EFCC Testifies CBN Board Approved AMCON Takeover of Troubled Arik Air
The Economic and Financial Crimes Commission (EFCC) has presented crucial testimony before the Lagos State Special Offences Court, revealing that the Board of Governors of the Central Bank of Nigeria (CBN) formally approved the takeover of Arik Air Limited by the Asset Management Corporation of Nigeria (AMCON). This approval came following what authorities described as a severe financial downturn at the airline that threatened its collapse.
Courtroom Testimony Details CBN Board Decision
EFCC Assistant Director Bawa Kaltungo, serving as the fourth prosecution witness, testified before Justice Mojisola Dada on Tuesday, February 24. Kaltungo disclosed that the EFCC obtained official minutes from a CBN board meeting held on February 15, 2024, which was chaired by former governor Godwin Emefiele. During this meeting, officials approved the appointment of a receiver-manager for Arik Air Limited after receiving a briefing from former AMCON managing director Ahmed Kuru about the airline's deteriorating financial condition.
"During the investigation, it was revealed that funds belonging to Arik Air were used to cover Umza Airline's insurance payments," Kaltungo told the court. He further explained that Umza Airline confirmed receiving the payment and had begun repayment, though the process remained incomplete at the time of investigation.
Financial Crisis and Alleged Fund Diversion
Kaltungo testified that Kuru warned the CBN board that Arik Air, which accounted for approximately 60% of domestic passenger traffic at the time, risked complete collapse within two weeks without urgent intervention. This dire warning prompted the CBN board's approval for AMCON's intervention through a receiver-manager arrangement.
The EFCC witness further alleged that Kuru, while serving as receiver-manager, diverted Arik Air funds to settle insurance liabilities for Umza Airline. The commission confirmed the payment and obtained a signed loan account statement from the account officer involved in the transaction. According to Kaltungo, the EFCC concluded that the receiver-manager had failed to properly discharge his responsibilities.
Legal Proceedings and Charges
The EFCC has arraigned several individuals and entities in connection with the case, including former AMCON MD Ahmed Kuru, former Arik Air receiver-manager Kamilu Omokide, CEO Captain Roy Ilegbodu, Union Bank of Nigeria, Super Bravo Limited, and Mohammed Abbas Jega. They face six-count charges of conspiracy, stealing, abuse of office, and making false statements over the alleged fraudulent conversion of N76 billion and $31.5 million belonging to Arik Air.
During the proceedings, defense counsel including Prof. Taiwo Osipitan, SAN; Mrs. Oyinkansola Badejo, SAN; Mr. Olalekan Ojo, SAN; and Mr. Tayo Oyetibo, SAN objected to certain evidence, arguing that the alleged diversion of funds for insurance premium payments was not reflected in any of the six counts before the court.
Court Adjournment and Background Context
In a bench ruling, Justice Mojisola Dada rejected an insurance certificate tendered by the prosecution and adjourned the matter until February 26, 2026, for continuation of trial. The case represents a significant development in the ongoing investigation into Arik Air's financial troubles.
Background information reveals that the federal government initially took over Arik Air in February 2017 due to its massive debt profile, which exceeded N300 billion at that time. AMCON has previously confirmed that Arik Air has been uncooperative in repaying its debts, which now approach half a trillion naira. These debts include:
- N227,637,469,394.34 (N227.6 billion) owed to AMCON
- N163,502,837,397.75 (N163.5 billion) owed to Rockson Engineering
- N14,031,457,980.71 (N14 billion) owed to Ojemai Farms
The EFCC's testimony provides new insight into the formal approval process that authorized AMCON's intervention in Arik Air's operations, highlighting the severity of the airline's financial crisis and the subsequent legal actions taken against those allegedly involved in financial misconduct.
