A Lagos Federal High Court yesterday (Monday, August 5) nullified the sale of Nigeria Air to Ethiopian Airlines.
The deal brokered by former Aviation Minister Hadi Sirika, during the administration of ex-President Muhammadu Buhari, was declared null and void by Justice Ambrose Lewis-Allagoa, who presided over the case.
The court’s decision came as it addressed the issues raised in a lawsuit filed by the Registered Trustees of the Airline Operators of Nigeria (AON), and five other aviation industry stakeholders against Nigeria Air.
Along with nullifying the sale, Justice Lewis-Allagoa ordered the Federal Government to cease plans to establish a national carrier under the name Nigeria Air.
The plaintiffs in the suit include 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 are Nigeria Air Limited, Ethiopian Airlines, Hadi Sirika, the Federal Ministry of Aviation, and Abubakar Malami, the former Attorney-General of the Federation and Justice Minister.
In their originating summons, the plaintiffs challenged the sale and transfer of shares of Nigeria Air.
They claimed that the bidding process facilitated by the Federal Government was riddled with irregularities and favored Ethiopian Airlines, a foreign entity wholly owned by the Ethiopian Government. The plaintiffs argued that representatives from the Federal Ministry of Transportation, who held significant control in Nigeria Air, failed to comply with the request for proposal guidelines, resulting in the exclusion of local airlines from the bidding process.
Furthermore, the plaintiffs accused key government officials, specifically the third and fourth defendants, of facilitating a biased bidding process that granted the second defendant and its consortium unprecedented privileges.
These included a 15-year tax moratorium, exclusive terminal buildings in Lagos and Abuja, and substantial financial support, which the plaintiffs argued would undermine local airlines and the Nigerian economy.
The plaintiffs contended that the consortium led by Ethiopian Airlines was covertly allowed to be the sole bidder and winner, violating the principles of free and fair competition.
They argued that the second defendant’s business plan included strategies that could stifle the operations of local airlines, further endangering the Nigerian aviation industry.
Additionally, the plaintiffs alleged that Tianaero Nigeria Limited, the transaction advisor for the deal, was inadequately qualified and lacked the necessary experience, raising further concerns about the legitimacy of the bidding process.
The plaintiffs asserted that the entire process was tainted by politics and personal interests, aiming for an outcome detrimental to Nigerian airlines and the public interest.
They requested the court to nullify 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 judgment, Justice Lewis-Allagoa dismissed the sole issues raised by the second defendant (Ethiopian Airlines) and ruled in favor of the plaintiffs, granting all their reliefs except for one.
He stated, “All the reliefs sought by the plaintiffs are granted except for relief number eight.”
Regarding the plaintiffs’ request for damages, he noted: “The plaintiffs requested damages of N2 billion for the injury suffered and still suffering as a result of the wrongful exclusion, wrongful action, unlawful bidding and selection processes, and their wrongful projection of the plaintiffs as not having properly, rightly, and timely bid for the Nigeria Air project. Relief number eight failed and cannot be granted.”
