Virgin Nigeria, a subsidiary of Sir Richard Branson’s airline, will face the Nigerian Government in court today as it contests an order to relocate its Lagos operations.

The West African carrier, which is 49 per cent owned by Virgin Atlantic, has been told to move from the international terminal at Lagos airport to the more chaotic domestic terminal. Virgin is seeking an injunction against the order, which it claims breaches a contract signed with the Government in 2005. The carrier will argue that it needs to be at the international terminal to connect with Virgin’s services to London.

Its £30 million investment in Nigeria is understood to be under threat if it is forced to move its operations. Virgin Nigeria is effectively taking legal action against one of its own shareholders, as the Government, together with banks and investment funds, owns a majority stake in the airline.

A Virgin spokesman said: “We signed an agreement with the Nigerian Government and that is the basis on which the airline has operated since it was created. That needs to be honoured.”

The launch of Virgin Nigeria was seen as a boost for the Nigerian aviation sector and an opportunity to improve safety standards in an industry that has been devastated by a string of accidents. The airline connects Nigeria’s main cities, flies to nearby countries, such as Benin and Senegal, and offers long-haul services to London and South Africa.

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