A former Group Executive Director of Union Bank has offered revealing testimony in the ongoing fraud case involving the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and four others. The trial, which resumed before Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos, on Wednesday, May 28, 2025, centers around the alleged defrauding of Arik Air to the tune of N76 billion and $31.5 million.

The Economic and Financial Crimes Commission (EFCC) provided these updates in a statement issued the following day, shedding light on the complex financial scandal that has rocked Nigeria’s aviation and banking sectors.

Overview of the Defendants and Allegations

The EFCC arraigned Ahmed Kuru earlier this year, in January 2025, alongside:

• Kamilu Omokide, a former Receiver Manager for Arik Air

• Captain Roy Ilegbodu, the airline’s Chief Executive Officer

• Union Bank Plc

• Super Bravo Ltd., a private company reportedly linked to the scheme

All five parties are facing a series of serious allegations. While Union Bank is specifically charged with issuing false statements to public officers, the other defendants face a five-count charge including theft, abuse of office, and dishonest misappropriation of property.

The EFCC contends that the group orchestrated a complex fraud scheme involving:

• The diversion of N4.9 billion to NG Eagle Ltd., an airline spinoff

• The conversion of N22.5 million from Arik Air to the use of one Magashi Ali Mohammed

• The teardown and destruction of a Boeing aircraft—5N-JEA—valued at $31.5 million

These alleged offenses are said to have occurred over an extended period, beginning in 2011 and continuing through 2022. The commission claims the defendants’ actions violated several provisions of the Criminal Law of Lagos State (2015), including Sections 73, 96, 278(1), and 278(6).

Testimony Reveals Insider Knowledge

Austine Obigwe, the second prosecution witness and former Group Executive Director at Union Bank, provided critical testimony at the resumed hearing. Obigwe, now a consultant and no longer affiliated with Union Bank since 2009, stated that Arik Air owed his own company, Staal, approximately $2.3 million in 2011. However, he noted that he had written off the debt after recognizing the airline’s financial struggles.

“I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he told the court.

His statement prompted intense cross-examination by the defense counsels, including Olasupo Shasore (SAN), Olalekan Ojo (SAN), and Tayo Oyedepo (SAN), representing the second, fourth, and fifth defendants respectively.

Personal and Professional Ties Explored

Under questioning, Obigwe acknowledged his personal acquaintance with Arik Air’s founder, Johnson Arumemi-Ikhide. He also confirmed that he had engaged in consultancy services with Arik and other companies following his exit from Union Bank.

“I currently don’t have any formal relationship with the airline; I maintain a relationship with Arumemi-Ikhide,” he clarified.

Obigwe’s testimony touched on a 2009 inspection of Arik Air’s fleet, where he confirmed that Lufthansa had certified all 26 aircraft as airworthy at the time. He emphasized that the inspection aimed to verify that the airline had not depleted its fleet assets.

“I had no reason to doubt Lufthansa’s evaluation,” he asserted.

No Record of Defaults During His Tenure

Perhaps one of the more significant elements of Obigwe’s testimony was his defense of Arik Air’s financial standing during his time at Union Bank. He told the court that there were no recorded defaults on Arik Air’s loan repayments to Union Bank while he held office.

In response to a specific question about a letter dated April 23, 2009—allegedly sent by AMCON to Union Bank, claiming a N46.11 billion debt owed by Arik Air—Obigwe said the correspondence was never brought to his attention during his tenure at the bank.

“When I was in Union Bank, Arik Air was one of the best companies,” he added, painting a picture of a once-thriving airline.

Trial Adjourned, Continuation Set for June

Justice Mojisola Dada adjourned the trial until June 4, 2025, for continuation. The testimonies and cross-examinations are expected to further uncover the alleged corporate misconduct that plagued the airline and, by extension, Nigeria’s aviation sector.

Background: Arik Air’s Downfall and AMCON’s Role

Once considered the crown jewel of West African aviation, Arik Air’s rapid decline began with mounting debt and operational mismanagement. In 2011, AMCON acquired Arik’s massive debt portfolio, aiming to stabilize the sector and prevent the collapse of the carrier. However, by 2017, the airline had slipped into receivership, managed under AMCON’s watch.

The corporation claimed that the intervention was necessary to prevent a complete aviation industry meltdown. But in the years since, questions have emerged over the transparency of debt recovery processes and the governance of public assets.

The current case adds fuel to long-standing concerns over how strategic institutions like AMCON are managed, and whether public trust has been abused in the process.

Broader Implications for Nigeria’s Aviation Sector

The trial of Kuru and his co-defendants comes at a critical time when the federal government seeks to revitalize national aviation through new investments and improved infrastructure. However, the revelations from this case may undermine investor confidence, particularly if regulatory lapses and insider dealings prove to be widespread.

Moreover, the alleged fraudulent diversion of funds from Arik Air to NG Eagle Ltd.—a newer airline entity—raises the specter of asset stripping, with implications for both operational continuity and national air safety.

Final Thoughts

As proceedings continue, this high-profile trial serves as a bellwether for Nigeria’s fight against white-collar crime. The testimony of Austine Obigwe has opened a window into the financial practices surrounding Arik Air, and with more witnesses expected, the courtroom remains a focal point in the pursuit of justice and accountability within Nigeria’s financial and aviation sectors.