Ethiopian Govt/ Ethiopian Airlines Plotted To Take Over Our Aviation Sector With Nigeria Air Deal— Festus Keyamo

Minister of Aviation and Aerospace Development, Mr. Festus Keyamo (SAN), has hinted that the controversial Nigeria Air deal with Ethiopian Airlines were tactics by Ethiopian government to dominate the aviation sector in Nigeria.

This was as the minister highlighted some major controversial clauses as contained in the master agreement entered into by the last administration led by President Muhammadu Buhari.

Recall that the federal government under former Minister of Aviation, Senator Hadi Sirika had chosen Ethiopian Airlines as the equity partner for the national carrier.

Barely three days to the end of former President Muhammadu Buhari’s administration, the Minister unveiled the Nigeria Air where the Nigerian government had a 5 per cent equity, while a consortium of three Nigerian investors had 46 per cent, and Ethiopian Airlines had 49 per cent equity stake.

But no sooner than he took over, the incumbent Minister, Keyamo cancelled the agreement, saying it was bad for the country.

Similarly, the Federal High Court sitting in Lagos in the case filed by the Airline Operators of Nigeria (AON) had equally nullified Nigeria Air deal with Ethiopia airlines.

Justice Ambrose Lewis-Allagoa of the court declared the sale of Nigeria Air to Ethiopian Airline as null and void, while ordering the federal government to halt any plans to establish the national carrier.

However, while speaking again on a webinar hosted by the Renewed Hope team in the UK, Keyamo threatened to make public the deal made by the last administration with Ethiopian Airlines on the establishment of Nigeria Air.

The aviation Minister, who stated that the deal empowered foreign government to take over the Nigeria’s national carrier, also remarked that the agreement provided total tax exemption for the foreigners coming to operate the airline.

He said, “This is the first time I'm showing Nigerians this. This is the master agreement right here. You would be shocked if you read this agreement. After some time, I will make it public, I'm not hiding from it. I don't need a lawyer to read it for me. My 32 years of active practice of law tells me what to say. You would be shocked if you read this agreement.

“What it simply says is that a foreign government should come and take over our national carrier. That is the long and short of the story. Because Ethiopian Airlines was the single and major shareholder in that deal. Ethiopian Air is owned by another government in Africa. It is the same thing they have done to Togo. Togo is a small country. They have done it Asky. Asky Airlines is owned by Ethiopian Air. We cannot be Togo. I apologize, whoever I’m talking to but we cannot be Togo. We are big; we are ambitious. We cannot give up our entire aviation ecosystem to another entity.

“Because what could have happened in that case is that Ethiopian government would now be a complete beneficiary of all our (Bilateral Air Service Agreement) BASA routes. Because a national carrier is first priority choice over all our BASA routes we have negotiated all over the world. So they come and we would give them all those routes we have suffered to negotiate.”

The minister also added, “Where will all the profits go? It's not Nigeria. Like I said in another forum where I saw the facilitator that day, one American man; he has been crying from one TV station to the other and from one blog to the other saying we lost foreign direct investment. We did not lose any foreign direct investment. The investment they were going to bring is to lease SS plane, bring it here to fly our flag as national carrier. That is all they were going to do. And who controls the Nigeria Air? CEO, Ethiopia, Financial officer, Ethiopia, Director of operation, Ethiopia. All the key positions were reserved for foreigners. Is that a national carrier? I asked. It's not.”

Keyamo who cited court judgment halting the plans on national carrier, also said that the agreement gave Ethiopian Airline a total tax exemption.

In his words, “But don't forget that apart from government suspending it, the court has declared it illegal. So it is not about government, it is judiciary. Go and argue with the judiciary that says it is illegal. So we saw the future. It was as if we knew where the case was going.

“They said all of the people coming from Addis Ababa to run it, they say they would not pay tax to Nigerian government. It is here in clause six. They would not pay one single tax to the Nigerian government. Tax exemption to all those coming including PAYE. Not only capital tax, but also PAYE tax. Even when the law changes. So what's is the investment? What are you bringing it Nigeria? They are not even bringing any infrastructure. No commitment to build a hub where we can even employ Nigerians. No commitment in that regard.”

The minister also said Nigeria was made the guarantor in case of any loss or debt despite the country’s meagre stake.

He said, “And guess what? after all these have happened, there is a clause that now says Nigeria would still guarantee any loss that they made. Nigeria would be the guarantor to any lost they suffer despite our meagre 5 per cent that we have. Nigeria reserves only 5 per cent in that deal. But that 5%, they say we should be the guarantor to any loss. So if they incur any debt, they suffer any loss, or there is breach of contract, and billions of dollars are awarded against Nigeria, who will pay? Nigeria; not Ethiopia Airlines. We are t:he guarantor.”