The Economic and Financial Crimes Commission (EFCC) has painted a grim picture of Arik Air Ltd’s financial collapse under the management of AMCON-appointed receivers, claiming the once-thriving airline suffered losses exceeding N350 billion.
The revelation came on Thursday at the Lagos State Special Offences Court in Ikeja during the ongoing trial of former Asset Management Corporation of Nigeria (AMCON) Managing Director, Ahmed Kuru, and four co-defendants.
The EFCC’s Acting Director in Kaduna, Bawa Usman Kaltungo, told the court that investigations exposed extensive mismanagement, misappropriation of funds, and what he described as “asset stripping” during the receivership period.
According to Kaltungo, loans that were previously performing were indiscriminately transferred to AMCON, further deepening Arik Air’s financial woes.
The defendants in the case include Kamilu Omokide, a former receiver manager of Arik Air; Captain Roy Ilegbodu, the airline’s CEO; Union Bank Ltd; and Super Bravo Ltd.
They face allegations of defrauding the airline of N76 billion and $31.5 million.
Highlighting irregularities, Kaltungo stated that Union Bank never disbursed N71 billion claimed to have been given to Arik Air, acting instead as a guarantor for foreign loan facilities.
Repeated requests for proof of non-performing loans were reportedly ignored, with the bank allegedly presenting a fabricated loan figure to AMCON.
The EFCC witness explained that several international loans, initially in good standing, were converted into local loans without the airline’s consent, exacerbating financial pressure.
“The appointment of receiver/managers marked the beginning of Arik Air’s rapid decline,” he said.
He added that the receivership failed to restore the airline and instead facilitated widespread mismanagement and financial loss.
Investigators reportedly discovered 24 aircraft engines abandoned abroad and numerous irregular contracts awarded to companies that provided no tangible services.
Payments running into billions were made to entities such as Olympus Airways, Clobek Nigeria Ltd, and Eznis Airways LLC, some of which were foreign-based, unlicensed, or had no operational connection to Arik Air.
Kaltungo also revealed that two aircraft valued at $78 million were dismantled and sold without approval from the owners or aviation regulators.
Several statutory filings, including annual returns to the Corporate Affairs Commission (CAC), were reportedly not submitted during the receivership.
Inspectors found Arik Air facilities vandalized, with aircraft cannibalized for parts, missing engines, and depleted inventories of critical spare parts and consumables.
Employees alleged that engines sent abroad for repairs were never returned, with leased engines installed in their place.
The EFCC highlighted conflicts of interest, arbitrary asset transfers, and diversion of funds through affiliated entities such as Super Bravo Ltd and NG Eagle Ltd.
More than ten aircraft were reportedly stripped of essential components under orders from receiver/managers and senior technical staff.
Fraudulent contracts were also identified, including a $950,000 aircraft lease with Olympus Airways that never existed, alongside unexplained payments to Clobek Nigeria Ltd and Eznis Airways LLC.
Loans that had been performing prior to AMCON’s intervention reportedly became non-performing during the receivership, despite Arik generating billions in revenue between 2017 and 2019.
Union Bank was accused of transferring a fictitious N71 billion loan figure to AMCON, which allegedly paid N51 billion for it without proper justification.
International lenders, including HSBC and Union Bank, had reportedly confirmed as early as 2011 that Arik Air’s loan repayments were up-to-date.
Kaltungo added that Arik Air’s fleet dwindled from 25 aircraft to just two under the receivership, while receiver/managers failed to file mandatory annual returns with the CAC.
Statements were obtained under caution from former receiver/managers and the ex-MD/CEO.
The EFCC concluded that the conduct during the receivership period demonstrated a consistent pattern of financial mismanagement, diversion of funds, and abuse of process under AMCON’s supervision.
Justice Morenike Dada adjourned the case to December 2, 2025, and February 26–27, 2026, for continuation of trial.
