Nigeria Minister of Aviation Hadi Sirika have announced that Ethiopian Airlines will own 49 percent stake of the new Nigeria Air. In the deal, Ethiopia Airline will own 49percent of the new Airlines, while the Nigeria federal government will own 5 percent and 46 percent for Nigeria Sovereign fund.
The Chosen bidder for the shares in the new Nigeria Air, Ethiopia Airlines emerged after bidding invitation for the ownership of the Nigeria Air in accordance with the Nigeria Public Private Partnership (PPP) regulation , been presided over by the Infrastructure Concession Regulatory Commission (ICRC).
The defunct Nigeria Airways, the former national airline of the most populous Africa nation failed mainly due to mismanagement and misappropriation, but was rebranded by President Muhammadu Buhari in a bid to recreate a national airline, at a time when the government is having challenges sustaining crucial sector of it economy. A gesture that many Nigerians are sceptical of due to enormous public fund required to refurbish the rebranded national carrier. A preliminary cost of $8.8 million US dollar and a takeoff cost of $300million were estimated for the airline projection.
According to the minister of Aviation, an online bidders conference was held on March 28 with over 100 participants and more than 60 parties, but Ethiopian Airlines was chosen due to it successful track record of hitting a profit of $937 million in 2022, while other African airlines are struggling with worsening global economic outlook of higher gasoline cost.
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