The Nigerian government has expressed concerns over the details of the agreement signed with the private investors on the Nigerian air national carrier, Nigeria Air, contract.
The Minister of Aviation and Aerospace Development, Festus Keyamo, while responding to journalists’ enquires
on the status of the airliner during the Executive Council (FEC) meeting’s briefing at the State House Abuja, said he would not pre-empt the President on the fate of the airliner.
It should be pointed that Nigerians, especially, stakeholders in the Aviation sector, are becoming agitated over what might have become of the company, which was founded in 2018, with ownership stakes divided among Ethiopian Airlines (49%), Nigeria Sovereign Investment Authority (NSIA) (46%) and the Nigerian Federal Government (5%).
Giving an hint on the state of the Nigeria Air’s operations, the Minister disclosed that some of the details of the agreement signed with the major stakeholder in the deal, the Ethiopian Airlines, requires critical look, in the interest of the nation, citing waiver granted and the staffing arrangements.
He said it would be irresponsible of him as the Minister of Aviation, to see the concerns raised by all stakeholders and shun the matter.
He added that he had done his evaluation of the situation and had passed his observation to President Bola Tinubu, whom he said would determine the next line of action.
On what to expect from the suspended Air Nigeria project, Keyamo explained that the project, if allowed to be sustained in it current status, it will create a monopoly for Ethiopian Air, at the expense of other local airliners.
The Minister decry the content of the agreement saying that it had ceded appointment of employees at all levels to the Ethiopian investors.
“I have deliberately not granted a full press interview, I have heard all kinds of things going on, all kinds of brickbats in the social media, but I cannot preempt my President. I cannot. All the documents, all the reports, everything, we have forwarded to Mr. President, the issues we’ve met on the ground.
“But just to say that it would have been irresponsible of me as minister to take over office and I feel the pulse of Nigerians, even the National Assembly raised concerns over that, and so many stakeholders. It would have been responsible to close my eyes totally to those concerns. So because of that we suspended it, to say that let’s just look at all the issues and recommend.
“Now we have looked at all the issues and it’s before Mr. President. But let me just give one or two snippets because of Nigerians who are quick to judge.
“In the agreement, you are giving tax waivers to Ethiopian Airline coming into Nigeria. They asked for tax waivers for five years and you granted them, to come and compete with your local airline who are paying those heavy taxes. How? You want to create a monopoly? That’s why when they tell you that we want to crash price by… it’s a lie. It’s robbing Peter to pay Paul.
“Because they have removed all taxes from you and you’ve granted them tax waivers, initially they will crash prices, but once you’ve driven every other person out of the market, you’ll now have a monopoly, then you can now hike it 500%, nobody dares to challenge you.
“The only thing that brings down prices in the commercial world is fair competition. In the agreement they also made a proposal that they will appoint everybody; top management, everybody Ethiopian, in Nigeria, and we agreed. We agreed.
“I’m just giving you snippets. I’ll do a full interview, I’ll not give more. So when I’m ready to talk I will talk, but I cannot preempt Mr. President. We have raised all the concerns before him”, he said.
Olusola Akintonde.
