preferred bidder. Ethiopian Airlines, which had not responded immediately to the court’s ruling, was reportedly owed USD211,000 by Nigeria’s aviation ministry for breaches related to the project. The airline had already acquired three B737-8s for the venture.

The court’s decision aligns with recent statements from new aviation minister Festus Keyamo, who had previously indicated that the Nigeria Air project would remain suspended indefinitely. Keyamo described the initiative as lacking genuine Nigerian intent and as being more about Ethiopian Airlines leveraging the Nigerian brand.

Originally proposed by former President Muhammadu Buhari and former aviation minister Hadi Sirika, Nigeria Air was envisioned as a national carrier through a joint venture involving Ethiopian Airlines and Nigerian investors. However, the project faltered following a change in government. Keyamo’s subsequent orders to investigate the project led to the arrest of Sirika and his family members on corruption charges involving NGN2.7 billion (USD1.94 million).

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com