AGS NEWS – A Federal High Court in Lagos has halted the sale of Nigeria Air to Ethiopian Airlines. The court nullified the sale of Nigeria Air shares to Ethiopian Airlines, ruling in favor of the plaintiffs in the case.

Justice Ambrose Lewis-Allagoa on Monday ordered the Federal Government to stop plans to establish Nigeria Air.

This judgment supported the Registered Trustees of the Airline Operators of Nigeria and five other aviation industry stakeholders.

The court granted all the reliefs sought by the plaintiffs except for their request for N2 billion in damages.

The plaintiffs 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, former Minister of Aviation Senator Hadi Sirika, the Federal Ministry of Aviation, and former Attorney-General of the Federation Abubakar Malami.

The plaintiffs challenged the sale and transfer of Nigeria Air shares, claiming that the bidding process was irregular and favored Ethiopian Airlines, a foreign entity.

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They argued that representatives from the Federal Ministry of Transportation, who control Nigeria Air, did not follow proper proposal guidelines, excluding local airlines from the bidding process.

The plaintiffs accused key government officials of facilitating a biased process that granted Ethiopian Airlines unprecedented privileges, including a 15-year tax moratorium and exclusive terminal buildings in Lagos and Abuja.

They argued that these benefits would undermine local airlines and the Nigerian economy.

The plaintiffs also raised concerns about Tianaero Nigeria Limited, the transaction advisor for the deal, citing its lack of qualifications and experience.

They claimed that the process was influenced by politics and personal interests, detrimental to Nigerian airlines and public interest.

In the judgment, Justice Lewis-Allagoa rejected the issues raised by Ethiopian Airlines and granted all the reliefs sought by the plaintiffs, except for the N2 billion damages.

The court’s decision effectively nullifies the bidding and selection process for Nigeria Air and the approval of Ethiopian Airlines as the preferred bidder.