Ethiopian Airlines has acknowledged that it requested a 15-year tax deferment from the FG in addition to other benefits as one of the many inducements to collaborate with the Federal Government on the failed national carrier project, Nigeria Air.
This was stated in the airline’s response to the lawsuit brought by the Airline Operators of Nigeria, who served as the second defendant in the case, at the Federal High Court in Lagos.
Ethiopian Airlines’ Country Manager for Nigeria, Mr. Wondwossen Beyene, took the oath for the 37-page document with the suit number FHC/L/CS/2159/2022.
Less than a month before the AON’s initial lawsuit got underway, on December 19, 2022, the airline submitted its defence.
In the case, scheduled to come up at the Federal High Court in Lagos on January 16, 2023, Ethiopian Airlines declared that it bid for the purchase of shares in the national carrier, just like other Nigerian shareholders.
The document read in part, “I believe as a fact that the averments contained in paragraph 11B of the affidavit in support of the plaintiff’s originating summons are a distortion of the truth. The second defendant did request tax incentives/concessions for the proposed fledging Nigerian airline, amongst other incentives, which is a normal international practice in international investment negotiations, and not against the law.
“In any case, those requests were proposals and proposed during negotiations with the government and which the Federal Government was at liberty to accept or refuse. The plaintiffs have not shown any proof that the second defendant obtained any tax incentives/concessions for the Federal Government of Nigeria.
“Ethiopian Airline’s position: The company also disagreed with the AON that its involvement in the national carrier project would take away jobs for qualified Nigerians. Rather, the airline insisted that its investment in the project would boost the Nigerian economy, ensures growth in the sector, and create employment and succour for Nigerian travelers.
We had previously reported that the AON and five other aviation-related parties had sued Nigeria Air Limited, Ethiopian Airlines, Senator Hadi Sirika (Minister of Aviation, Federal Ministry of Aviation), and the Attorney-General of the Federation, alleging that Ethiopian Airlines had asked for a 15-year tax moratorium in its Commercial and Strategic Plan with the Federal Government on the new national carrier.
