Nigerian Court Stops Ethiopian Airlines Acquisition of Nigeria Air

The Nigerian Federal High Court in Lagos has stopped Ethiopian Airlines from acquiring Nigeria Air Ltd. This decision is a significant win for several Nigerian airlines that raised concerns about the sale.

The Nigerian Federal High Court, led by Justice Ambrose Lewis-Allagoa, declared the sale of Nigeria Air to Ethiopian Airlines invalid. The court ordered a halt to the creation of Nigeria Air, which was meant to be the national airline. Airline operators, including the Airline Operators of Nigeria and airlines like Azman Air Services and Air Peace, argued they were unfairly excluded from the bidding process. The court agreed with most of their claims but did not grant their request for ₦2 billion in damages.

The government announced Nigeria Air in July 2018 to boost the aviation industry. However, many people doubted the project. Concerns grew when it came to light that the planes shown during the launch actually belonged to Ethiopian Airlines. Currently, Ethiopian Airlines holds a 49% stake in Nigeria Air. Nigerian private investors own 46%, and the federal government has a 5% stake. This ownership structure raises worries about the impact on local airlines.

Moreover, former Aviation Minister Hadi Sirika is under investigation by the Economic and Financial Crimes Commission. Authorities are looking into possible financial misconduct related to the Nigeria Air project. This ruling and the investigations highlight the challenges in Nigeria’s aviation sector. They also emphasize the need for fair practices in airline operations.

Moreover, Ethiopian Airlines recently increased its flight prices significantly. Reportedly, the primary reason is the fluctuating market value of the US dollar. Customers argue that the price hikes are unjustified given the current market value of the USD and rising jet fuel costs.