The Economic and Financial Crimes Commission (EFCC) informed the Lagos State Special Offences Court in Ikeja on Wednesday that the Central Bank of Nigeria's (CBN) Board of Governors officially authorized the Asset Management Corporation of Nigeria (AMCON) to take control of Arik Air Ltd owing to the airline's significant financial challenges.
While giving evidence before Justice Mojisola Dada, Bawa Usman Kaltungo, an Assistant Director at the EFCC, revealed that the agency secured a Certified True Copy (CTC) of the board meeting minutes of the CBN, which contained the decision to appoint a receiver-manager for Arik Air shortly after the takeover.
Kaltungo noted that the meeting, which took place on February 15, 2024, was led by then CBN Governor Godwin Emefiele and included several high-ranking officials such as Deputy Governors Sulaiman A. Barau (Corporate Services), Sarah O. Alade (Economic Policy), Okwu J. Nnanna (Financial System Stability), and Adebayo A. Adelabu (Operations).
Other attendees included Yunusa Sanusi (Director, Corporate Secretariat), Ahmed Abdullahi (Director of Banking Supervision), Adebayo Aderonke (Senior Manager, Banking Supervision), and Ahmed Kuru, the former Managing Director of AMCON.
Kaltungo explained that during the meeting, Kuru reported to the board that Arik Air was in a dire state and warned that it risked collapse within two weeks if no immediate actions were taken. He mentioned that the airline, which was responsible for around 60% of domestic air traffic, had been unable to continue normal operations.
Additionally, Kuru indicated that the airline had paid out cash collaterals to its technical partner, Lufthansa, enabling the latter to withdraw from operations in Nigeria, alleging that the owners had effectively ceased operational functions.
Kaltungo further stated that Kuru updated the board about talks with three major creditor banks, reaching a consensus that intervention from the CBN was essential for the airline's survival.
The EFCC has charged former AMCON Managing Director Ahmed Kuru; Kamilu Omokide, the former receiver-manager of Arik Air; Captain Roy Ilegbodu, the airline's CEO; Union Bank Ltd; Super Bravo Ltd; and Mohammed Abbas Jega with six counts of conspiracy, theft, abuse of office, and making false statements related to the alleged fraudulent conversion of N76 billion and $31.5 million belonging to Arik Air.
In addition to the takeover approval, Kaltungo alleged that while serving as the receiver-manager, Kuru diverted funds from Arik Air to pay off insurance liabilities owed to Umza Airline.
"Through our investigation, we found that the funds from Arik Air were utilized to settle Umza Airline's insurance premiums," Kaltungo told the court.
He mentioned that Umza Airlines confirmed the receipt of the payment, asserting that while the reimbursement process had started, it was not finalized during the investigation.
Kaltungo remarked that the EFCC summoned the relevant account officer, who provided a signed loan account statement and a letter to ascertain if the receiver-manager was fulfilling his duties effectively.
"We discovered he was not performing his responsibilities adequately," Kaltungo concluded.
The court also heard that a petition was submitted to the Attorney-General of the Federation by one of the defendants, claiming harassment and requesting the investigation's termination. This petition included 39 attachments along with a legal opinion from the Solicitor-General of the Federation, contending that the charges lacked any ties to criminal behavior.
The court proceedings faced a brief interruption when the prosecution attempted to introduce the Certified True Copy of the insurance certificate allegedly associated with the payment to Umza Airlines.
The defense team, comprising Prof. Taiwo Osipitan SAN, Mrs. Oyinkansola Badejo SAN, Olalekan Ojo SAN, and Mr. Tayo Oyetibo SAN, objected, contending that the alleged misuse of funds for insurance premiums was not included among the six charges and was therefore irrelevant.
The defense argued, "This document must not be allowed in as evidence."
In response, the prosecution, led by Dr. Wahab Shittu SAN, urged the court to accept the certified document, asserting that the accused were charged with abuse of office and theft.
Justice Dada ruled that since the insurance certificate was not explicitly mentioned in the charges before the court, it could not be accepted as evidence.
The trial is set to resume on February 26, 2026.
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