EFCC alleges diversion of Arik Airline's N4.9b to establish NG Eagle Airlines
Court proceedings in Lagos have exposed allegations that ₥4.9 billion belonging to the defunct Arik Airline Limited was diverted to establish a new carrier, NG Eagle Airlines. The Economic and Financial Crimes Commission (EFCC) presented evidence suggesting the funds were moved while the airline was under receivership managed by the Asset Management Corporation of Nigeria (AMCON).
The allegations, heard at the Special Offences Court in Ikeja, center on former AMCON Managing Director Ahmed Kuru and other officials who allegedly siphoned money from Arik Air's accounts to launch their own aviation venture. The case highlights ongoing challenges in Nigeria's efforts to combat financial crime within its crucial aviation sector.
Background and Context
Arik Air, once Nigeria's largest airline, entered receivership in 2017 under AMCON management after accumulating significant debts. The asset management corporation was established by the Nigerian government to resolve non-performing loan assets and stabilize the financial system. However, the EFCC's investigation suggests that during this controlled period, opportunities arose for alleged financial misconduct that went undetected by oversight mechanisms.
The alleged diversion of ₥4.9 billion represents a substantial portion of the airline's remaining assets at a time when Nigeria's aviation industry was already struggling with infrastructure challenges and regulatory pressures. The case raises questions about the effectiveness of AMCON's oversight protocols during its management of distressed enterprises.
Key Figures and Entities
According to court testimony, Ahmed Kuru, the former Managing Director of AMCON, stands accused alongside Kamilu Alaba Omokide, who served as Receiver Manager of AMCON for Arik Air, and Captain Roy Ilegbodu. Also named as defendants are Union Bank of Nigeria Plc and Super Bravo Limited. The charges against them include conspiracy to divert funds and establish a competing airline using assets from the company under receivership.
EFCC investigative officer Bawa Usman Kaltungo testified that the commission's findings were based on statements from Jonathan Sani, former Chief Financial Officer of Arik Air. According to Kaltungo's testimony, Sani's statement revealed how Arik funds were allegedly transferred to establish NG Eagle, which prosecutors claim belongs to the defendants. The witness further stated that the defendants not only allegedly diverted funds but also transferred Arik Air staff to the new airline.
Legal and Financial Mechanisms
The alleged diversion occurred through sophisticated financial maneuvers while Arik Air was under AMCON's receivership. According to EFCC testimony, there was no record of ₥4.9 billion in Arik's accounts, and when investigators questioned the receiver manager about spare parts on loan, the defendants could not provide documentation for the money's whereabouts.
Court documents reveal that expenses for the newly formed NG Eagle, including worker salaries, were allegedly paid from Arik Air Limited's accounts despite the two being separate entities. The prosecution presented several exhibits during the proceedings, including a certified ex parte order, photographs, and video evidence showing vandalized aircraft, which were admitted as exhibits by Justice Mojisola Dada.
International Implications and Policy Response
This case highlights persistent challenges in Nigeria's fight against financial corruption despite various reform efforts. The alleged diversion of funds from a distressed airline under state-managed receivership raises concerns about oversight gaps in sensitive sectors. Nigeria's aviation industry, which serves as a critical link for business and commerce across West Africa, has long been plagued by allegations of financial mismanagement and regulatory capture.
The case comes at a time when international investors and aviation partners are increasingly demanding greater transparency and stronger governance structures in Nigeria's aviation sector. The outcome could influence future regulatory frameworks for asset management and receivership processes not just in Nigeria but across other African economies facing similar challenges with distressed corporate assets.
Sources
This report is based on testimony presented at the Special Offences Court in Ikeja, Lagos, including evidence submitted by the Economic and Financial Crimes Commission. Information comes from court documents reviewed during proceedings, including statements from EFCC investigative officer Bawa Usman Kaltungo and former Arik Air Chief Financial Officer Jonathan Sani. The reporting also incorporates details from exhibits admitted into evidence during the trial proceedings.
