Federal High Court Makes Ruling on Nigeria Air Sale to Ethiopian Airlines

In a landmark ruling by the Federal High Court in Lagos, Justice Ambrose Lewis-Allagoa declared the sale of the newly formed Nigerian Air Limited to Ethiopian Airlines null and void. The court’s decision put an abrupt halt to the proposed deal, asserting that the establishment of a national carrier, Nigeria Air, by the federal government cannot proceed as planned.
Justice Ambrose Lewis-Allagoa granted all reliefs sought by the plaintiffs—the Registered Trustees of the Airline Operators of Nigeria and five other key stakeholders in the aviation industry—except the request for N2bn in damages due to the injury endured by the offended parties because of their illegitimate prohibition and the unfair activity; unlawful offering and determination processes for the Nigeria Air project.
The Registered Trustees of the Airline Operators, Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airlines Company Limited, and Topbrass Aviation Limited are the first through sixth plaintiffs in the lawsuit. The suit was brought by the six plaintiffs against Nigeria Air Limited, Ethiopian Airlines, Senator Hadi Sirika (the former Minister of Aviation, Federal Ministry of Aviation), and the Attorney-General of the Federation, who were the first through fourth defendants.

In the suit, the offended parties had requested that the court make a request saving the whole offering/determination process(es) for the “Nigeria Air” project as well as the endorsement, award, or choice of Ethiopian Carriers by the Former Minister, Hadi Sirika and afterward Previous Principal legal officer of the League, Abubakar Malami.
The plaintiffs “challenged the sale and transfer of shares of Nigeria Air,” according to the Originating Summons that were submitted in November 2022. They also claimed that Ethiopian Airlines, a foreign company that is entirely owned by the Ethiopian government, was favored in the bidding process for Nigeria Air, which was facilitated by the Federal Government of Nigeria.
The plaintiffs argued that local airlines were left out of the RFP process because representatives of the Federal Ministry of Transportation, who hold significant control over Nigeria Air, did not follow the guidelines. 

Additionally, the plaintiffs claimed that the second defendant, Ethiopian Airlines, and its consortium were granted unprecedented privileges by the third and fourth defendants, both of whom are prominent members of the government. They claim that these, along with a 15-year tax moratorium, exclusive terminal buildings in Lagos and Abuja, and substantial financial support, will harm local airlines and the Nigerian economy. As per the offended parties, the consortium drove by Ethiopian Carriers was watchfully permitted to be the sole bidder despite the standards of free and fair rivalry.
The second respondent’s strategy proposed procedures that could stifle the activities of neighborhood carriers, further imperiling the Nigerian flight industry. In addition, the plaintiffs revealed that the deal’s transaction advisor lacked the necessary experience and qualifications, posing additional questions regarding the fairness of the bidding process.
The plaintiffs claimed that politics and personal interests conspired throughout the process to achieve a result that is detrimental to Nigerian airlines and the general public interest. They looked for a request to invalidate the whole offering and choice cycle for the Nigeria Air project as well as the endorsement and determination of Ethiopian Carriers by the respondents. Justice Lewis-Allagoa discounted the sole issue raised by the second defendant (Ethiopian Airlines) in the Monday judgment.
He held, “All the reliefs sought by the plaintiffs are granted except for relief number eight.
Relief eight which failed was for “An order of N2,000,000,000.00 (Two Billion Naira, only) as damages for the injury suffered by the Plaintiffs and still suffering as a result of the wrongful exclusion of the Plaintiffs, 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”.

A DECLARATION that the First Defendant violated the Companies and Allied Matters Act (CAMA) 2020, the SEC Nigeria Consolidated Rules & Regulations 2013 (as amended in 2022), the Nigerian Investment Promotion Commission (NIPC) Act, the International Civil Aviation Organization (ICAO) Convention, the Civil Aviation Act, the Public Procurement Act, and the Concession Regulatory Commission (Est.) in the sale of the First Defendant’s shares and operations. Act, 2005, Administrative Rivalry and Purchaser Assurance Act, Acquisition Cycles for Public Confidential Association in the Central Government under the Public Approach on Open Confidential Organization (N4P) and Nigeria Common Avionics Guidelines, 2015, and other administrative resolutions on flying, organizations, and speculation regulations in Nigeria.
ii. A DECLARATION stating that the third and fourth defendants’ entire administrative actions and decisions regarding the sale of the first defendant’s shares to the second defendant and its consortium are null and void.
iii. A DECLARATION stating that the second defendant lacked the ability to bid on shares of the first defendant and begin business accordingly. iv. An order putting an end to the entire “Nigeria Air” project bidding and selection process, including the approval, grant, or selection of the second defendant by the first, third, and fourth defendants.
iv. An order directing the new, transparent, and immediate bidding process(s) for the Plaintiffs, Nigeria’s Indigenous Airline Operators, who are entitled to participate.
v. An order instructing the Nigerian Civil Aviation Authority (NCAA) to immediately revoke and cancel the first defendant’s Air Transport License (ATL).