Controversy trailing the poorly packaged national carrier project, Nigeria Air, may be far from being over as the latest information making the rounds has shown how a United States company, Fairfax Africa Fund, had requested for 1.45 percent of total initial capital from Nigeria Air.
The American firm in a document obtained by West Africa Weekly, also demanded that for the services it rendered, the management and board of Nigeria Air should give it one seat on the board of the airline for five years, while any further extension would be subject to approval by the board.
According to the document signed by Zemedeneh Negatu, Global Chairman, Fairfax Africa Fund, dated May 20, 2022 titled ‘Investment in Nigeria Air and Fairfax Africa’s Role’, he said the company deserved the 1.45 percent due to the services it rendered to the airline and would continue to provide for it in the future.
The foreign company, however, said that it would receive the 1.45 percent upon acquisition by the consortium, adding that the sum included equity and debt of the airline.
Fairfax also dictated the payment terms as three equal annual payments in which the first payment should be paid within 30 days of start of operations by the airline to be determined by the date of the first passenger commercial flight.
The American company also requested that it should be responsible for nominating qualified Nigerian companies for catering and onboard duty-free, among others.
According to the firm as at May 2022, it had already invested almost three years conducting very detailed evaluations of the aviation sector in Nigeria and in particular the options for investing in Nigeria Air.
Fairfax, while listing the work done to have included developing a business plan, conducting detailed due diligence and engaging with numerous key stakeholders, emphasised that it also proceeded by assembling a world-class consortium, which collectively bade to acquire Nigeria Air.
The firm added that the result of all these works, which it led, indicated that investing in Nigeria Air would significantly enhance the performance of Nigeria’s aviation sector, while also delivering strong financial reward for investors.
The Fairfax Chairman declared in the document:: “The second and third annual payments will be made within 30 days after the end of Nigeria Air’s financial aid.
IPO and/or additional round of private capital raising of Nigeria Air: Fairfax will have a lead role in these future tasks. Details to be discussed and agreed at a later date.
“Fairfax shall be responsible for nominating qualified Nigerian companies to provide catering, onboard duty-free, passenger facilitation and security at competitive rates on a first right of refusal basis for Nigeria
Fairfax also requested that all the demands should be included in the airline’s business plan, while the terms would be incorporated in all the relevant legal documents and agreements.
With the latest revelation, there may still be many other principal actors in the Nigeria Air project, which has become one of the most criticised policies of the former government.
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