The House of Representatives has queried the deal between Nigeria and Ethiopia Airways over the management of the country’s national carrier, Nigeria Air.
The House also questioned the ownership structure of the airline and called for detailed explanation of the various stakes in the new airline, even as it warned against the dangers of monopoly.
The questions arose after the Minister of Aviation, Hadi Sirika, told a public hearing organised by the House Committee on Aviation that the Federal Government was allocated only 5 per cent ownership because stakeholders do not trust the government’s capacity to handle businesses.
A committee member, Preye Oseke said members were taken aback by the type of business model that gave Nigeria only a 5 per cent stake in the Nigeria Air project.
He then asked for a detailed explanation of the various stakes in the new airline, including how Ethiopian Air emerged as the preferred bidder.
The Chairman of the committee, Rep. Nnolim Nnaji warned that Ethiopia is a competitor to Nigeria and that Nigeria is giving too much advantage to the East African airline.
Nnaji pointed out that Nigeria has traffic and the fact that the country is not doing well today doesn’t mean it cannot get better.
In his remarks, Vice President of the Airline Operators of Nigeria (AON), Allen Onyema agreed with the lawmakers, saying AON tried everything possible to access the Nigerian market both frontally and from behind.
“they started with Dana using Asky,” he said.
Onyema, therefore, urged that Nigerian Air should become a full Nigerian investment, explaining that the way Ethiopia was coming would not benefit Nigeria.
However, Sirika, explained that 5 per cent of shares are for the Nigerian Government, 59 per cent for the Ethiopian Airline consortium, and 46 per cent for Nigerian investors.
He said the shares were allocated that way because business stakeholders did not trust the federal government’s capacity to manage the business well, as seen in the case of Nigerian Airways.
He added that if the proposed airline was structured and run like the Ethiopian Airline which is 100 per cent owned by the Ethiopian Government, it would do well, citing that “5 per cent was to ensure the airline had a sovereign funder and to boost investors’ confidence.”
