Nigeria Air (Lagos), the Nigerian federal government's proposed joint venture with Ethiopian Airlines (ET, Addis Ababa International), was declared "null and void" by the Federal High Court in Lagos on August 5, effectively ending the project, according to several news reports from Nigeria.
Judge Ambrose Lewis-Allagoa found in favour of the Airline Operators of Nigeria (AON) and its members Azman Air, Air Peace, MaxAir (Nigeria), United Nigeria, and TopBrass Aviation, who had filed the lawsuit over concerns that the proposed joint venture carrier would negatively impact local privately-owned airlines.
The judge granted all requested relief except for paying NGN2 billion naira (USD1.2 million) in damages. The plaintiffs sought these damages for alleged losses incurred from being excluded from the bidding process and selection for Nigeria Air, reported Vanguard News, Punch, The Lagos Times, and other media.
In their filings, the plaintiffs requested a court order to nullify the entire bidding and selection procedures for the Nigeria Air project and to cancel Ethiopian Airlines' selection as the preferred bidder.
Ethiopian Airlines was not immediately available for comment. Nigeria's aviation ministry is reportedly indebted to Ethiopian Airlines for USD211,000 for breaching the contract terms. The airline said it had acquired three B737-8s for the venture.
The court's decision followed recent statements by new aviation minister Festus Keyamo that the process of setting up Nigeria Air would remain suspended indefinitely as it was "never a genuine Nigerian project and just Ethiopian Airlines trying to fly the Nigerian flag".
Nigeria Air was proposed by former president Muhammadu Buhari and former aviation minister Hadi Sirika as a national carrier through a joint venture with a consortium of Nigerian investors led by Ethiopian Airlines. The project ultimately collapsed after a change in government. Keyamo ordered Nigeria's Economic and Financial Crimes Commission (EFCC) to investigate the project, which led to the arrest of Sirika and family members on corruption charges involving NGN2.7 billion (USD1.94 million).
