The Economic and Financial Crimes Commission, EFCC, on Friday told the Lagos State Special Offences Court, Ikeja, that Arik Air Ltd was converted into a “cash cow” by Asset Management Corporation of Nigeria, AMCON, appointed Receiver/Managers, leading to massive losses put at more than N350 billion.

Testifying before Justice Morenike Dada in the ongoing trial of former AMCON Managing Director, Ahmed Kuru, and four others, the Acting Director of the EFCC Kaduna Zonal Office, Bawa Usman Kaltungo, said investigations showed that Arik Air’s financial collapse accelerated immediately after AMCON took over the airline.

Kuru is standing trial alongside former Receiver Manager of Arik Air, Kamilu Omokide; the airline’s CEO, Captain Roy Ilegbodu; Union Bank Plc; and Super Bravo Ltd.

They are accused of defrauding the airline of N76 billion and $31.5 million.

Kaltungo told the court that loans which were previously performing were transferred to AMCON “without justification”, worsening Arik Air’s financial crisis.

He added that Union Bank had no evidence of disbursing N71 billion to the airline, describing the figure sold to AMCON as fictitious.

According to him, Union Bank merely guaranteed foreign loans obtained by Arik Air, many of which were performing until they were converted into local obligations without consultation with the airline.

He said the receivership marked the beginning of Arik’s rapid decline, describing the process as “a failure that facilitated mismanagement and financial loss”.

The EFCC witness stated that 25 aircraft engines belonging to Arik Air were abandoned abroad, while investigators uncovered contracts awarded to companies that provided no services.

He listed Olympus Airways, Clobek Nigeria Ltd and Eznis Airways LLC among entities that received billions under questionable lease agreements.

He also told the court that two aircraft valued at $78 million were dismantled and sold without regulatory approval or consent from the owners.

Kaltungo said several statutory filings, including annual returns, were not submitted to the Corporate Affairs Commission, CAC, under the receivership.

During inspections of Arik facilities, he said his investigation team met vandalised aircraft, missing engines, spare parts and consumables.

He added that the staff told investigators that engines sent abroad for repairs were never returned, while leased engines were installed in their place.

According to him, billions generated during the receivership were not applied to settling outstanding loans.

He alleged conflicts of interest, diversion of proceeds and arbitrary asset transfers involving Super Bravo Ltd and NG Eagle Ltd.

He said more than 10 aircraft inspected by the EFCC had essential components removed under the instructions of Receiver/Managers and senior technical staff.

“Spare parts, including CRJ1000 engines, propellers and tyres, were unaccounted for,” he added.

Kaltungo also cited a $950,000 aircraft lease agreement with Olympus Airways which investigators found never existed, alongside unexplained payments to Clobek Nigeria Ltd and Eznis Airways LLC.

The EFCC investigator maintained that several performing loans became non-performing after AMCON’s takeover.

For instance, he explained that a Zenith Bank facility that had been in good standing deteriorated during receivership, despite Arik’s billion-naira revenue streams between 2017 and 2019.

He added that international lenders, including HSBC and Union Bank, had confirmed as far back as 2011 that Arik’s loan repayments were up to date.

The court also heard that Arik’s fleet crashed from 25 aircraft to just two under AMCON’s supervision.

Kaltungo concluded that the pattern of conduct during receivership reflected asset stripping, diversion of funds, abuse of process and deep-seated mismanagement.

Justice Dada adjourned the trial to December 2 and February 26–27, 2026, for continuation.

(Vanguard)