Ethiopian Airlines has announced that the Nigerian government is no longer interested in a partnership aimed at establishing the proposed Nigeria Air project. The Airlines’ Group Chief Executive Officer, Mesfin Tasew, made this announcement in Dubai, United Arab Emirates, according to Ethiopian Tribune.
“The Nigerian government has lost interest in partnering with a foreign airline,” Tasew was quoted as saying. This announcement comes barely two months after the Federal Government indefinitely suspended the Nigeria Air project.
Recall that the Minister of Aviation and Aerospace Development, Festus Keyamo, had on May 27, announced the indefinite suspension of the Nigeria Air project during the ministerial briefing marking the first year of President Bola Tinubu’s administration. Keyamo criticized the deal with Ethiopian Airlines, saying that the ownership structure of the suspended airline is not beneficial to the country. The minister added that it would be irresponsible for the Federal Government to allow a foreign entity to monopolize Nigeria’s aviation industry, thereby compromising the growth of local businesses.
In 2023, the Ministry of Aviation, under former Minister Hadi Sirika, unveiled Nigeria Air three days before the end of former President Muhammadu Buhari’s administration. The Nigeria Air project elicited concerns among stakeholders nationwide over the ownership arrangement which gave Ethiopian Airlines a 49 percent equity stake. The Federal Government had a 5 percent equity, while a consortium of three Nigerian investors had 46 percent.
Reacting to the deal in June 2023, the House of Representatives asked the Federal Government to suspend the operations of Nigeria Air over allegations of fraud. The decision to suspend the project was based on concerns regarding the ownership structure and potential dominance by Ethiopian Airlines, which was seen as not being in the best interest of Nigeria’s aviation sector.
The Nigeria Air project was initially seen as a significant step towards revamping the country’s aviation industry. It aimed to create a national carrier that would boost the local economy, create jobs, and improve air travel connectivity within Nigeria and internationally. However, the choice to involve Ethiopian Airlines, one of Africa’s largest and most successful carriers, led to apprehensions about the implications for local airlines and businesses.
Critics argued that allowing Ethiopian Airlines to hold a near-majority stake in Nigeria Air could result in a scenario where the foreign airline had excessive control over the operations and strategic decisions of the new national carrier. This control could potentially stifle the growth of local airlines and undermine efforts to develop a robust and competitive domestic aviation market.
The initial announcement of Nigeria Air was met with mixed reactions. Some stakeholders were optimistic about the potential benefits of having a well-established partner like Ethiopian Airlines involved in the project. They believed that the expertise and resources of Ethiopian Airlines could help ensure the success of Nigeria Air and improve the overall quality of air travel services in Nigeria.
However, others were skeptical and voiced concerns about the long-term implications of such a partnership. The debate over the ownership structure and the role of Ethiopian Airlines in Nigeria Air highlighted the broader challenges facing Nigeria’s aviation industry, including issues related to regulation, competition, and the need for a supportive environment for local businesses to thrive.
The indefinite suspension of the Nigeria Air project has left many questions unanswered about the future of Nigeria’s national carrier initiative. While the government’s decision to halt the project was seen as a necessary step to address the concerns raised, it also underscored the complexities involved in establishing a national airline in a competitive and dynamic industry.
As the Nigerian government continues to reassess its strategy for the aviation sector, stakeholders will be watching closely to see how the situation evolves. The priority will be to find a balanced approach that supports the growth of local businesses while ensuring that the country can benefit from partnerships with established international players. The goal remains to create a national carrier that serves the interests of Nigeria and contributes to the development of its aviation industry.
