The Federal High Court in Lagos has declared the sale of Nigerian Air Ltd to Ethiopian Airlines null and void. In his judgment, Justice Ambrose Lewis-Allagoa ordered that the proposed establishment of a national carrier, Nigeria Air, by the Federal Government, should not proceed.
The judge granted the reliefs sought by the plaintiffs, the Registered Trustees of the Airline Operators of Nigeria, and five others in the aviation industry, except for the relief requesting N2 billion in damages for the injury suffered by the plaintiffs due to their wrongful exclusion and the unlawful bidding and selection processes for the Nigeria Air project.
The six plaintiffs in the suit are the Registered Trustees of the Airline Operators, Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited. They filed the suit against Nigeria Air Limited, Ethiopian Airlines, former Minister of Aviation Senator Hadi Sirika, and the Attorney-General of the Federation.
The plaintiffs asked the court to set aside the entire bidding and selection process for the Nigeria Air project, as well as the approval and selection of Ethiopian Airlines by the former Minister of Aviation, Hadi Sirika, and former Attorney General of the Federation, Abubakar Malami.
In the originating summons filed in November 2022, the plaintiffs challenged the sale and transfer of shares of Nigeria Air, claiming the bidding process was fraught with irregularities and favored Ethiopian Airlines, a foreign entity wholly owned by the Ethiopian Government. They argued that representatives of the Federal Ministry of Transportation failed to comply with the request for proposal guidelines, leading to the exclusion of local airlines from the bidding process.
The plaintiffs also accused the 3rd and 4th defendants of facilitating a skewed bidding process, granting Ethiopian Airlines and its consortium unprecedented privileges, including a 15-year tax moratorium, exclusive terminal buildings in Lagos and Abuja, and significant financial support. They argued that these advantages would undermine local airlines and the Nigerian economy.
Furthermore, the plaintiffs disclosed that the transaction advisor for the deal was inadequately qualified, raising concerns about the legitimacy of the bidding process. They asserted that the entire process was marred by politics and personal interests, detrimental to Nigerian airlines and the broader public interest.
In his judgment, Justice Lewis-Allagoa dismissed the sole issue raised by Ethiopian Airlines and granted the plaintiffs’ reliefs, except for the request for N2 billion in damages. The granted reliefs include:
A declaration that the sale of shares and operations of Nigeria Air Ltd violated several Nigerian laws and regulations, including the Companies and Allied Matters Act (CAMA) 2020 and the Nigerian Investment Promotion Commission (NIPC) Act.
A declaration that the administrative actions and decisions of the 3rd and 4th defendants in the sale of shares to Ethiopian Airlines are invalid, void, and of no effect.
A declaration that Ethiopian Airlines was incompetent to bid for shares in Nigeria Air Ltd.
An order setting aside the entire bidding and selection process for the Nigeria Air project.
An order for a fresh, transparent bidding process involving the Indigenous Airline Operators in Nigeria.
An order directing the immediate revocation and cancellation of the Air Transport License (ATL) issued to Nigeria Air Ltd by the Nigerian Civil Aviation Authority (NCAA).
The request for N2 billion in damages for the plaintiffs was not granted.
