EFCC details CBN’s role in Arik Air takeover during fraud trial

The Economic and Financial Crimes Commission (EFCC) informed the Lagos State Special Offences Court that the Central Bank of Nigeria (CBN) and Board of Governors formally sanctioned the takeover of Arik Air by the Asset Management Corporation of Nigeria (AMCON) due to the airline’s failing finances.

Bawa Usman Kaltungo, who is a witness in the ongoing EFCC and Arik case which has now resumed following a brief holiday break, informed this to the Special Offences Court sitting in Ikeja presided over by Justice Mojisola Dada, noted this.

According to him, the other parties which sanction the takeover are the Ministries of Finance, Aviation, and Prof. Yemi Osibanjo SAN, who was the acting president of the Federal Republic of Nigeria.

Read also: AMCON repays N3.6trn to CBN, achieves 87% recovery

Kaltungo confirmed that the agency had obtained the official minutes of the CBN board meeting where the decision was reached.

The meeting was held on February 15, 2024, and was chaired by Godwin Emefiele, former CBN governor and attended by several deputy governors and senior directors.

During the session, Ahmed Kuru, former AMCON managing director reportedly warned the board that Arik Air, which then handled 60 percent of domestic passenger traffic was on the brink of collapse. Kuru claimed that without immediate intervention, the airline would cease operations within two weeks.

He further alleged that the owners had effectively abandoned the company after paying out cash collaterals to their technical partner, Lufthansa.

The EFCC has arraigned several defendants, on allegations of financial misconduct including, Ahmed Kuru, former AMCON MD, Kamilu Omokide, Former receiver-manager of Arik Air, Captain Roy Ilegbodu, Arik Air CEO, Mohammed Abbas Jega, Union Bank Ltd, and Super Bravo Ltd.

The group faces a six-count charge involving conspiracy, theft, and abuse of office related to the alleged misappropriation of N76 billion and $31.5 million.

Specifically, Kaltungo alleged that during his tenure as receiver-manager, Kuru diverted Arik Air funds to settle insurance liabilities for another entity, Umza Airline. While Umza airline reportedly began repaying these funds, the EFCC maintains that the payments were unauthorised and constituted a failure of the receiver-manager’s duties.

The defence team, led by senior advocates including Prof. Taiwo Osipitan and Tayo Oyetibo, strongly objected to the introduction of an insurance certificate as evidence. They argued that the alleged fund diversion for Umza Airline was not included in the original six charges, making the document irrelevant to the current trial.

Justice Dada upheld the objection, ruling that the certificate could not be admitted since the specific transaction was not part of the formal charges.
The trial is set to continue on 26 February 2026.

Read also:Arik Air loan dispute: Former AMCON executive testifies in ongoing case

 

Backstory
The EFCC case against Ahmed Kuru, former Asset Management Corporation of Nigeria (AMCON) MD, is concerning an alleged diversion of N4.9bn and N76bn fraud, originating from investigations into the management of Arik Air while under receivership.

The probe alleges that AMCON officials and the receiver manager diverted funds and aircraft to a new entity, NG Eagle.

The investigation was initiated following a petition submitted by Sir Johnson Arumemi-Ikhide, the promoter/shareholder of the debt-ridden Arik Air, accusing the receiver manager and AMCON officials of mismanagement.

EFCC investigators allege that Arik Air assets, staff, and resources were diverted to create NG Eagle.

The case specifically involves Ahmed Kuru, former AMCON MD, Kamilu Omokide, former receiver manager and others, with allegations of sale of aircraft, and non-disclosure of funds, according to EFCC witnesses.