Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos has declared the agreement between the federal government and Ethiopian Airlines, which handed over the management of the proposed Nigeria Air to the foreign airline, null and void.

In his judgment, Justice Lewis-Allagoa also ordered the withdrawal of the Air Transport Licence (ATL) already issued to Nigeria Air by the Federal Government and the Nigerian Civil Aviation Authority (NCAA).

The judge directed an immediate, fresh, and transparent bidding process involving the plaintiffs, who are indigenous airline operators in Nigeria. The plaintiffs in this case include Azman Air Services, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, Topbrass Aviation Limited, and the Registered Trustees of the Airline Operator of Nigeria. The defendants are Nigerian Air, Ethiopian Airlines, the Minister of Aviation, and the Attorney-General of the Federation.

In 2022, the then Minister of Aviation, Hadi Sirika, announced that Ethiopian Airlines had won the bid to manage Nigeria Air. The proposed structure allocated a 49% stake to Ethiopian Airlines, 5% to the Federal Government, 15% to SAHCO, and 31% to other investors. However, the plaintiffs argued that Tianaero Nigeria Limited, which served as the Transaction Adviser for the deal between Nigeria and Ethiopian Airlines, was linked to the former aviation minister and was only incorporated in March of the previous year.

The plaintiffs sought an order directing a new, transparent bidding process involving indigenous Nigerian airline operators, the immediate revocation of the ATL issued to Nigeria Air, and a perpetual injunction preventing the continuation or transfer of Nigeria Air’s operations by the third and fourth defendants to Ethiopian Airlines.

In an affidavit, the plaintiffs alleged that they, along with other private investors, attempted to participate in the bidding process but were obstructed by political and personal interests. They claimed that Ethiopian Airlines, a wholly-owned Ethiopian government entity, was discreetly allowed to be the sole bidder and winner, leading to a potentially anti-competitive outcome detrimental to domestic airlines, Nigerian consumers, and the economy.

Justice Lewis-Allagoa granted all the reliefs sought by the plaintiffs except for the request for N2 billion in damages, ruling that the airlines had not suffered any damages warranting compensation. The court’s decision underscores the need for transparency and fairness in the selection process for managing national assets like Nigeria Air.