Virgin Atlantic is in talks to sell its 49 per cent stake in Virgin Nigeria, which it set up in 2005, following an increasingly acrimonious dispute with the Nigerian government over the location of the loss-making west African carrier’s domestic operations.
Sir Richard Branson, president of the UK longhaul carrier, on Tuesday accused the authorities of using “Mafioso-style” tactics to force Virgin Nigeria to move services from the international terminal in Lagos, the commercial capital.
“It is regrettable that events have caused us to review our shareholding and whether it is appropriate that the Virgin brand should remain linked to Virgin Nigeria,” Sir Richard said.
Virgin Nigeria was hailed as a symbol of investor confidence in Nigeria when it was set up by Virgin Atlantic and Nigerian institutional investors, in part to meet demand for a reliable carrier given the country’s poor record for air safety.
Virgin Atlantic claims that the government reneged on a deal signed under Olusegun Obasanjo, the previous president, that let it use the international terminal for all services.
By Matthew Green in Lagos
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