Tax Waivers, Staff Employment: Keyamo Exposes Unfairness in Nigeria Air Deal With Ethiopian Airlines
- Nigeria's Aviation Minister has given an update on the status of the country's national carrier, Nigeria Air
- Keyamo told reporters that the deal is being thoroughly re-examined as regards some of the commitments in it
- He added that only President Tinubu can decide the next course of action and determine the fate of the airline
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
Festus Keyamo, the Minister of Aviation & Aerospace Development, has stated that specific aspects of the contractual agreement between the Federal Government and Ethiopian Airlines for the floating of Nigeria Air need to be re-examined.
He stated this while addressing inquiries about the status of the airliner during the post-Federal Executive Council (FEC) meeting briefing at the State House in Abuja.
Source: UGC
The minister also stated that the Federal Government will not rush the kick-off of the contentious Nigeria Air as a national carrier until the issues are sorted out.
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He specifically mentioned the need to thoroughly examine granted waivers and staffing arrangements.
Agreement disadvantaged Nigeria
It would be recalled that the Nigeria Air project was suspended by President Bola Tinubu following outrage by Nigerians over the ambiguity of the project.
Offering insights into the status of the airline, Keyamo disclosed that certain aspects of the agreement with the primary stakeholder, Ethiopian Airlines, warranted careful reconsideration for the nation's benefit.
According to The Nation, the minister emphasized his responsibility to address the concerns raised by various stakeholders, stating that it would be imprudent for him to disregard these concerns.
Keyamo clarified the potential outcomes of the paused Nigeria Air project, highlighting that if the project proceeded according to the existing agreement structure, it would establish a monopoly favouring Ethiopian Air to the detriment of other domestic airlines.
He said:
In the agreement, you are giving tax waivers to Ethiopian Airline coming into Nigeria. They asked for tax waivers for five years and you granted them, to come and compete with your local airline who are paying those heavy taxes. How?
You want to create a monopoly? That’s why when they tell you that we want to crash price by… it’s a lie. It’s robbing Peter to pay Paul.
He disclosed that the agreement had stipulated the delegation of employee appointments at all organizational levels to the Ethiopian investors, a circumstance with which he expressed dissatisfaction.
He said:
In the agreement they also made a proposal that they will appoint everybody; top management, everybody Ethiopian, in Nigeria, and we agreed.
President Tinubu to decide Nigeria Air's fate
Keyamo further indicated that he had assessed the situation and communicated his observations to the President, who would decide on the subsequent course of action and determine the fate of the national carrier.
Established in 2018, Nigeria Air's ownership was distributed among Ethiopian Airlines (49%), Nigeria Sovereign Investment Authority (NSIA) (46%), and the Federal Government (5%).
Despite being introduced on May 26 with a branded Boeing 737-800, the airline has remained inactive, prompting questions about its current status.
NCAA reveals why Nigeria Air cannot fly
Meanwhile, Legit.ng reported that the Nigerian Civil Aviation Authority (NCAA) declined Nigeria Air's application to advance to the second phase of acquiring its Air Operators Certificate (AOC).
The aviation regulatory body cited the absence of a proper application form and other necessary documents as reasons preventing the progression to the second phase of the approval process.
Despite the Nigerian government granting an air transport license to Nigeria Air in 2022 to initiate operations, the airline has not completed the AOC issuance process necessary for airline operations.
The NCAA indicates that the AOC acquisition involves five additional stages, with Nigeria Air currently being at a standstill in the initial phase.
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Source: Legit.ng
