EXCERPT: EFCC tells court Arik Air suffered massive losses of a out N350 billion under AMCON-appointed receivers, citing asset stripping and loan mismanagement.
The Economic and Financial Crimes Commission (EFCC) has told the Lagos State Special Offences Court in Ikeja that Arik Air Ltd, once one of Nigeria’s top airlines, was turned into a “cash cow” by AMCON-appointed Receivers resulting in massive financial losses estimated at over N350 billion.
Testifying in the ongoing trial of the former Managing Director of the Asset Management Corporation of Nigeria, (AMCON), Ahmed Kuru, and four other defendants, the Acting Director of the EFCC, Kaduna Zonal Office, Bawa Usman Kaltungo, said investigations revealed that loans previously performing were transferred to AMCON without justification, further aggravating the airline’s financial crisis.
The other defendants in the case include Kamilu Omokide, a former receiver manager of Arik Air Ltd; Captain Roy Ilegbodu, the airline’s CEO; Union Bank Ltd; and Super Bravo Ltd.
The defendants are accused of defrauding Arik Air of N76bn and $31.5m.
Kaltungo said there was no evidence that Union Bank disbursed N71 billion to Arik Air, noting that the bank merely acted as a guarantor for foreign loans.
Despite repeated requests, he said Union Bank failed to provide proof of any non-performing loan but instead claimed to have sold a N71 billion loan to AMCON, a figure, investigators found to be fictitious.
He explained that Arik Air had obtained several international loan facilities backed by Union Bank, adding that some of the foreign loans that were performing were later converted into local loans without consultation or negotiation with the airline, worsening its financial strain.
According to him, the appointment of Receiver/Managers marked the beginning of Arik Air’s rapid decline.
“The receivership failed in its purpose to restore the airline. Instead, it facilitated widespread mismanagement and financial loss,” he said.
During the period of receivership, the EFCC found that 24 aircraft engines belonging to Arik Air were abandoned in various locations abroad.
Kaltungo told the court that investigators uncovered extensive financial misconduct, including contracts awarded to companies that provided no services.
He said payments running into billions were made under questionable lease agreements to entities such as Olympus Airways, Clobek Nigeria Ltd, and Eznis Airways LLC, some of which were either foreign, unlicensed, or lacked any operational linkage to Arik Air.
He said two aircraft valued at $78 million were dismantled and sold without the consent of the owners or approval of aviation regulators.
He told the court that several statutory filings, including annual returns, were not submitted to the Corporate Affairs Commission (CAC).
Kaltungo further told the court that during inspections of Arik Air facilities, investigators found vandalised and cannibalised aircraft, missing engines, spare parts, and key consumables.
He said staff reported that engines sent abroad for repairs were never returned, and leased engines were installed instead.
Kaltungo said billions of naira generated during the receivership period were not applied toward settling outstanding loans.
He also alleged conflicts of interest, arbitrary asset transfers, and diversion of proceeds from affiliated entities such as Super Bravo Ltd and NG Eagle Ltd.
Kaltungo added that more than 10 aircraft inspected by the EFCC had essential components removed on the orders of the Receiver/Managers and senior technical staff.
He said spare parts, including CRJ1000 engines, propellers, and tyres, were unaccounted for.
He also cited fraudulent contracts, including a $950,000 aircraft lease to Olympus Airways that investigators discovered did not exist, alongside unexplained payments to Clobek Nigeria Ltd and Eznis Airways LLC.
According to the EFCC, several previously performing loans became non-performing after AMCON took over the airline.
For instance, a Zenith Bank facility that had been in good standing deteriorated under Receiver/Manager, despite Arik generating billions in revenue between 2017 and 2019.
Union Bank was also alleged to have transferred a “bogus” N71 billion loan figure to AMCON, which reportedly paid N51 billion for it without justification.
Kaltungo said international lenders, including HSBC and Union Bank, had confirmed as far back as 2011 that Arik Air’s loan repayments were up-to-date.
He told the court that the airline’s fleet plummeted from 25 aircraft to just two following the receivership, while both Receiver/Managers failed to file required annual returns with the CAC.
Statements were obtained from former Receiver/Managers and the ex-MD/CEO under caution.
The EFCC added that the pattern of conduct during receivership involved asset stripping, diversion of funds, abuse of process, and mismanagement under AMCON’s supervision.
Justice Morenike Dada adjourned the trial to December 2 and February 26–27, 2026, for continuation of trial.
Wale Igbintade
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