The former Minister of Aviation, Hadi Sirika, along with his daughter, Fatimah, and two others, has been arraigned before the Federal Capital Territory High Court by the Economic and Financial Crimes Commission (EFCC) over an alleged N4.1 billion fraud related to the failed Nigerian Air project between April 2022 and March 2023. 

The charges against them include conferring unfair advantage in the illegal award of consultancy contracts and awarding contracts to companies linked to family members.

Upon their arraignment, all defendants pleaded not guilty to the charges. However, the defense counsel, Kanu Agabi, sought bail for Sirika based on self-recognition, a request opposed by the prosecutor, Rotimi Jacobs. Despite the opposition, Justice Sylvanus Oriji granted bail to Sirika and his daughter of one hundred million naira each with two sureties in like sum.

The sureties are required to declare to an affidavit, and failure to meet the bail conditions would result in the defendants being remanded in prison pending compliance. This development follows the detainment of Sirika by the EFCC on April 23 before his arraignment.

The charges against Sirika include allegations of awarding consultancy contracts to Tianaero Nigeria Limited for the startup of Air Nigeria, with Prof. Gabriel Tillman, reportedly an associate of the former Minister, acting as the alter ego of the firm. 

Tianaero received N1.3 billion for its consultancy services. Additionally, Sirika is accused of awarding a contract worth approximately N1.4 billion for the construction of the apron at Katsina Airport to Al-Duraq Global Investment Limited, a company owned by his daughter and son-in-law.

The back story

Sirika’s tenure as the Minister of Aviation was mired in corruption allegations, notably, his purchase of 12 firefighter vehicles at the cost of N1 billion each, and the launch of the non-existent Nigerian Air. The national carrier was launched two days before the end of President Muhammadu Buhari’s government.

Last May, following the hasty launch of Nigerian Air, investigative journalist David Hundeyin reported that Sirika was being fraudulent by presenting a rented plane to Nigerians. In his report, Hundeyin noted that that unveiled aircraft, a Boeing 737-800 with registration number, ET-APL, belonged to the Ethiopian Airlines – and was still in active service with the company.

Aviation expert and analyst, Captain Ado Sanusi, also said in an interview with ChannelsTV then that it is practically impossible for Nigeria Air to start commercial passenger operation in two days given the rigorous process involved, upholding the Hundeyin’s report that the launch was fraudulent.

Although in June 2022, Sirika disclosed that the majority shares of 49 percent of the Nigeria Air project will be owned by Ethiopian Airlines, 46 percent by Nigerians while the Federal Government will own just five percent of the shares, the unveiling of just one plane not backed by operational infrastructure, among other things, created doubts and questions about the national carrier.

Against this backdrop, the House of Representatives launched an investigation. During the investigation, the Nigerian Airspace Management Agency (NAMA) told members of the committee that the aircraft bearing Nigerian colors was on a chartered flight to Nigeria. According to other stakeholders who confirmed NAMA’s disclosure, a chartered flight could be painted in any color and with any inscriptions.

Consequently in June 2023, the House of Representatives declared the launch of Nigerian Air fraudulent, ordering that the national carrier project, which reportedly gulped N85 billion, be suspended immediately.

The case against Sirika and his co-defendants, which has long been anticipated, is one of several others that allegedly took place under the administration of Buhari. Anti-graft said that this development, like several others, serves as a stark reminder of the persistent challenges posed by deep-rooted corruption in Nigeria’s governance system. 

They note that the alleged misappropriation of funds meant for crucial aviation projects reflects a systemic issue that undermines trust in governance and diverts resources away from much-needed infrastructure development. The ramifications of such alleged corruption in public office are profound, particularly in the context of Nigeria’s economic development. 

Such corruption not only erodes public confidence but also hampers the country’s ability to attract investment and foster sustainable economic growth, they say.

The current Minister of Aviation, Festus Keyamo, has suspended the Nigerian Air project. Keyamo, who pledged reforms in the aviation sector, announced that all arrangements initiated under Sirika, including the proposed Nigeria Air project, have been halted to facilitate a thorough audit of contracts.

Many petrol stations in China are bankrupt. In the United States, many petrol stations are closing. And now, some major car brands are discontinuing their fossil-fuel vehicles, for electric vehicles: “After almost 60 years, General Motors is discontinuing the Chevrolet Malibu, shutting down production and retooling its Kansas assembly plant to make next-generation Chevy Bolt electric vehicles…GM, which has sold more than 10 million Malibu sedans, has been moving aggressively in the direction of EVs and stopped producing other popular gas-powered models, such as the Chevy Camaro. ” – LinkedIn News note.

If this trajectory continues, what should be Nigeria’s energy policy?

Understand that we do not buy a lot of NEW cars for them to keep making these fossil-fuel cars if the main global markets have moved on. In other words, they will follow China and Americans who buy millions of new cars in a year: “ In 2022, the US sold around 13.6 million new light-duty vehicles, and in total, 52.2 million vehicles were sold that year. “

If a huge percentage is EV, I am not sure any car brand will keep making petrol cars because about 10,000 units would be sold in Nigeria. In other words, we can have our refineries but with few cars to use the petrol coming from them, in just a few years.

Sure, we need petrol today, and that is why the nation needs a solid energy transition strategy. Indeed, we do not have the capacity to tell Toyota, GM, Honda, etc what to make because we do not buy a lot of cars. If they move on, they’re gone.

Many petrol stations in China are bankrupt. In the United States, many petrol stations are closing. And now, some major car brands are discontinuing their fossil-fuel vehicles, for electric vehicles: "After almost 60 years, General Motors is discontinuing the Chevrolet Malibu,… pic.twitter.com/8lz50UGkd5

— Ndubuisi Ekekwe (@ndekekwe) May 9, 2024

Comment: Many is not a fact. You should instead show the numbers. If gasoline vehicles are being abandoned at the rate you claim, how come global gasoline demand hasn’t been significantly affected?

My Response: Your position is actually the same point many oil gulf regions make. But what they miss is this: gasoline demand is rising because the world is urbanizing and more people in developing countries are buying new cars (new and old) because the world is growing. So, if say we use 20 litres of gasoline today, even though it is higher than the previous number, if not for EV, it ought to be say 30 liters. That is the displacement.

“As of 2023, China’s rechargeable car market share was 37%, up from 30% in 2022. In March 2024, new energy vehicles (NEVs), which include all-electric models and plug-in hybrids, made up 41.5% of all passenger car sales in China. In 2023, EV sales in China increased by 38% to 9.49 million units, which is a 31% market share”

Yes, in China, 42% of new cars are new energy cars. That does not mean gasoline cars may not increase, from the previous number, but it is not going to increase at the rate  if there are no EV cars. So, using only the absolute gasoline number without looking at the growth rate may not give the full picture.