About Skypower Express Airways Limited

Skypower Express Airways Nigeria Limited was initially incorporated as Express Airways Nigeria Limited on the 19th of July, 1985, under the Companies and Allied Matters Act of 1968. The Airline was issued with a Certificate of Incorporation RC 73845.

The Project was initially conceived in 1982 by Capt Mohammed Joji when he was contacted in the United Kingdom by the Nigeria Authority to carry out a study of the problem of Mail delivery system in Nigeria. The reasons for the study of the mail distribution in the Country could however not be far- fetched during that period in question in 1982; Africa as a continent was bedeviled with inadequate means of communications. The modern ways of communications were still not available, there was neither GSM nor E-mail or Internet facilities. The Telephone and Telex and Facsimile facilities, although available but were limited in number and when they are available, they are intermittent and one still need to go as far as the Office of the Nigerian Telecommunication to access these facilities.

The number of telephone lines in Nigeria particularly in the 80’s and 90’s was less than 10,000 lines while the population to a line was about 50,000 to a line in Nigeria, compared to South Africa with 700 persons per line, and 50 persons in USA. Telecommunication is indispensable in the economic development of a Nation. It is an essential facility and its plays a significant role in the dissemination of information. In the overall analysis, it reduces loss on Man hour spent in travelling, meeting schedules and business transactions.

Having realized all these and through his experience in the United Kingdom, he(Capt Mohammed Joji) carried out the study successfully in which the Federal Government of Nigeria, through Nigerian Airways requested that the report could be tailored into carrying mails for NIPOST. The evaluation was conducted and negotiation with Nigerian Airways and NIPOST was initiated. Series of discussions, negotiations culminated into an Agreement to purchase Aircraft from Brazil with the issuance of Import License and a Letter of Intent from NIPOST to collaborate on this Project and financed by Continental Merchant Bank to the tune of US$12.5m approx with Spares, on sales and lease back basis. Although a letter of intent was received from NIPOST for the contract to commences, a formal agreement was not entered into because of some obvious reasons despite the huge amount already expended in the recruitment and training of Pilots, Engineers and other Employees solely financed with the Working Capital facility received from the Bank, Directors/Sharseholders loans etc.

In view of the break down in the Joint Ventures Agreement with NIPOST, the Company explored various options available to utilize the 19 Setters Aircraft (Nos 5) ordered from Brazil with a range of 180 Nautical Miles per hour, while still exploring the possibility of continuing with the NIPOST Contract in order to guard against under utilization of the Aircraft and ensure the servicing of the loan from the Bank, the Company explored other options. The options, included Courier services, Commuter/Passengers services and Charter services, among others.

In Nov 1987, a contract was eventually signed with NIPOST after a Presidential Directive to that effect following the intervention of the Chief of Defence Staff (Vice Admiral Aikhomu). The Contract progressed for some years and was later aborted with substantial outstanding payments. In 1994, the Company in view of the vigour and determination to make Company a success, pursued and won a Charter service contract with Central Bank of Niger estimated at about N70M per annum for Courier Services and distribution of Cheques and Bank Draft Nationwide. In the same vein, the outstanding lease on the Aircraft was liquidated by Morgan Holding Limited on special purpose vehicle company established by Capt. Mohammed Joji to Continental Merchant Bank with full and finally settlement of the sum of N13, 741, 403, 51 while efforts were made to liquidate the amount due to Morgan holdups limited on a mutual and acceptable term, being a Shareholder.

The arrangement to liquidate the Aircraft lease facility provided by Continental Merchant Bank (CMB) had gone a long way to forestall possible embarrassment that could have emanated from CMB and liquidation of the Company by the Creditors (CMB). Thereafter a revised lease derenat was entered between Morgan Holdings Ltd and Skypower Express. In the overall, the Company is one of the pioneer of the Public Private Partnership Venture in Nigeria and one of the oldest private Airline Operator in Nigeria, having been in operation consistently for nearly 28 years, contributing immensely and continuously to the Nigerian economy and the development of the Aviation Industry particularly in Nigeria and the World over. The Company’s Management have contributed immensely at different Fora all over the World, presenting papers served on various committees and Task force in the Aviation Industry, with a view to repositioning the sectors.