The airline was one of President Muhammadu Buhari’s election campaign pledges in 2015.
Ethiopian Airlines will hold a 49% stake in the new airline, while the Nigerian Sovereign Wealth Fund will take 46% and the Nigerian Federal Government the remaining 5%.
Aviation Minister Hadi Sirika told reporters that Buhari’s cabinet is expected to approve the shareholding plan in the coming weeks. Nigeria Air will have an initial capital of 300 million dollars and plans to have 30 planes within four years, he said.
Nigeria Air will launch service between the capital Abuja and Lagos, the commercial capital, and add other routes later.
“We will initially bring in six Boeing 737s and between the third and fourth year the airline will be able to acquire up to 30 planes,” Sirika said.
“Nigeria Air is a limited liability company which will have no government interference,” he added.
Nigeria is seeking to set up a flag carrier and expand its air infrastructure – currently seen as an obstacle to economic growth – to create a hub for West Africa.
The previous flag carrier of Africa’s most populous country, Nigeria Airways, was founded in 1958 and was wholly government owned. It ceased operations in 2003.