The Ethiopian Airlines Consortium has reached out to President Bola Tinubu, seeking his intervention in a dispute between Minister of Aviation, Festus Keyamo, and the Nigeria Air project.

The correspondence, titled "Ethiopian Airlines Consortium Plea on the Issue of the National Carrier," was dated October 15 and submitted to the presidency on October 17.

In the letter, signed by Mr. Michael Adebayo, a representative of the consortium, concerns were raised regarding Keyamo’s recent comments, particularly his use of the term “fraud” in relation to the project.

The consortium warned that such remarks could threaten the longstanding relationship between Ethiopia and Nigeria.

The dispute revolves around Keyamo's reference to a "Master Agreement" during a recent discussion about the aviation sector. However, the consortium contends that the correct terminology is "Establishment and Operations Agreement" and has provided supporting documentation, including copies of the agreement held by the Ministry of Aviation and other governmental entities.

In response to Keyamo’s assertions regarding staffing, tax practices, and operational issues, the consortium clarified that it is customary for strategic investors to supply initial management personnel, emphasizing that Nigerians have already been shortlisted for key positions.

They also refuted the claim that profits would be transferred to Ethiopia, citing Nigerian regulations that mandate the majority of profits to remain within the country due to local ownership requirements.

The letter further expressed concerns that Keyamo’s unfavorable portrayal could deter foreign investments, which are vital for Nigeria’s economic reforms.

They urged the president to intervene, highlighting that ongoing negative rhetoric could damage the consortium’s reputation and the broader partnership between Nigeria and Ethiopia.

The negotiation sessions resulted in a Draft Establishment and Operations Agreement along with a Full Business Case.

Consequently, we are perplexed as to why our response to a published bid has led to such significant embarrassment. If this situation persists, it could hinder your Government's ability to attract additional Foreign Direct Investment, which is essential for the success of your reforms.

The correspondence also highlighted the comprehensive process involved in the creation of Nigeria Air, noting that the consortium adhered to government guidelines and was chosen as the preferred bidder following a thorough evaluation.

The group expressed its readiness to assist with any modifications to the government's strategy but urged President Tinubu to cease the public disparagement of its initiatives.

Your Excellency, we respectfully request that you instruct Festus Keyamo to halt any further harm to our consortium's reputation and the relationship between Nigeria and Ethiopia.

SEE FULL LETTER BELOW:

We would like to specifically mention that the Minister’s statement on all management staffing being Ethiopians, tax avoidance, profits being taken to Ethiopia and wet leases for aircraft are not true.

“Normal practice is for a strategic investor to provide the management staff of the company it runs during an initial period to stabilise the company; to nominate such staff does not mean the staff will be Ethiopians, some Nigerians had already been shortlisted for the management positions.

“It is also normal practice for staff on secondment to be under a management contract and to avoid paying tax in two countries, they pay only tax in their permanent abode. However, the negotiation team informed the consortium that Personal Income Tax was levied by the State Government and the Federal Government did not have such powers to waive it. As such, no tax waiver existed in the agreement or Full Business Case.

“In a company with 51% owned by Nigerians, 51% of the profits will reside in Nigeria and like in other businesses complying with Nigerian Law foreign companies who show evidence of investment are allowed to repatriate their share of the profits.

“Also, Nigeria has nmany pilots flying worldwide including Ethiopian Airlines; we never considered using wet leases or foreign pilots in Nigeria. The aircraft were to be Nigerian registered aircraft on commencement. We had even been allocated Nigerian registration numbers for the initial aircraft by the Nigerian Civil Aviation Authority.

Outline Business Case (OBC) by the Federal Executive Council in 2021, the OBC determined the structure of the National Carrier, not our consortium and it was the Nigerian Government that recommended a 51% Nigerian investor participation and a 49% Strategic partner participation.

“The OBC recommended that the Strategic Partner be an International Airline This structure was determined by the Federal Executive Council in which Mr. Festus Keyamo was a member.

“The Federal Ministry of Aviation published adverts in the Economist Magazine and several Nigerian newspapers in 2022, our Consortium submitted a bid in compliance with the advert and the subsequently issued request for proposal.

“Following the submission, the Government evaluated our bid and subsequently declared us preferred bidder. We thereafter commenced very rigorous negotiation meetings with the Ministry of aviation, Infrastructure Concession and Regulatory Commission (ICRC), Ministry of Finance and Ministry of Justice.

“The negotiation meetings produced a Draft establishment and Operations Agreement and Full Business Case. We therefore do not understand why responding to a published bid has brought us so much humiliation. If this is allowed to continue, it may affect the ability of your Government to attract further Foreign Direct Investment which is critical to the success of your reforms.

We reiterate that we do not have any issue with the government having a change of approach on the issue of a national carrier. What worries us is the Minister’s continuous denigration of our consortium and his constant intention to misinform the public. Our consortium hasa combined history of o ver 100 years in operation and has never been so maligned.

“Your Excellency, we plead that you kindly direct Mr. Festus Keyamno to stop further damage to our consortium’s reputation and the relationship between Nigeria and Ethiopia, “ the nemo added.