A sharp division has emerged among top aviation professionals following a proposal to merge Arik Air and Aero Contractors, the two indigenous airlines currently under the receivership of the Asset Management Corporation of Nigeria (AMCON). The merger proposal forms part of a revised national aviation framework being considered by the Federal Government.
The debate was triggered by former Commandant of the Murtala Muhammed International Airport (MMIA), Lagos, Group Capt. John Ojikutu (rtd), who urged the Minister of Aviation and Aerospace Development, Festus Keyamo, to abandon the pursuit of a national carrier and instead adopt a dual-flag-carrier model for Nigeria.
Ojikutu recommended that Arik Air and Aero Contractors be consolidated into a single regional and continental airline, while Air Peace should serve as Nigeria’s intercontinental flag carrier. According to him, such a merger would produce a stronger, more viable operator capable of competing effectively across Africa—provided a comprehensive economic audit of both airlines is conducted.
He proposed that ownership of the merged airline should be structured through public listing, with credible local and foreign investors allotted 25% equity, the Nigerian public 30%, and government participation capped at 10%. The remaining 35% would go to the original airline owners.
Ojikutu also advised limiting foreign airlines to landing in either Lagos or Abuja, after which they would interline with Nigerian carriers to distribute transit passengers across local destinations.
However, the proposal has drawn criticism from industry stakeholders. Capt. Mohammed Badamasi, a former pilot with the defunct Nigeria Airways, dismissed the merger idea as “unrealistic and commercially unsound.” He argued that airlines should instead develop strong, attractive business models capable of drawing investment on their own merit. Badamasi also questioned the capacity of Arik and Aero to compete internationally, noting the significant operational challenges already faced by Nigerian carriers such as Air Peace on global routes.
Meanwhile, concerns are rising over new tax policies expected to take effect under the Nigeria Tax Act (2025). The reforms will remove long-standing exemptions on import duties and Value Added Tax (VAT) for commercial aircraft, engines, spare parts, and airline tickets.
The Chairman of the Airline Operators of Nigeria (AON) and CEO of Air Peace, Allen Onyema, warned that the new tax regime could cripple local airlines if implemented in January 2026 as planned. Speaking in Abuja at an event marking 100 years of aviation in Nigeria, Onyema disclosed that operators and the Aviation Minister would soon meet with members of the National Assembly to discuss the implications of the tax reforms.
“If it is allowed to stand, all of us will crumble,” Onyema said. However, he expressed confidence that President Bola Tinubu would intervene, urging the president and the minister to continue to listen to the concerns of industry operators.
. The merger proposal forms part of a revised national aviation framework being considered by the Federal Government.){kind=link}