A Punch news report says the federal high court, Lagos Judicial Division, on Tuesday, issued an order of interim injunction restraining the Federal Government from executing the proposed establishment of the national carrier – Nigeria Air. The Minister of Aviation, Hadi Sirika, in response, said no law in Nigeria could stop the national carrier project. The registered trustees of the Airline Operators of Nigeria who were the Plaintiffs in the suit, alleged that the sale of shares of the proposed airline violated the Companies and Allied Matters Act, as well as that of the Securities and Exchange Commission. Among other things, the indigenous airlines (Plaintiff) want the court to stop the national carrier deal and withdraw the Air Transport License (ATL) already issued to Nigeria Air by the Federal Government/Nigerian Civil Aviation Authority as it did not pass through the normal security clearance. They also claimed that the firm, which served as Transaction Adviser on the transaction, was incorporated in March last year and alleged that the company was linked to the aviation minister. 

Nigeria’s proposed national carrier, Nigeria Air, received the Air Transport License (ATL), early June, scaling one of the mandatory regulatory requirements to commence operations. The license given, with the number: NCAA/ATR1/ATL214, runs for five (5) years, starting from 03 June 2022 to 02 June 2027. An ATL certification is a document that states the type of operations a carrier can embark on within and outside Nigeria and serves as a prerequisite to getting the Air Operator’s Certificate (AOC). Conversations around the delayed national air came into spotlight again when the Minister of Aviation, Hadi Sirika, in November 2021 revived the hope that it would launch on or before April 2022 after failing initially to commence operations in 2018. However, the commencement date has been shifted to July 2022. 

The defunct Nigeria Airways used to be the country’s national carrier and at some point, was the only airline in the country. However, the once bright Nigeria Airways abandoned the skies due to poor corporate governance and mismanagement, leading to a financial crisis, which made it cease operations in 2003. Following an extended period without a functioning national carrier, it dawned on the government to encourage private sector participation. This led to the joint venture partnership between the Virgin Group and local investors in 2004, birthing Virgin Nigeria Airways, which replaced the former Nigeria Airways. Amidst changing names from Virgin Nigeria to Nigerian Eagle Airlines and, finally, to Air Nigeria, the partnership was unsuccessful due to persistent government interference, leading to a collapse in 2012. 

In our view, having a national carrier to facilitate a faster flow of goods and services across the continent, especially considering the commencement of the African Continental Free Trade Agreement (AfCFTA) is a positive step. Without a doubt, the airline offers significant economic benefits if rightly managed. However, the timing of the project appears inopportune, as the current local airline operators are grappling with severe operational challenges and the country itself is dealing with an extremely strained fiscal position. However, we await the Federal Government’s response to the claims of the Plaintiffs.