FG May Transform Arik and Aero Contractors into National Airlines.
The Asset Management Corporation of Nigeria (AMCON) has announced that Arik and Aero Contractors airlines may be merged and transformed into a national carrier. This statement was made by AMCON’s Managing Director and CEO, Gbenga Alade, during an interactive session with media executives in Lagos.
Alade noted that both airlines are heavily indebted and may struggle to repay their debts. He revealed that the idea of converting Arik and Aero Contractors into a national carrier was previously proposed to the former aviation minister, but it was not accepted.
According to Alade, the previous management of AMCON had suggested this conversion, but the former aviation minister rejected the proposal. He emphasized that they plan to present the idea again, as he believes it is the most viable option moving forward.
Unfortunately, Alade mentioned that the special purpose vehicle (SPV) established by the former management for this conversion has already been sold. However, he expressed confidence that a new SPV could be created to facilitate the process.
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In a related development, the former Minister of Aviation, Hadi Sirika, launched the Nigeria Air project just days before the end of former President Muhammadu Buhari’s administration. This initiative raised concerns among stakeholders regarding the ownership structure.
The arrangement allocated a 49% equity stake to Ethiopian Airlines, while the Federal Government held only 5%, and a consortium of three Nigerian investors owned 46%. This distribution of ownership sparked significant debate and concern.
In June 2023, the House of Representatives called for the suspension of Nigeria Air operations, labeling the deal as fraudulent. This led to increased scrutiny and calls for transparency in the aviation sector.
Most recently, in August 2023, the current minister, Festus Keyamo, announced that the national carrier project has been suspended indefinitely. He clarified that the initiative was never truly Air Nigeria, but rather an attempt by Ethiopian Airlines to fly under Nigeria’s flag.
