Ethiopian Airlines has confirmed that the Nigerian government is no longer pursuing the proposed Nigeria Air joint venture. This revelation came from the Group’s CEO, Mesfin Tasew, during a media briefing in Dubai, according to a report by Ethiopian Tribune.
This update comes shortly after the Federal Government of Nigeria suspended the Nigeria Air project indefinitely.
“The Nigerian government has lost interest in partnering with a foreign airline,” Tasew announced, confirming the end of the Nigeria Air project initiated by the past administration.
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The Nigeria Air Backstory
In May 2024, Festus Keyamo, the Minister of Aviation and Aerospace Development, announced the suspension of the Nigeria Air project during a ministerial briefing commemorating the first year of President Bola Tinubu’s administration. Keyamo criticized the partnership with Ethiopian Airlines, arguing it would be detrimental to Nigerian airlines and risk creating a monopoly by a foreign entity in Nigeria’s aviation industry.
The Nigeria Air project was initially launched in May 2023 with high hopes under the stewardship of then Minister of Aviation, Hadi Sirika. The launch, which occurred just before President Muhammadu Buhari’s administration ended, was meant to revitalize the national carrier and boost the country’s aviation sector. However, optimism quickly faded as concerns emerged about the plane used for the launch and the specifics of the deal.
Controversial Deal Structure
Sirika had outlined that Ethiopian Airlines would hold a 49 percent equity stake in Nigeria Air, with the Nigerian government retaining only 5 percent. The remaining 46 percent was to be owned by a consortium of three Nigerian investors. This allocation raised eyebrows, with many critics arguing that the deal heavily favored Ethiopian Airlines, potentially compromising the benefits to Nigeria.
Investigative Revelations and Legislative Scrutiny
The launch of the Nigeria Air came with a lot of concerns about transparency, as it was hurriedly executed. Investigative journalist David Hundeyin’s exposé intensified the controversy, revealing potential fraudulent elements and a lack of transparency in the project.
His findings highlighted irregularities that increased public skepticism and prompted the House of Representatives to intervene. In June 2023, the House called for the suspension of Nigeria Air operations, labeling the deal a fraud and demanding a thorough review.
Following the legislative intervention, the government, through Minister Keyamo, suspended the Nigeria Air project in September 2023. Keyamo reiterated the government’s commitment to establishing a national carrier under terms beneficial to Nigeria. He emphasized that the suspended project was misrepresented as a Nigerian initiative when it was largely driven by Ethiopian Airlines.
The Aviation Minister was understood to be acting based on broader public and stakeholder sentiment that a true national carrier should belong to Nigeria in both ownership and operational benefits.
He criticized the initial ownership structure, stating, “Nigeria Air must be indigenous, it must be wholly Nigerian, and must be for the full benefits of Nigeria. Not that 50 percent of the profit is for another country.”
Thus, The Nigerian government’s decision to terminate the partnership with Ethiopian Airlines is seen as part of its commitment to creating a national carrier that aligns with national interests and promotes local growth in the aviation sector. The suspension of the Nigeria Air project is seen as a way to ensure that future ventures are transparent, equitable, and genuinely beneficial to Nigeria’s economy and its people.
Former Aviation Minister Hadi Sirika is currently being prosecuted by the Economic and Financial Crimes Commission (EFCC) on charges of alleged money laundering, contract fraud within the ministry, and issues related to his handling of the Nigeria Air project.