As one of the many incentives to partner with the Federal Government on the botched national carrier project, Nigeria Air, Ethiopian Airlines has admitted to asking the FG for 15 years tax moratorium, among other incentives.
This was contained in the airline’s defence against the suit
filed by the Airline Operators of Nigeria at the Federal High Court in Lagos as
the second defendant in the case.
The 37-page document with suit number FHC/L/CS/2159/2022 was
sworn to by the Country Manager of Ethiopian Airlines in Nigeria, Mr Wondwossen
Beyene.
The airline filed the defence on December 19, 2022, less
than a month before the commencement of the initial suit instituted by the AON.
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.
The PUNCH had earlier reported that the AON and five others
in the aviation industry in their suit against the defendants, Nigeria Air
Limited, Ethiopian Airlines, Senator Hadi Sirika (Minister of Aviation, Federal
Ministry of Aviation) and the Attorney-General of the Federation stated that
Ethiopian Airlines in its Commercial and Strategic Plan with the Federal
Government on the new national carrier, requested 15 years tax moratorium from
the Nigerian Government.