Justice Ambrose Lewis-Allagoa of the Federal High Court in Lagos, on Monday, declared null and void the sale of Nigeria Air to Ethiopian Airline.
The court ordered that the proposed establishment of a national carrier – Nigeria Air, by the federal government, should be suspended.
The judge made the order while granting the reliefs sought by the Registered Trustees of the Airline Operators of Nigeria and five others in the aviation industry.
Justice Lewis-Allagoa granted all the reliefs sought by the plaintiffs except for relief number eight demanding for N2billion as damages.
The plaintiffs in the suit were 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, who were the first to sixth plaintiffs.
However, the first to fourth defendants were Nigeria Air Limited, Ethiopian Airlines, Senator Hadi Sirika (former Minister of Aviation, Federal Ministry of Aviation) and the Attorney-General of the Federation.
The plaintiffs had filed the suit asking the court to make an order setting aside the entire bidding/selection process(es) for the “Nigeria Air” project as well as the approval, grant or selection of the 2nd defendant by the 1st, 3rd and 4th defendants in the process.
The Plaintiffs claimed the bidding process for Nigeria Air, facilitated by the Federal Government of Nigeria, was fraught with irregularities and favoured Ethiopian Airlines, a foreign entity wholly owned by the Ethiopian Government.
The plaintiffs argued that the Federal Ministry of Transportation representatives, who hold significant control in Nigeria Air, failed to comply with the request for proposal guidelines, leading to the exclusion of local airlines from the bidding process.
The plaintiffs submitted that the 3rd and 4th defendants, who are key government officials, facilitated a skewed bidding process, granting the 2nd defendant and its consortium unprecedented privileges.
These included a 15-year tax moratorium, exclusive terminal buildings in Lagos and Abuja, and significant financial support, which they argue will undermine local airlines and the Nigerian economy.
According to the plaintiffs, the consortium led by Ethiopian Airlines was discreetly allowed to be the sole bidder and winner, contrary to the principles of free and fair competition.
They claimed that the 2nd defendant’s business plan also proposed strategies that could stultify the operations of local airlines, further jeopardising the Nigerian aviation industry.
Besides, the plaintiffs argued that Tianaero Nigeria Limited, the transaction advisor for the deal, was inadequately qualified and lacked the necessary experience, raising further concerns about the legitimacy of the bidding process.
The plaintiffs asserted that the entire process has been marred by politics and personal interests, designed to achieve an outcome detrimental to Nigerian airlines and the broader public interest.
They sought an order to nullify the entire bidding and selection process for the Nigeria Air project, as well as the approval and selection of Ethiopian Airlines by the defendants.
In the judgment, delivered on Monday, Justice Lewis-Allagoa, discountenanced the sole issues raised by the 2nd defendant (Ethiopian Airlines).
The Judge held, “All the reliefs sought by the plaintiffs are granted except for relief number eight for damages”
Wale Igbintade
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