Ethiopian Airlines defends Nigeria Air deal against Keyamo’s accusations

The Ethiopian Airlines Consortium has petitioned President Bola Ahmed Tinubu to intervene in its dispute with Aviation Minister Festus Keyamo over the Nigeria Air project. In a letter dated October 15, consortium representative Michael Adebayo challenged Keyamo to provide proof for his allegations.

“We are disappointed by the Minister’s claims that the project is a ‘fraud’ and an attempt to monopolize Nigeria’s aviation industry. These allegations are false and damaging,” Adebayo stated.

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The consortium clarified some key points:

1. “Establishment and Operations Agreement”: “The negotiated agreement is not called a ‘Master Agreement’ as Keyamo stated, but rather an ‘Establishment and Operations Agreement’.”
2. Staffing: “Normal practice is for strategic investors to provide initial management staff. Nigerians have been shortlisted for key positions.”
3. Taxation: “No tax waiver exists in the agreement. Personal Income Tax is levied by state governments, and the federal government lacks authority to waive it.”
4. Profits: “With 51% Nigerian ownership, profits will primarily remain in Nigeria.”
5. Aircraft: “Aircraft will be Nigerian-registered, and we’ve been allocated registration numbers by the Nigerian Civil Aviation Authority.”

Adebayo emphasized the consortium’s willingness to adapt to the government’s approach changes but warned against misinformation.

“We have over 100 years of operational experience and have never been maligned. We plead that you direct Keyamo to stop damaging our reputation and Nigeria-Ethiopia relations,” Adebayo appealed.

It will be recalled that the federal government suspended the Nigeria Air project in August 2023, after the House of Representatives labeled the deal “fraudulent” in June 2023.

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