EFCC Tells Court CBN Approved Takeover of Nigerian Airline
- The EFCC has told the Lagos State Special Offences Court that the Central Bank of Nigeria approved AMCON’s takeover of Arik Air Limited
- An EFCC witness said former AMCON MD Ahmed Kuru briefed the CBN board on Arik Air’s deteriorating finances,
- Justice Mojisola Dada rejected an insurance certificate tendered by the prosecution and adjourned the trial
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Economic and Financial Crimes Commission (EFCC) told a Lagos State Special Offences Court that the Board of Governors of the Central Bank of Nigeria (CBN) approved the takeover of Arik Air Limited by the Asset Management Corporation of Nigeria (AMCON) following what it described as a severe financial downturn at the airline.
The disclosure was made before Justice Mojisola Dada by the fourth prosecution witness, Bawa Kaltungo, an Assistant Director with the EFCC on Tuesday, February 24.
Source: Facebook
EFCC in court ovr Arik Air dealings
Kaltungo told the court that the EFCC obtained CBN board minutes from a February 15, 2024 meeting chaired by former governor Godwin Emefiele, where officials approved appointing a receiver-manager for Arik Air Limited after a briefing by former AMCON boss Ahmed Kuru on the airline’s worsening finances, Vanguard reports.
He said Kuru warned Arik Air which accounted for about 60% of domestic passenger traffic at the time, risked collapse within two weeks without urgent intervention.
Kaltungo told the court:
"During the investigation, it was revealed that funds belonging to Arik Air were used to cover Umza Airline’s insurance payments.”
He said Umza Airline confirmed receipt of the payment and that although repayment had begun, it was not completed at the time of investigation.
Kaltungo further stated that the EFCC invited the account officer linked to the transaction, who provided a signed statement of the loan account along with a covering letter.
According to him, the commission sought to determine whether the receiver-manager had properly discharged his responsibilities.
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The EFCC said:
“We discovered he did not.”
How ex-AMCON MD diverted Arik Air funds
The EFCC also arraigned 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.
Kaltungo further alleged that Kuru, while serving as receiver-manager, diverted Arik Air funds to settle insurance liabilities for Umza Airline. The EFCC confirmed the payment and obtained a signed loan account statement from the account officer involved.
The commission concluded that the receiver-manager had failed to properly carry out his duties. During the investigation, one defendant petitioned the Attorney-General, alleging harassment, supported by 39 attachments including a legal opinion claiming no criminal offence occurred.
Defence counsel Prof. Taiwo Osipitan, SAN; Mrs. Oyinkansola Badejo, SAN; Mr. Olalekan Ojo, SAN; and Mr. Tayo Oyetibo, SAN objected and argued that the alleged diversion of funds for insurance premium payments was not reflected in any of the six counts before the court.
In a bench ruling, Justice Dada adjourned the matter until February 26, 2026, for continuation of trial.
AMCON on Airk Air debt
Earlier, Legit.ng reported that AMCON confirmed that Arik Air has been uncooperative in repaying its debts, which run close to half a trillion naira.
The 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, and N14,031,457,980.71 (N14 billion) owed to Ojemai Farms.
The federal government took over Arik Air in February 2017 due to its massive debt profile, exceeding N300 billion.
Source: Legit.ng
