Nigeria Halts Nigeria Air Project, Withdraws from Ethiopian Airlines Partnership

In a surprising turn of events, Ethiopian Airlines recently announced that the Nigerian government has withdrawn from the Nigeria Air project.

Mesfin Tasew, the Group Chief Executive Officer of Ethiopian Airlines, made this disclosure during an event in Dubai, UAE, as reported by the Ethiopian Tribune.

Tasew explained that the Nigerian government had lost interest in partnering with an international airline, leading to the indefinite suspension of the Nigeria Air project.

This development followed a decision by the Federal Government, which was announced by Festus Keyamo, the Minister of Aviation and Aerospace Development, during a briefing marking President Bola Tinubu’s first year in office on May 27.

Keyamo highlighted significant issues with the ownership structure of the partnership with Ethiopian Airlines. He argued that the arrangement was not beneficial for Nigeria, expressing concerns that a foreign company dominating Nigeria’s aviation sector could stifle the growth of local businesses. According to Keyamo, the proposed partnership did not align with Nigeria’s strategic interests in developing its domestic aviation industry.

Nigeria Air was initially launched in 2023 by the Ministry of Aviation under the former Minister Hadi Sirika, just days before the end of President Muhammadu Buhari’s administration. However, the project faced immediate criticism due to Ethiopian Airlines holding a 49 percent stake. This significant foreign ownership raised alarms among Nigerian stakeholders, who were concerned about the potential for foreign dominance in the aviation sector. The proposed ownership structure included three Nigerian investors holding a combined 46 percent stake, with the Federal Government retaining the remaining 5 percent.

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The House of Representatives called for the Federal Government to halt Nigeria Air’s operations in June 2023 amid fraud allegations. This move underscored the ongoing concerns about foreign influence and the need to prioritize the growth of Nigeria’s domestic aviation industry.

The decision to step back from the Nigeria Air project and suspend Nigeria Air reflects a broader strategy to ensure that Nigeria’s aviation sector remains under significant local control. This latest move underscores the government’s commitment to supporting the growth of Nigeria’s domestic aviation industry and reducing reliance on foreign partners. As the country continues to navigate these complex issues, the future of Nigeria’s aviation sector remains a topic of significant interest and debate among industry stakeholders.