Keyamo Challenges Controversial Nigeria-Ethiopian Airline Deal for Nigeria Air

The current Minister of Aviation and Aerospace Development, Festus Keyamo, has expressed strong reservations about the agreement made by the previous administration under President Muhammadu Buhari with Ethiopian Airlines regarding the proposed national carrier, Nigeria Air.

In a briefing after the Federal Executive Council (FEC) meeting at the Presidential Villa in Abuja on November 27, 2023, Keyamo stated that the terms of the deal were unfavorable to Nigerian airlines, and proceeding with it would be irresponsible as it would essentially hand over the monopoly of Nigeria’s aviation industry to a foreign entity.

Keyamo emphasized that the Federal Government should not endorse an agreement that grants a foreign airline, in this case, Ethiopian Airlines, a tax waiver for five years to operate in Nigeria, putting them in direct competition with local airlines burdened by heavy taxes. He argued that such a move would create a monopoly rather than fostering fair competition, which is crucial for reducing prices in the commercial world.

The minister further highlighted a concerning aspect of the contract, where the appointment of employees at all levels would be ceded to Ethiopian investors. This, according to Keyamo, is an unacceptable situation that compromises the autonomy of the Nigerian workforce.

While discussing the ongoing deliberations, Keyamo clarified that he could not preempt President Bola Tinubu’s decision on the matter. He stressed that all relevant reports and details related to the agreement had been submitted to the President for thorough consideration. Despite facing criticism on social media and concerns raised by the National Assembly and various stakeholders, Keyamo defended the decision to suspend the project temporarily, emphasizing the need to address the legitimate concerns and ensure a more transparent and equitable arrangement for Nigeria’s aviation sector.

In conclusion, the fate of the agreement between the Nigerian government and Ethiopian Airlines rests with President Bola Tinubu, who will ultimately determine the next steps for the Nigeria Air project based on the submitted reports and recommendations. The government’s decision will significantly impact the aviation industry in Nigeria, with the key considerations being fair competition, tax policies, and the protection of local interests in the face of foreign investments.