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FG Hints at New National Carrier, May Abandon Nigeria Air/ET Deal

Federal Government Signals Revival of National Carrier Project Amid Controversy Over Nigeria Air Deal

paulcraft by paulcraft
January 9, 2025
in National
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Nigeria Air
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  • The Federal Government plans to revive the National Carrier Project, signaling fresh discussions amid the suspension of the Nigeria Air initiative
  • Minister Festus Keyamo criticized the previous Nigeria Air deal with Ethiopian Airlines, deeming it unfavorable and unacceptable for Nigeria’s aspirations

The Federal Government has signalled plans to revive the National Carrier Project, sparking fresh discussions within the aviation industry.

This comes amidst suspending the controversial Nigeria Air project initiated under previous administrations.

Dr. Ibrahim Abubakar Kana, the recently appointed Permanent Secretary in the Ministry of Aviation and Aerospace Development, hinted at the revival while clarifying an earlier comment.

He had previously been quoted as saying he had a mandate from President Bola Ahmed Tinubu to deliver a new national carrier, a statement he later debunked.

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His comments stirred mixed reactions among industry stakeholders, with speculation about internal disagreements within the ministry.

Minister of Aviation and Aerospace Development Festus Keyamo suspended the Nigeria Air project upon assuming office in 2023. He criticized the Ethiopian Airlines (ET) deal, describing it as unfavourable for Nigeria.

Keyamo revealed the agreement granted Ethiopian Airlines significant control over the proposed national carrier, calling it a bad deal.

Keyamo noted, “The Ethiopian Air agreement essentially hands our national carrier to a foreign government. This is unacceptable for a country of Nigeria’s size and ambition.”

Since the demise of Nigeria Airways in 2004, multiple attempts to establish a national carrier have failed, with billions of naira spent without tangible results.

Former Minister Hadi Sirika claimed only ₦3 billion was spent on Nigeria Air from the ₦5 billion budgeted between 2016 and 2023. The funds reportedly covered office setup, consultancy fees, salaries, and the Air Operator’s Certificate (AOC) processing.

Speaking on the future of the National Carrier Project, Dr. Kana clarified his earlier statement, saying, “I never said there is a mandate to revive the Nigeria Air deal with Ethiopian Airlines.

My reference was to the broader vision of this administration to consider a national carrier project, if favourable to Nigeria.”

Aviation analyst Group Capt. John Ojikutu suggested that the government should establish two flag carriers instead of a single national carrier. He proposed one for regional and continental routes and another for intercontinental operations.

He recommended partnerships with foreign technical and domestic investors but warned against engaging competitors from existing BASA (Bilateral Air Service Agreement) routes.

He outlined a potential ownership structure: 12% for the federal and state governments, 28% for the public via the stock market, and 30% shared equally between foreign and local investors. The remaining 40% would be allocated to the airlines involved.

With ongoing debates and suggestions, the Tinubu administration faces the challenge of shaping a sustainable and beneficial aviation strategy for Nigeria’s future.

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