Arik Air Repaid 38% of Loans Before AMCON Takeover

During a trial at the Special Offences Court in Ikeja, Lagos, Bawa Usman Kaltungo, the zonal director of the Economic and Financial Crimes Commission (EFCC), testified that Arik Air repaid 38% of its foreign loan obligations prior to the takeover by the Asset Management Corporation of Nigeria (AMCON). The trial involves former AMCON Managing Director Ahm Kuru and four others, who face allegations of a ₦76 billion and $31.5 million fraud.

Kaltungo explained that the EFCC's investigation revealed that Union Bank acted as a guarantor for loans, amounting to ₦51 billion, linked to Arik Air, which failed to remit funds to foreign creditors. He noted that the loans were facilitated until June 2010, and despite the investigation, the EFCC did not conduct a forensic accounting to determine the full extent of Arik Air's indebtedness.

The case has been adjourned until May 18 for continued cross-examination.