The Federal High Court in Lagos has granted a perpetual injunction nullifying the bid for Nigeria Air, effectively halting the federal government’s efforts to transfer the carrier’s shares to Ethiopian Airlines.
The decision, made by Justice Lewis Allagoa, declared the entire administrative actions and decisions involved in the sale of Nigeria Air shares to Ethiopian Airlines and its consortium as invalid, void, and of no effect.
The court dismissed objections raised by interveners, including Overland Airways and others, and declared the sale and subsequent operations of Nigeria Air shares as unlawful.
The court ruled that Ethiopian Airlines was not competent to bid for shares in Nigeria Air and begin operations.
The ruling also set aside the entire bidding and selection process for the Nigeria Air project, calling for a fresh and transparent process involving the plaintiffs, the AON, who are entitled to participate.
The court ordered the immediate revocation and cancellation of the Air Transport Licence (ATL) issued by the Nigerian Civil Aviation Authority (NCAA) to Nigeria Air.
The court directed an immediate, fresh, and transparent bidding process involving the Airline Operators of Nigeria (AON).
The legal dispute began in 2022 when the AON sued the federal government, listing Nigeria Air, Ethiopian Airlines, the then Minister of Aviation and Aerospace Development, Hadi Sirika, and the former Attorney-General of the Federation, Abubakar Malami, as defendants.
The AON challenged the national carrier deal and sought the withdrawal of the ATL issued to Nigeria Air by the NCAA.
One of the key allegations by the AON was that the firm serving as the transaction adviser for the Nigeria Air deal was incorporated in March 2022 and had links to the then aviation minister, raising questions about the transparency and fairness of the process.
The federal government, Ethiopian Airlines, and other stakeholders are yet to respond to the court’s ruling.
