Justice Ambrose Lewis Allagoa of the Federal High Court, Ikoyi, Lagos, yesterday nullified the sale of Nigeria Air to Ethiopian Airlines by the President Muhammadu Buhari administration.
The judge took the position while handing down his verdict on the suit instituted by the Registered Trustees of the Airline Operators of Nigeria and five other aviation industry stakeholders against Nigeria Air. Justice Lewis-Allagoa equally directed the Federal Government of Nigeria (FGN) to halt plans to establish a national carrier, Nigeria Air.
Other plaintiffs in the legal action are Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited, while the defendants are Nigeria Air Limited, Ethiopian Airlines, the former Aviation Minister, Senator Hadi Sirika, the Federal Ministry of Aviation, and Abubakar Malami, the former Attorney-General of the Federation and Justice Minister.
In their originating summons, the plaintiffs had challenged the sale and transfer of shares of Nigeria Air. The plaintiff had also contended that the bidding process for Nigeria Air, facilitated by the FGN, was fraught with irregularities and favoured Ethiopian Airlines, a foreign entity wholly owned by the Ethiopian Government.
They equally maintained that the Federal Ministry of Transportation representatives, who hold significant control in Nigeria Air, failed to comply with the request for proposal guidelines, leading to the exclusion of local airlines from the bidding process, just as they added that the third and fourth defendants, who are key government officials, facilitated a skewed bidding process, granting the second defendant and its consortium unprecedented privileges.
The unprecedented challenges, the plaintiffs said, include a 15-year tax moratorium, exclusive terminal buildings in Lagos and Abuja, and significant financial support, which they argue will undermine local airlines and the Nigerian economy.
The plaintiffs further argued that the consortium led by Ethiopian Airlines was discreetly allowed to be the sole bidder and winner, contrary to the principles of free and fair competition.
They insisted that the second defendant’s business plan also proposed strategies that could stultify the operations of local airlines, further jeopardising the Nigerian aviation industry.