A temporary halt has been placed on the sale of Nigeria Air to Ethiopian Airlines by a Federal High Court in Lagos.
The court has deemed the sale of Nigeria Air shares to Ethiopian Airlines null and void after thoroughly examining the issues presented in the case.
On Monday, Justice Ambrose Lewis-Allagoa ruled to pause the Federal Government’s initiative to create a national carrier, Nigeria Air.
The verdict favored the Registered Trustees of the Airline Operators of Nigeria and five other stakeholders in the aviation industry.
Justice Lewis-Allagoa granted all the requested reliefs to the plaintiffs, with the exception of the plea for N2 billion in damages.
The plaintiffs involved in the lawsuit are the Registered Trustees of the Airline Operators of Nigeria, Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited.
The defendants named in the case consist of Nigeria Air Limited, Ethiopian Airlines, former Minister of Aviation Senator Hadi Sirika, the Federal Ministry of Aviation, and former Attorney-General of the Federation Abubakar Malami.
The Originating Summons filed by the plaintiffs contested the sale and transfer of Nigeria Air shares.
They argued that the bidding process for Nigeria Air, overseen by the Nigerian government, was riddled with irregularities that favored Ethiopian Airlines, a foreign entity wholly owned by the Ethiopian government.
The plaintiffs claimed that the representatives from the Federal Ministry of Transportation, who wield significant influence in Nigeria Air, did not adhere to the request for proposal guidelines, resulting in the exclusion of local airlines from the bidding process.
They further alleged that key government officials facilitated a biased bidding process, providing the 2nd defendant and its consortium with unprecedented advantages such as a 15-year tax exemption, exclusive terminal buildings in Lagos and Abuja, and substantial financial aid, which they believed would undermine local airlines and the Nigerian economy.
The plaintiffs contended that Ethiopian Airlines, along with its consortium, was improperly favored as the sole bidder and winner, deviating from the principles of fair competition.
Moreover, they criticized the business plan put forward by Ethiopian Airlines for potentially hindering the operations of local airlines, posing a threat to the Nigerian aviation industry.
Additionally, the plaintiffs raised concerns about the qualifications and experience of Tianaero Nigeria Limited, the transaction advisor for the deal, questioning the legitimacy of the bidding process.
They argued that the entire process was tainted by political and personal motivations aimed at achieving outcomes detrimental to Nigerian airlines and the public interest at large.
The plaintiffs sought the annulment of the bidding and selection process for the Nigeria Air project, as well as the approval and selection of Ethiopian Airlines by the defendants.
In his ruling on Monday, Justice Lewis-Allagoa dismissed the issues raised solely by the 2nd defendant, Ethiopian Airlines.
He stated, “All the reliefs sought by the plaintiffs are granted except for relief number eight. An award made in this regard in the instant case, the plaintiffs requested damages of N2 billion for the injury suffered by the plaintiffs due to the wrongful exclusion, wrongful actions, unlawful bidding and selection processes, and the misrepresentation of the plaintiffs’ bid for the Nigeria Air project.
“Relief number eight was denied and cannot be granted.”