The disputed Nigeria Air arrangement with Ethiopian Airlines has been linked to dubious agreements, according to Minister of Aviation and Aerospace Development Festus Keyamo.
Speaking to state media during the Federal Executive Council meeting on Monday, Keyamo stated that although President Bola Ahmed Tinunu has still to review the results of Nigeria Air, specifics indicated that the agreement with Ethiopian Airlines contains anti-competitive practices.
He criticized Ethiopian Airlines for receiving a five-year tax exemption, pointing out that this would not promote fair competition in the aviation industry.
“All of the reports have been forwarded to the President, so I cannot overrule him.” the problem we encountered there. To have closed my eyes and ignored my fears would have been reckless. We decided to suspend Nigeria Air as a result.
“We have examined every matter, and the President is in possession of the report.
“For this reason, when they say we want to drop the price by… It is untrue. Stealing from Peter to pay Paul.
“Fair competition is the only factor that drives down prices in the commercial world.”
He also objected to the contract’s attempt to give Ethiopian investors control over hiring decisions for all staff positions.
“We agreed to their proposal in the agreement to appoint top management and all Ethiopians in Nigeria. He emphasized, “We agreed.”
The contentious Nigeria Air project and airport concession agreements carried out during the administration of former President Muhammadu Buhari were halted by the Minister in August.
On May 26, Hadi Sirika, the previous minister of aviation, hastily put a Boeing 737-800 with the Nigeria Air logo into service.
Ethiopian Airlines holds a 49% ownership part in Nigeria Air, followed by Nigeria Sovereign Investment Authority at 46% and the Federal Government at 5%.