Sirika Explains What Went Wrong over Nigeria Air Failure 

Sirika Explains What Went Wrong over Nigeria Air Failure

Hadi Sirika, the former Minister of Aviation and Aerospace Development, disclosed that certain Nigerian domestic airlines significantly hindered the Nigeria Air project. This initiative was intended to be a key collaboration between the Federal Government and Ethiopian Airlines.

During an appearance on Morning Brief, a Channels TV show, Sirika stated that the deal followed due process and received approvals from both the Federal Executive Council (FEC) and the Infrastructure Concession Regulatory Commission (ICRC). He emphasized that the agreement was transparent and adhered to global standards.

He stated that members of the Airline Operators of Nigeria (AON), such as Air Peace, Azman Air, and United Nigeria Airlines, were against the project primarily due to Nigeria’s minimal stake in the proposed airline. He asserted that this opposition eventually caused the deal to fall through.

He stated that he officially pursued a partnership with Ethiopian Airlines because no domestic airline was capable of competing with the major carriers.

His statement: “I believe I appeared on either Channels or Arise during the Nigeria Air controversy. To begin with, it was a public-private partnership (PPP) overseen by the ICRC, which provided certification for both OBC and ABS and played an active role in the process. It wasn’t our initiative.”

It was the procedure established by the ICRC. It wasn’t a bad arrangement. Contrary to reports claiming that I wasted around 100 billion, which is untrue, from 2015 to 2023, the entire budget for the national carrier amounted to only 5 billion. Out of this budgeted amount, only 3 billion was actually disbursed. When I left my position there were over one billion remaining.

Almost one-third of the $2 billion expenditure was allocated to consultancy services used during that period, while the remaining funds were directed towards hiring staff. Additionally, we meticulously followed every step of the ICRC process and successfully completed it.

We attempted to establish an airline, but encountered legal challenges from Air Peace, United Airlines, and Azman. They went to court arguing against our proposed five percent stake in the venture. This legal dispute is what delayed the project. Without these courtroom obstacles and had subsequent government efforts continued pursuing a resolution, we would likely have an operating airline by now.

Discussing Ethiopian Airlines, it’s notable that about 95 percent of airlines serving Africa are not African-owned. Carriers like British Airways, Qatar Airways, and Air France dominate the scene. In contrast, Ethiopian Airlines has been in operation for 79 years and serves as a successful example of an airline run by Africans.

“They partnered with us to help broaden our access globally. Currently, flying from Abuja to London costs more than from Accra because we lack a strong airline capable of sustaining competitive routes. We’ve previously witnessed Air Peace and Azman in the industry, similar experiences occurred with larger airlines like Kabo or well-known ones such as Okada and Arik—all eventually disappeared. The missing element for these carriers is developing the capacity needed to rival those operating fleets of 250 aircraft.”

I don’t believe an airline with just five aircraft can effectively compete in the global market against well-established carriers and expect to operate profitably. In summary, everything we did to establish Nigeria Air had reached its final stage before others decided to take legal action. There was no fraud involved; otherwise, it would have been pointed out by now.

If the current Minister of Aviation and Aerospace Development is saying it’s a bad deal, Nigerians should use the Freedom of Information Act to obtain the document from both the Ministry of Aviation and ICRC. This will help uncover where any alleged fraud occurred; however, it was not fraudulent—it was misleading.

“This airline, Nigeria Air, will become a reality either now or in the future because we did not claim to have exclusive knowledge of aviation. During the transparent bidding process for Nigeria Air that involved several airlines, Ethiopian Airlines emerged as the rightful winner.”