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Court prevents FG from selling Nigeria Air shares to Ethiopian Airlines

Court stops FG from selling Nigeria Air?s shares to Ethiopian Airlines

The federal government was blocked from selling Nigeria Air shares to Ethiopian Airlines by a federal high court sitting in Lagos.

Judge A. Lewis-Allagoa issued the temporary injunction following a lawsuit brought by the Registered Administrators of Air Operators in Nigeria (AON), Azman Air Services Limited, Air Peace Limited, Max Air Limited, United Nigeria Airline Company Limited and Topbrass Aviation Limited. , the applicants.

The plaintiffs framed five questions for the court to determine which include;

“Whether the entire process of the sale and transfer of shares of the 1st Defendant to the 2nd Defendant and its consortium by the 3rd and 4th Defendants complies with the provisions of the Infrastructure Concessions Regulatory Commission Act 2005 (est.), Federal Law Competition and Consumer Protection Law, International Civil Aviation Organization (ICAO) Convention, National Policy on Public-Private Partnerships (N4P), Sections 76 at 81 of the Federal Competition and Consumer Protection Act, and does not affect the entire process, including the selection, approval or award to the 2nd Respondent and its Consortium by the 3rd and 4th defendants is not invalid and thus entitles the entire procedure to a new call for tenders? »

They also asked the court;

“A statement that all of the actions and administrative decisions of the 3rd and 4th Defendants in the sale of the shares of the 1st Defendant to the 2nd Defendant and its consortium are invalid, null and void.

“A statement that the 2nd defendant was incompetent to offer shares in the 1st defendant and commence business accordingly

“An order nullifying the entire bidding/selection process for the “Nigeria Air” project together with the approval, award or selection of the 2nd defendant by the 1st, 3rd and 4th defendants in the process .

“An order directing the immediate, fresh and transparent bidding process(es) involving the plaintiffs being Nigeria’s native air operators, rightfully permitted to participate in the process.

“An order directing the immediate revocation and cancellation of the Air Transport License (ATL) issued by the Nigerian Civil Aviation Authority (NCAA) to the 1st Respondent.”

They also asked the court to award them 2 billion naira in damages and to order a perpetual injunction preventing the federal government from transferring the shares and operations of Nigeria Air to Ethiopian Airlines.

Ruling in the case which has Nigeria Air, Ethiopian Airlines, Aviation Minister Hadi Sirika and Attorney General of the Federation (AGF) Abubakar Malami as the first to fourth defendants, the Federal High Court Judge ruled said the government, represented by the aviation minister, and the AGF should not proceed with a “settlement agreement” until the merits of the lawsuit have been heard and determined.

Judge A. Lewis-Allagoa who asked the parties involved to maintain the “status quo”, also ordered an expedited hearing of the case.

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