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Nigeria's Air Deal With Ethiopian Airlines Raises Questions 

Nigeria's national carrier's unveiling of Ethiopian Airlines as its core investor, is generating questions and doubts in the aviation industry, with experts and stakeholders in the aviation sector saying the deal is shrouded in secrecy.

Ethiopian Airlines is the largest airline in Africa. A breakdown of stakes shows that Ethiopian Airlines will own 49% equity, the federal government will control 5% equity, while a consortium of three Nigerian investors MRS, SAHCO, and the Nigerian Sovereign Fund, will have 46%.

The selection of Ethiopian Airlines came after initial denials by Minister of Aviation, Senator Hadi Sirika as far back as 2018 when the project had missed several targets. In August 2018, the former Group CEO of Ethiopian Airlines, Tewolde Gebremariam hinted that Africa's largest airline had entered into a discussion with the Nigerian government to run the national carrier. At the time, the minister debunked the claim and said discussions were ongoing with prospective partners and investors ranging from development finance institutions, airlines, and original equipment manufacturers (OEMs).

Nigeria announced its new national carrier back in July 2018 but suspending the project, which was revived again in 2021.

InFocus

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