Fairfax Africa Fund, backers of the failed Nigeria Air project, has forecasted the collapse of all but one domestic airline in Nigeria due to the country’s worsening economic crisis.
Zemedeneh Negatu, the Global Chairman of Fairfax Africa Fund, suggested that government bailouts would not be enough to save most airlines.
Negatu also accused Air Peace and United Nigeria Airlines of sabotaging Nigeria Air by leading a legal challenge that led to its failure, arguing this move discouraged significant foreign investment in Nigeria’s aviation sector.
Negatu’s remarks follow a recent court ruling declaring the sale of shares in Nigeria Air to Ethiopian Airlines illegal, further complicating the future of the aviation industry in Nigeria.
Prof. Obiora Okonkwo, Chairman of United Nigeria Airlines and spokesperson for the Airline Operators of Nigeria (AON), dismissed Negatu’s predictions and accusations as misguided, attributing the sector’s struggles to the broader economic environment rather than any specific actions by domestic airlines.
As tensions rise, the future of Nigeria’s aviation industry remains uncertain, with stakeholders divided over the causes and solutions to the sector’s challenges.