The Federal Government has reiterated that the controversial Nigeria Air project remains suspended, as Minister of Aviation and Aerospace Development Festus Keyamo awaits President Bola Tinubu’s decision.
Speaking on Monday, Tunde Moshood, Special Assistant to the Minister, reaffirmed the government’s position in response to recent comments from Ethiopian Airlines. “They can say whatever they like, but as far as we are concerned, the project is under suspension, and the Honourable Minister is awaiting Mr President’s verdict,” Moshood stated.
Ethiopian Airlines Group CEO, Mesfin Tasew, recently told the Ethiopian Tribune that the Nigerian government had lost interest in partnering with a foreign airline. This announcement follows the Federal Government’s reaffirmation of the indefinite suspension of the Nigeria Air project two months ago.
Keyamo has previously criticized the deal with Ethiopian Airlines, calling it unfair to Nigerian airlines. He argued that allowing a foreign entity to dominate Nigeria’s aviation industry would compromise the growth of local businesses.
The Nigeria Air project, announced by former President Muhammadu Buhari’s administration on July 18, 2018, aimed to revive the defunct Nigerian Airways. However, the project was met with concerns over its ownership structure, which gave Ethiopian Airlines a 49% equity stake, the Federal Government 5%, and a consortium of Nigerian investors 46%.
In August 2023, Keyamo announced the suspension of the project, stressing his responsibility to provide an honest assessment to the government and Nigerians. The project, unveiled just days before the end of Buhari’s administration, faced scrutiny over its relevance and sustainability, with projected costs of $8.8 million in preliminary expenses and $300 million in take-off costs.
Ethiopian Airlines won the bid to manage Nigeria Air in 2022, agreeing to a structure where they would hold a 49% stake, the Federal Government 5%, SAHCOL 15%, and other investors 31%. However, in June 2023, the House of Representatives called for the project’s suspension, describing it as fraudulent.
In a recent interview, Tasew indicated that Ethiopian Airlines would respect the Nigerian government’s decision on the suspended national carrier project, despite initial reluctance to participate. He emphasized that the setback would not hinder Ethiopian Airlines’ multi-hub strategy in Africa, where the carrier continues to develop joint ventures and support airlines in countries like the Democratic Republic of Congo and Equatorial Guinea.
Tasew highlighted the success of ASKY, in which Ethiopian holds a 40% share, and Malawi Airlines, Ethiopia’s first JV. He also noted the ongoing development of Zambia Airways, where Ethiopian Airlines holds a 45% share.
