Aviation Minister Festus Keyamo raises red flags over the deal between the previous administration and Ethiopian Airlines (video)

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The Minister of Aviation and Aerospace Development, Festus Keyamo, has expressed concern over certain aspects of the agreement signed with private investors with regards to Nigeria’s national carrier, Nigeria Air.

Addressing State House correspondents after the weekly Federal Executive Council (FEC) meeting, Keyamo, however, refrained from pre-empting President Bola Tinubu’s final decision on the future of the plane.

Nigeria Air, founded in 2018 with shareholdings divided between Ethiopian Airlines (49%), the Nigerian Sovereign Investment Authority (NSIA) (46%) and the Nigerian Federal Government (5%), received its first aircraft in May 2023, but has since remained inactive.

Keyamo revealed that critical details of the agreement with the main stakeholder – Ethiopian Airlines – required a re-evaluation, citing concerns about tax exemptions, staffing arrangements and the potential for creating a monopoly at the expense of other local airlines.

He emphasized his responsibility as minister to address the concerns of stakeholders.

Keyamo informed reporters that he has presented his observations to President Tinubu who will determine the next course of action regarding Nigeria Air.

Keyamo raised specific issues with the deal, including tax exemptions given to Ethiopian Airlines for five years, potentially giving them a competitive advantage over local airlines already saddled with heavy taxes.

Furthermore, Keyamo pointed to a proposal in the agreement that allows Ethiopian Airlines to appoint personnel at all levels within Nigeria, which could lead to a scenario where Ethiopian Air controls top management positions.

“Now we have analyzed all the issues and this is before Mr. President. But let me quote just one or two excerpts, for the sake of Nigerians who are quick to judge.

“In the agreement, you are giving tax exemptions to Ethiopian Airlines’ entry into Nigeria. They asked for tax exemptions for five years and you granted them, to compete with the local airlines who are paying these heavy taxes. As? Do you want to create a monopoly? That’s why when they say we want to reduce the price… it’s a lie. It’s robbing Peter to pay Paul.

“Because they removed all your taxes and you gave them tax breaks, initially they will drive prices down, but after you drive everyone else out of the market, you will now have a monopoly, so you can now go up 500%, no one will care. dare to challenge him.

“The only thing that reduces prices in the commercial world is fair competition. In the agreement, they also made the proposal to nominate everyone; the senior management, all Ethiopians, in Nigeria, and we agreed. We agree.

“I’m just giving you snippets. I’m going to do a full interview, I’m not going to give any more. So when I’m ready to speak, I will speak, but I can’t stop Mr. President. We raised all concerns before him.”

Watch the video below…

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Source: www.lindaikejisblog.com

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