Arik airline files N20 billion lawsuit against FG, Ethopian airlines over plans to acquire it

Management of Arik Air Limited has filed an N20 billion suit against the Federal Ministry of Transport, Attorney General of the Federation and Ethiopian Airlines over claims negotiation negotiations for the acquisition of the airline have begun by the latter.

Recall February 2017 saw the airline being taken over by the Asset Management Company of Nigeria over poor management, inability to service its debts and pay employees’ salaries.
The airline's attorneys Babajide Koku (SAN), Mr. Chukwuemeka Nwigwe and Mrs. Ezinne Emedom, on September 6th, filed the lawsuit at the Federal High Court Lagos. They are requesting that a stop is put to further negotiations of the airline by the Federal government and the Ethiopian airline.

Part of the 20-paragraph court paper reads

“The plaintiff avers that the agreement of the second defendant with the first defendant will be wide ranging and intricately affect every aspect of the plaintiff herein, including but not limited to the day to day running technical as well as financial management which will affect the plaintiff as being the largest domestic and regional airline in Nigeria. The plaintiff further avers that the action taken by the first and second defendants will have a negative effect on the country’s image as the plaintiff being the largest airline will be pawned over to another country for management,” it said.

President Mohammadu Buhari has Spent N5bn on Presidential Fleet in the Last 15 Months Despite Bad Economy

Despite the current economic hardship current loomy the country, document obtained exclusively from the Presidency by Saturday punch has revealed that the Federal Government has spent the sum of N5bn on the 10-aicraft Presidential Air Fleet in the last 15 months. 

In the document, the Presidency put the amount of money so far released for the Presidential Air Fleet since the inception of the current administration in May 2015 till date in the region of N5bn..

The breakdown of the sum showed that N2.3bn was released for PAF by the Office of the Accountant-General of the Federation between May and November 2015. That figure included releases for personnel costs, overheads and capital expenditures; out of the N5.19bn appropriated for PAF in the 2015 budget. Of the sum, the Presidency said N99.715m was spent on aircraft maintenance, spares and subscription services.

The sum of N98.5m was also spent on operations; N165.373m on training and N85.5m on personnel medicals and overheads. During the period, the document claimed that PAF spent N1.350bn to settle outstanding liabilities carried over from 2014 while N500m was refunded to the NSA for financial support rendered for the maintenance of the Fleet prior to release of funds.

However, from finding, the Federal Government may have spent about N19.9bn on the 10-aircraft PAF in the last 15 months of President Muhammadu Buhari’s administration.