A Federal High Court in Lagos has ordered a halt to the sale of Nigeria Air to Ethiopian Airlines, declaring the transaction null and void. The court’s decision follows a legal challenge from the Registered Trustees of the Airline Operators of Nigeria and other industry stakeholders.
On Monday, Justice Ambrose Lewis-Allagoa ruled in favor of the plaintiffs, which include the Registered Trustees of the Airline Operators of Nigeria, Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited. The defendants in the case are Nigeria Air Limited, Ethiopian Airlines, former Minister of Aviation Senator Hadi Sirika, the Federal Ministry of Aviation, and former Attorney-General of the Federation Abubakar Malami.
The plaintiffs had contested the sale of Nigeria Air’s shares to Ethiopian Airlines, arguing that the bidding process was irregular and unfairly favored the Ethiopian carrier, which is owned by the Ethiopian government. They claimed that the Federal Ministry of Transportation did not adhere to the request-for-proposal guidelines, excluding local airlines from the bidding.
The plaintiffs also alleged that key government officials facilitated a biased process, granting Ethiopian Airlines’ consortium exclusive privileges, including a 15-year tax break and dedicated terminal facilities in Lagos and Abuja. They argued that these concessions would undermine local airlines and damage the Nigerian economy.
Further concerns were raised about the qualifications of Tianaero Nigeria Limited, the transaction advisor, who was deemed inadequately experienced for the role. The plaintiffs contended that the entire process was tainted by politics and personal interests detrimental to Nigerian airlines and the public interest.
Justice Lewis-Allagoa granted all the plaintiffs’ reliefs except for a request for 2 billion naira in damages. The judgment also dismissed Ethiopian Airlines’ sole issue, affirming the plaintiffs’ claims about the flawed bidding and selection process.
The court’s decision means that the sale of Nigeria Air to Ethiopian Airlines is halted, and the comprehensive legal issues surrounding the transaction will be addressed further.
