Why Ethiopian Airlines Won 49% Stake in Nigeria Air; Aviation Minister, Hadi Sirika Explained

Ethiopian Airlines won the majority stake of 49 percent in Nigerian Air because it was the sole airline that showcased interest to partner with the Federal Government.

The Minister of Aviation, Senator Hadi Sirika, stated in Abuja yesterday. 

The minister added that Ethiopian Airlines also met the stipulated conditions for the preferred bidder. 

While presenting the scorecard of his ministry, Hadi Sirika revealed that other top Airlines ignored the ministry’s call for a partnership to float a national carrier for Nigeria despite meeting them personally on several air shows and international aviation forums. 

Hadi Sirkia added that the business resilience of Ethiopian Airlines is another reason that enhances its bidding. 

He noted that Ethiopian Airlines recorded $1 billion as profit after tax even while in the middle of Covid 19. 

” We did not cede Nigeria Air to Ethiopian Airlines. It is the only airline in the world that made $1 billion profit even during the COVID-19 pandemic”. 

“It is the most prosperous, efficient, and leading airline in the African continent and it was the only airline that responded to our request for partnership to run the airline after many months of advertisement of expression of interest,” he noted. 

Furthermore, Hadi Sirika disclosed that the choice of Ethiopian Airlines as the preferred bidder aligns with the African Union Agenda. 

He said, “Our desire is for Africa to come together and lead the African aviation market through our new partnership with Ethiopian Airlines”.

Investors King had earlier reported that Ethiopian Airlines won a 49 percent stake in the soon-to-be-launched Nigerian Air. 

While the Federal Government holds 5 percent, a consortium of private investors which includes MRS, SAHCO, and Nigeria Sovereign Fund. 

Meanwhile, the Nigerian domestic airline operators have faulted the process that led to the choice of Ethiopian Airlines. 

The domestic airlines in Nigeria under the umbrella of Air Operators of Nigeria expressed concern that the partnership with a foreign airline to float Nigeria’s national carrier will “decimate” the local airline industry and result in capital flight.