EFCC Witness Alleges Loan Irregularities in Arik Air Case

On Tuesday, Bawa Usman Kaltungo, an Assistant Director at the EFCC, testified in the Lagos Special Offences Court regarding alleged irregularities in a loan transaction involving Arik Air. He claimed that Union Bank Nigeria Plc acted merely as a guarantor rather than a lender in a foreign loan arrangement.

Kaltungo stated that the arrangement, which began around 2010, was later distorted, leading to the mischaracterization of loans and their eventual conversion into non-performing loans. He highlighted that Arik Air had repaid 38% of the loan, yet it was still classified as non-performing, which did not accurately reflect the financial state of the airline.

The trial includes former executives such as Ahm Kuru and Kamilu Omokid, with the case adjourned until May 18-19, 2026. Kaltungo also noted significant discrepancies in financial records and asset disposals, raising concerns about the integrity of the transactions.