Nigeria’s Ambitious National Carrier Plan Hits Turbulence as Court Throws Out Sale to Ethiopian Airlines

The Nigerian government’s plan to establish a new national carrier, Nigeria Air, has been dealt a significant blow after the Federal High Court in Lagos declared null and void the sale of the airline to Ethiopian Airlines. The court’s decision effectively puts the entire project on hold, dealing a major setback to the Nigerian government’s aviation ambitions.

In its judgment, the court granted the reliefs sought by the plaintiffs, a group of six airlines and the Registered Trustees of the Airline Operators of Nigeria, except for the relief seeking damages for their wrongful exclusion and the unlawful bidding and selection processes. The plaintiffs had asked the court to set aside the entire bidding process for the Nigeria Air project and block the selection of Ethiopian Airlines as the preferred bidder.

Justice Ambrose Lewis-Allagoa, who delivered the judgment, ordered that the proposed establishment of Nigeria Air should not be carried out. The decision follows a lawsuit filed by the plaintiffs against the first to fourth defendants, including Nigeria Air Limited, Ethiopian Airlines, Senator Hadi Sirika, and the Attorney-General of the Federation.

The Nigerian government had awarded the contract to establish Nigeria Air to Ethiopian Airlines in 2020, a move that was met with widespread opposition from local airlines. The establishment of a new national carrier was part of the government’s efforts to boost the aviation industry and increase competition.

However, the court’s decision has raised concerns about the future of the Nigeria Air project and the impact it may have on the aviation industry in Nigeria. The decision has been welcomed by local airlines, who see it as a victory for their efforts to stop the sale of the airline to Ethiopian Airlines.

The Nigerian government has not commented on the court’s decision, but sources close to the matter suggest that the government may appeal the decision. However, for now, the future of the Nigeria Air project remains uncertain, leaving investors and stakeholders wondering what lies ahead.