Keyamo reveals that Nigeria Air deal with Ethiopian Airliner contained suspicious deals

AVIATION minister Festus Keyamo has revealed that Nigeria's federal government is reviewing a contract signed between the former administration of President Muhammadu Buhari and Ethiopian Airlines regarding the launch of a national carrier.

In April this year, the then aviation minister Hadi Sirika, assured Nigerians that the national carrier  Nigeria Air would commence operation before May 29 when President Buhari would leave office. Just days before the end of the Buhari administration, an aircraft painted in the colours of Nigeria Air was presented is Abuja as evidence that the airline was up and running.

However, it later transpired that the while process was a ruse with the aircraft actually being hired from Ethiopian Airlines and has since been returned. Nigeria Air was launched amid a lot of fanfare in 2018 at the Farnborough Air Show in the UK but the project has been dogged by controversies since it was launched, preventing its take-off.

Yesterday, Mr Keyamo revealed that there were several suspicious deals associated with the controversial Nigeria Air agreement with Ethiopian Airlines. He added that details of an investigation have been presented to President Bola Tinubu, showing that there were anti-competitive deals inherent in the agreement.

Among other things, Mr Keyamo faulted a five-year tax waiver granted to Ethiopian Airlines, noting that this would not encourage fair competition in the aviation sector. He also lamented the fact that the contract sought to cede the appointment of employees at all levels to the Ethiopian investors.

Mr Keyamo said: “I cannot pre-empt my president but the reports have been forwarded to him. It would be irresponsible to close my eyes to all these concerns, so because of that, we suspended Nigeria Air.

“We have looked at all the issues and the report is before the president. That’s why when they tell you we want to crash the price, it’s a lie. It’s robbing Peter to pay Paul. The only thing that brings down prices in the commercial world is fair competition.”

In August, Mr Keyamo suspended the controversial Nigeria Air project and airport concession deals. Under the terms of the deal,  Nigeria Air’s ownership stake is sp[lit as Ethiopian Airlines 49%, Nigeria Sovereign Investment Authority 46% and the federal government 5%.