Nigeria No Longer Interested in Airline Partnership with Ethiopian Airlines

Ethiopian Airlines has announced that the Nigerian government is no longer interested in partnering to establish the proposed Nigeria Air project. This announcement was made by the Group Chief Executive Officer of Ethiopian Airlines, Mesfin Tasew, in Dubai, United Arab Emirates, according to the Ethiopian Tribune.

“The Nigerian government has lost interest in partnering with a foreign airline,” Tasew was quoted as saying.

This development comes nearly two months after the Federal Government indefinitely suspended the Nigeria Air project. On May 27, Festus Keyamo, the Minister of Aviation and Aerospace Development, announced the suspension during a ministerial briefing marking the first year of President Bola Tinubu’s administration.

Keyamo criticized the deal with Ethiopian Airlines, stating that the ownership structure of the suspended airline was not beneficial to Nigeria. He argued that it would be irresponsible for the Federal Government to allow a foreign entity to monopolize Nigeria’s aviation industry, thus compromising the growth of local businesses.

In 2023, the Ministry of Aviation, under the leadership of former Minister Hadi Sirika, unveiled Nigeria Air just three days before the end of former President Muhammadu Buhari’s administration. The ownership arrangement, which granted Ethiopian Airlines a 49 percent equity stake, raised concerns among stakeholders nationwide. The Federal Government held a 5 percent equity, while a consortium of three Nigerian investors owned 46 percent.

Reacting to the deal in June 2023, the House of Representatives urged the Federal Government to suspend the operations of Nigeria Air over allegations of fraud.

The suspension and the government’s withdrawal from the partnership indicate a significant shift in Nigeria’s approach to developing its aviation sector, with a focus now seemingly on fostering local businesses and ensuring a beneficial ownership structure.