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First with the News

Nigeria Air Project Takes Nosedive As Government Ends Partnership Talks With Ethiopian Airlines

July 1, 2024
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Nigeria Air Project Takes Nosedive As Government Ends Partnership Talks With Ethiopian Airlines
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By John Ikani

Ethiopian Airlines has confirmed that discussions to establish a joint venture airline, Nigeria Air, with the Nigerian government have fallen through.

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Mesfin Tasew, Ethiopian Airlines’ CEO, announced this development in Dubai over the weekend, according to Ethiopian Tribune.

“Nigeria has opted out of partnering with a foreign airline for this project,” Tasew was quoted saying.

The development comes just two months after the Nigerian government placed the Nigeria Air project on indefinite hold.

In May 2024, during a briefing marking President Bola Tinubu’s first year in office, Aviation Minister Festus Keyamo announced the suspension.

Previously, Keyamo had voiced concerns about the proposed ownership structure, arguing it wouldn’t benefit Nigeria.

He expressed anxieties about a foreign entity potentially dominating the nation’s aviation industry and stifling domestic airline growth.

The unveiling of Nigeria Air in May 2023, just days before the end of former President Muhammadu Buhari’s administration, had already sparked controversy.

The proposed ownership breakdown gave Ethiopian Airlines a significant 49% stake, while the Nigerian government held only 5%. The remaining 46% was allocated to a consortium of Nigerian investors.

These ownership percentages drew criticism from stakeholders across Nigeria. In June 2023, the House of Representatives even called for the project’s suspension, labelling it fraudulent.

Tags: Ethiopian AirlinesFestus KeyamoMesfin TasewNigeria Air
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