Nigeria, a country with a rich history of national airlines, has faced setbacks in its latest attempt to establish a new flag carrier, Nigeria Air. The outgoing government of former President Muhammadu Buhari unveiled the airline in May, just before President Bola Tinubu assumed office. However, this move was met with criticism and opposition, including a Federal High Court ruling stating that all parties involved should maintain the status quo. Despite these challenges, the proponents of Nigeria Air remain committed to making it a reality.

National airlines hold great significance as a source of pride for countries. Nigeria's first national carrier, Nigeria Airways, was established in 1958, symbolising the nation's aspirations for sovereignty and national pride. Unfortunately, due to mismanagement, financial difficulties, and corruption, Nigeria Airways was liquidated in 2003, leaving a void in the country's aviation industry and national psyche. Since then, several attempts to revive a national flag carrier have failed.

Last year, a glimmer of hope emerged when Ethiopian Airlines, Africa's largest airline, partnered with the Nigerian government to launch Nigeria Air. Under the agreement, Ethiopian Airlines would hold a 49% stake, institutional Nigerian investors under the Nigerian Sovereign Fund would have a 46% share, and the Nigerian federal government would retain the remaining 5%. The establishment of a national airline was one of President Buhari's campaign promises in 2015.

However, the new flag carrier faced severe criticism and scepticism. On June 6, the Senate Committee on Aviation strongly denounced Nigeria Air, labelling it "shrouded in secrecy" and even calling it a "fraud." During an investigative hearing, the Committee recommended an immediate suspension of flight operations. Former Minister of Aviation, Hadi Sirika, clarified that Nigeria Air had only been unveiled and not officially launched, despite the grand ceremony in May. He stated that the airline was expected to commence operations within a month.

The opposition to Nigeria Air stemmed from a court order obtained by a group of rival local airlines affiliated with the Airline Operators of Nigeria (AON). The High Court blocked the Nigeria Civil Aviation Authority (NCAA) from granting Nigeria Air an Air Operator Certificate. The AON argued that the strategic partnership between Nigeria Air and Ethiopian Airlines would give the new carrier an unfair advantage, potentially monopolising domestic, regional, and international routes and stifling the growth of domestic airlines.

A group allied with Nigeria's ruling party, the All Progressives Congress, criticised the Senate Committee on Aviation hearing, claiming that it was biassed in favour of the rival local airlines. This group, called the "Vanguard For Good Governance," warned President Bola Tinubu that the alleged smear campaign against Nigeria Air threatened to undermine the cultural heritage, national pride, job opportunities, and foreign direct investment that the successful launch of Nigeria Air could bring.

Despite the negative press and challenges, Nigeria Air remains determined to move forward. The consortium of investors, led by Ethiopian Airlines, plans to proceed with obtaining the necessary licenses and certificates in compliance with the regulations of the Nigeria Civil Aviation Authority (NCAA).

Zemedeneh Negatu, the global chairman of Fairfax Africa Fund LLC, the lead investment banking advisor to the consortium, defended the deal. He highlighted that Ethiopian Airlines' Triple AAA credit rating could help de-risk Nigeria's aviation industry, making it more attractive to investors, manufacturers, and leasing companies. Currently, Nigerian airlines lack the capacity and regulatory approvals to fly directly to the US or the UK, while Ethiopian Airlines serves 127 international destinations worldwide.

Negatu emphasised that Nigeria Air would begin with a quarter of a billion dollars in equity and no debt, which would make it well-capitalised. Ethiopian Airlines and institutional investors, including the Nigerian Sovereign Wealth Fund, plan to contribute their investments in cash, while the Nigerian government intends to contribute its equity through non-cash services such as office space.

Sindy Foster, an aviation analyst at Avaero Capital Partners in London, supported the opposition from local airlines, calling for a different approach to a national carrier that aligns with the interests of Nigeria. She expressed hope that the current version of Nigeria Air would not move forward, asserting that using public finances to benefit 95% of private investors was not the way forward. Foster acknowledged the desire for a national carrier in Nigeria but suggested that a private version with public funds was not the optimal solution.

As the debate surrounding Nigeria Air continues, the future of the airline remains uncertain. While there are differing opinions on its viability and potential impact on the aviation market, the consortium of investors is determined to overcome the obstacles and realise the dream of a successful national carrier.