The trial of the former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, and four others continued at the Special Offences Court in Ikeja, Lagos, with a former AMCON Executive Director, Mr Abbas Muhammed Jega, appearing as the third prosecution witness on Tuesday.
The case, filed by the Economic and Financial Crimes Commission (EFCC), involves allegations of financial misappropriation totalling ₦76 billion and $31.5 million. Other defendants in the high-profile trial include Kamilu Omokide, a former receiver manager for Arik Air Ltd, Captain Roy Ilegbodu, the current CEO of Arik Air, Union Bank Plc, and Super Bravo Limited.
Presiding over the matter is Justice Mojisola Dada, who is expected to rule on key evidentiary submissions in the coming weeks.
While testifying, Jega provided fresh insights into the circumstances surrounding the financial dispute between Arik Air and Union Bank, which eventually led to AMCON taking over the non-performing loan.
He told the court that Union Bank had earlier informed AMCON that the Central Bank of Nigeria (CBN) had advised them to collapse Arik’s bank guarantee into a loan facility, due to the huge exposure the bank had with the airline.
According to Jega, the loan had exceeded the single obligor limit prescribed by the apex bank, prompting a decision by Union Bank to offload the facility to AMCON as a non-performing asset.
Jega also recounted how Sir Johnson Arumemi-Ikhide, Chairman of Arik Air, had allegedly avoided meetings and communication with AMCON, insisting that he did not owe Union Bank directly and therefore had no business with AMCON.
“He (Arumemi-Ikhide) believed he did not have a non-performing loan (NPL) with Union Bank, so he kept his distance. He wasn’t cooperating with AMCON,” Jega said.
The court heard that Union Bank, under regulatory pressure from the CBN, handed over the facility to AMCON, leading to the takeover of Arik Air’s management and operations in 2017.
The EFCC has accused the defendants of embezzling funds, mismanaging the receivership process, and diverting large sums of money meant for the stabilization of the airline’s finances after AMCON took control.
Among other allegations, the EFCC claims that funds generated from Arik Air’s operations were moved into unauthorised accounts, and that due process was not followed in the appointment of some key managers and contractors.
Captain Roy Ilegbodu, who was appointed CEO of Arik Air following AMCON’s intervention, is also standing trial for alleged conspiracy and criminal breach of trust.
Kamilu Omokide, who served as the receiver manager, is accused of colluding with others to siphon part of the recovery funds and failing to account for critical financial decisions during his time overseeing the airline’s affairs.
Meanwhile, Union Bank Plc and Super Bravo Ltd, both corporate defendants, are being tried over their roles in allegedly facilitating fraudulent transactions and aiding the diversion of public funds.
Jega’s testimony is seen as critical to the prosecution’s case, as he had oversight of several key decisions during the period under review and was part of the AMCON team that monitored compliance with asset recovery guidelines.
Justice Mojisola Dada adjourned the matter to allow for cross-examination of the witness by the defence counsels.
The trial is one of several ongoing efforts by the EFCC and other financial regulators to hold former public office holders and corporate executives accountable for their role in the mismanagement of public assets and bailout funds.
As the matter progresses, more witnesses are expected to be called, including representatives from the CBN, aviation experts, and forensic auditors engaged during the AMCON takeover.
The case has drawn widespread public attention due to the involvement of high-profile figures and the impact of Arik Air’s receivership on Nigeria’s aviation sector.
