A prosecution witness testified Tuesday that Arik Air had repaid 38 percent of its foreign‑loan obligations before the airline was placed under the Asset Management Corporation of Nigeria (AMCON). The testimony was given at the Special Offences Court in Ikeja, Lagos, where former AMCON Managing Director Ahmed Kuru and several co‑accused are facing charges of conspiracy, theft and abuse of office linked to an alleged N76 billion ($31.5 million) fraud.
The witness, EFCC investigator and Acting Zonal Director for Lagos Zonal Directorate 2, Bawa Usman Kaltungo, appeared as the fourth prosecution witness (PW4). He was examined in chief by prosecution counsel Wahab Shittu (SAN) after the hearing resumed on Tuesday.
Kuru, former AMCON head, is being tried alongside Kamilu Alaba Omokide, Captain Roy Ilegbodu, Union Bank of Nigeria Plc and Super Bravo Limited. The EFCC alleges the defendants colluded to misappropriate and convert funds tied to Arik Air’s loan facilities. One count accuses Union Bank of making false representations to AMCON in 2011 about the status of Arik’s loans and guarantees, leading to the transfer of an alleged N71 billion liability to AMCON. Another count alleges Kuru, Omokide and Ilegbodu fraudulently converted N4.9 billion belonging to Arik Air for the benefit of NG Eagle Limited in 2022.
During his testimony, Kaltungo referred to Exhibit P52, a letter recovered from Union Bank addressed to Arik Air’s Executive Chairman and dated 4 October 2010. The document, titled “Advice on Maturing Quarterly Repayment Obligations Second Airbus A340/500/MRM 912,” shows that Arik Air was making quarterly repayments on its foreign loan. Kaltungo said the letter proves a repayment was made in December 2010 and that the loan was performing at that time.
He further alleged that Union Bank illegally converted a guarantee of N51 billion into a loan and sold it to AMCON, misclassifying it as non‑performing. Despite the conversion, Kaltungo claimed the airline had already paid 38 percent of the foreign loan, yet Union Bank did not forward the funds to the foreign creditors. He added that Union Bank, acting as guarantor, failed to discharge its obligations, and that the loan facility originated from foreign institutions such as HSBC and was serviced by Arik Air until June 2010.
Another letter recovered by investigators, addressed to former Arik Air Chairman Johnson Arumemi‑Ikhide, also indicated the loan was performing before the AMCON takeover. Regarding payments after the airline entered receivership on 8 March 2016, Kaltungo said only about N2 billion was recovered from the sale of Arik shares, which were revalued at $105.7 million (approximately N32 billion). He noted that N9.2 billion of the proceeds were applied to the loan, leaving over N28 billion unaccounted for.
Under cross‑examination by defense counsel Prof. Taiwo Osipitan (SAN), Kaltungo acknowledged that no funds were traced directly to the accounts of the first and third defendants. When asked about Exhibit P51, he explained that it was offered to demonstrate the EFCC’s professional and unbiased investigative approach.
Justice Mojisola Dada adjourned the trial until 18 May 2026 for further cross‑examination. The case remains a focal point in Nigeria’s effort to address large‑scale financial misconduct involving state‑linked entities.
