A former Group Executive Director of a bank has testified in a case against the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, along with four others, over charges bordering on allegedly defrauding Arik Airline of N76 billion and $31.5 million.
The witness testified before Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos, on Wednesday, May 28, 2025, according to a statement by the Economic and Financial Crimes Commission (EFCC) on Thursday.
Nairametrics previously reported that EFCC had in January 2025 arraigned Ahmed Kuru and others.
The four co-defendants include a former Receiver Manager of Arik Airline Ltd, Kamilu Omokide; the Chief Executive Officer of the airline, Captain Roy Ilegbodu; Union Bank Ltd; and a company, Super Bravo Ltd.
EFCC Case
The EFCC sued Union Bank for making false statements to public officers.
The other defendants face a five-count charge, including theft, abuse of office, and dishonestly misappropriating the property of another.
According to the EFCC, the alleged fraud involves several schemes dating back to 2011 and more recent actions in 2022.
Union Bank was accused of making false claims to AMCON regarding Arik Air’s performing loans, which led to the unwarranted sale of the airline’s loans and guarantees.
Kuru, Omokide, and Ilegbodu are accused of fraudulently diverting N4.9 billion to the use of NG Eagle Ltd, a spinoff airline, while Captain Roy Ilegbodu is accused of converting N22.5 million belonging to Arik Air Ltd for the use of Magashi Ali Mohammed.
The defendants are also accused of authorizing the teardown and destruction of Arik Air’s 5N-JEA aircraft, valued at $31.5 million, causing significant economic harm.
The EFCC asserts that these actions violated Sections 73, 96, 278(1), and 278(6) of the Criminal Law of Lagos State 2015.
During their arraignment at the time, all five defendants pleaded not guilty to the charges, paving the way for trial.
What transpired in court
At the resumed sitting, the second prosecution witness, Austine Obigwe, a former Group Executive Director of Union Bank Plc, stated that in 2011, two years after he exited Union Bank, Arik Air was indebted to his company, Staal, to the tune of $2.3m.
- The witness, however, quoted as saying: “I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges.”
- During cross-examination by the defence counsel, including Olasupo Shasore, SAN (for the second defendant); Olalekan Ojo, SAN (for the fourth defendant); and Tayo Oyedepo, SAN (for the fifth defendant), the witness was said to have confirmed that following his exit from Union Bank, he began consultancy engagements with Arik Air and other companies.
- When asked if the founder of Arik Air, Johnson Arumemi-Ikhide, was a personal acquaintance, he responded in the affirmative.
“ I currently don’t have any formal relationship with the airline; I maintain a relationship with Arumemi-Ikhide, “ the witness added.
- Obigwe was quoted as stating that he participated in an inspection of 26 aircraft belonging to Arik Air in 2009, and found them to be airworthy and in good condition based on assessments provided by Lufthansa.
“I had no reason to doubt Lufthansa’s evaluation,” he said.
- He stressed that the purpose of the inspection was to ensure that the airline’s fleet had not been depleted.
- When asked about the airline’s compliance with its loan obligations, Obigwe testified that during his tenure at Union Bank, there were no complaints from other financial institutions accusing Arik Air of defaulting on its loan obligations.
- The witness also confirmed that Arik Air was servicing its loan with Union Bank during his tenure.
“Responding to a letter dated April 23, 2009, allegedly written by AMCON to Union Bank concerning a N46.11 bn debt owed by Arik Air, the witness stated that the letter was not brought to his attention while he was still with the bank, ” the EFCC statement partly reads.
- The witness said he could only speak for the period he was with the bank, adding, “When I was in Union Bank, Arik Air was one of the best companies.”
- The matter was then adjourned till June 4, 2025, for the continuation of the trial.
Back Story
The case stems from AMCON’s acquisition of Arik Air’s debt portfolio in 2011 as part of efforts to stabilize Nigeria’s aviation sector.
The airline, once the largest in West Africa, has faced financial instability, leading to its receivership in 2017.
The alleged misconduct raises concerns about transparency in debt recovery and the management of strategic national assets.
