Federal High Court Voids Nigeria Air Agreement with Ethiopian Airlines

Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos has declared the agreement between the federal government and Ethiopian Airlines for the management of Nigeria Air as null and void. This ruling invalidates the Air Transport Licence (ATL) previously issued to Nigeria Air by the Federal Government and the Nigerian Civil Aviation Authority (NCAA).

Background of the Case

The plaintiffs, comprising six Nigerian airlines—Azman Air Services, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, Topbrass Aviation Limited, and the Registered Trustees of the Airline Operator of Nigeria—challenged the agreement. The defendants in the case included Nigerian Air, Ethiopian Airlines, the Minister of Aviation, and the Attorney-General of the Federation.

In 2022, the then Minister of Aviation, Hadi Sirika, announced that Ethiopian Airlines had won the bid to manage Nigeria Air, with a proposed ownership structure that included a 49% stake for Ethiopian Airlines, 5% for the Federal Government, 15% for SAHCO, and 31% for other investors.

Plaintiffs’ Arguments

The plaintiffs argued that the bidding process was marred by politics and personal interests, designed to favor Ethiopian Airlines, a foreign entity, while excluding indigenous Nigerian airline operators. They contended that:

  1. Unlawful Exclusion: They were wrongfully excluded from the bidding process.
  2. Lack of Transparency: The process was not transparent and was structured to disadvantage Nigerian airlines.
  3. Economic Impact: The agreement was designed to eliminate competition, leading to predatory pricing and increased capital flight, which would negatively impact the Nigerian economy and consumers.

The plaintiffs also highlighted that Tianaero Nigeria Limited, which acted as the Transaction Adviser for the deal, was linked to the former aviation minister and was incorporated only in March of the previous year, raising questions about the integrity of the process.

Court’s Decision

Justice Lewis-Allagoa granted all the reliefs sought by the plaintiffs, except for their request for N2 billion in damages. The judge ordered:

  1. Nullification of the Agreement: The agreement between the federal government and Ethiopian Airlines was declared null and void.
  2. Revocation of the ATL: The Air Transport Licence issued to Nigeria Air was withdrawn.
  3. Fresh Bidding Process: A new, transparent bidding process involving the plaintiffs, as indigenous airline operators, was mandated.

However, the court denied the plaintiffs’ request for N2 billion in damages, stating that they had not demonstrated any damages that would justify such compensation.

Implications

This ruling signifies a significant setback for the Nigeria Air project, which aimed to revitalize the country’s aviation sector with foreign investment and expertise. The decision underscores the necessity for transparency and fairness in governmental agreements and bidding processes, especially those involving critical national assets and industries.

The plaintiffs have called for a transparent and inclusive bidding process, which they believe will ensure that indigenous airlines are not unfairly disadvantaged and that the interests of the Nigerian state and its citizens are adequately protected.

Likes:
0 0
Views:
102
Article Categories:
Business

Comments are closed.