FG pays $12.5m for 5% stake in Nigeria Air, technical advisor tackles AON

The technical advisor to national carrier, Nigeria Air, Prof. Tilmann Gabriel, has revealed that Nigerian government paid $12.5 million for its stake.

Ripples Nigeria had reported that the Federal Government retained five per cent stake in Nigeria AIr, but offered 49 per cent to Ethiopian Airlines and 46 per cent to Nigerian investors.

Gabriel, in an opinion piece titled; ‘Nigerian Airline Status 2022 – What is next in 2023’ and dated January 4, but obtained by Ripples Nigeria on Wednesday, stated that the five per cent is worth $12.5 million.

He said Nigeria Air has a start-up budget of $250 million and a business plan for the next ten years, “Nigeria Air has the strategic direction, with a solid business plan for the next ten years and a start-up budget of 250 million US dollars.

“The Nigerian Government only invests 5% into this start-up funding (12.5 million US dollars), in line with its 5% share in Nigeria Air.”

Read also:Again, Nigeria Air misses sixth takeoff date as court case continues

The technical advisor also tackled the Airline Operators of Nigeria (AON) for filing a suit against Nigeria Air and other stakeholders of the national carrier.

Gabriel explained that the commencement of Nigeria Air was a competition that creates new business for the local aviation market and increases the choices of domestic airline passengers.

“Nigeria Air will be a new competitor in the Nigerian market, adding to the existing airlines. As Michael Porter taught us many years ago, the five factors of competition are for all businesses to recognise, amongst them that all competition creates new business for all, as the customer has added choices.

“In short, the new year 2023 will have added choices for domestic flights for all customers, soon also on the regional and international markets,” Gabriel said in the article.

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