Amanze Chinonye
Fresh details have emerged in the ongoing trial of former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, as an EFCC witness on Monday narrated how funds, staff and operational assets belonging to the defunct Arik Air were allegedly diverted to establish NG Eagle Airlines while the airline was under AMCON receivership.
Testifying before Justice Mojisola Dada of the Special Offences Court in Ikeja, Lagos, EFCC Investigative Officer Bawa Usman Kaltungo alleged that N4.9 billion belonging to Arik Air was moved into the new airline under the management of the defendants. The case, already one of the aviation sector’s most consequential corruption trials, further exposes cracks in Nigeria’s receivership and asset-recovery framework.
Prime Business Africa reports that Kuru is standing trial alongside AMCON-appointed Receiver Manager Kamilu Alaba Omokide, former Arik CEO in receivership Captain Roy Ilegbodu, Union Bank Plc, and Super Bravo Limited on a six-count charge bordering on conspiracy, stealing, and abuse of office.
Join our WhatsApp ChannelKaltungo told the court that documents obtained during the EFCC investigation including statements by Arik’s former Chief Financial Officer, Jonathan Sani showed that N4.5 billion from Arik’s accounts was allegedly deployed to fund NG Eagle Airlines, which he said the defendants controlled. He added that Arik’s staff, salary payments, and operational expenses were moved to the new airline even as Arik remained under AMCON’s supervision.
Although the witness said the findings were backed by documentary evidence, he struggled under cross-examination to establish direct ownership or aircraft identity in a flash drive containing images of vandalised planes tendered by the prosecution as evidence.
READ ALSO : Arik Air Operated 10,699 Flights, Airlifted 2.2m Passengers In 2024 – NCAA Report
AMCON Threatens To Liquidate Arik Air, Other Firms Over ₦455bn Debt
AMCON’s Receivership Over Arik Air, Operations Intact – Court
How Arik Air Collapsed and Gave Birth to NG Eagle
Arik Air, once Nigeria’s largest carrier with an expansive domestic and international network, spiralled into massive debt by 2016. The airline reportedly owed over N300 billion to lenders and service providers, alongside heavy obligations to fuel suppliers, aircraft lessors, and staff.
On February 9, 2017, AMCON took over Arik, appointing Captain Ilegbodu as CEO and Omokide as Receiver Manager. AMCON justified the intervention as necessary to prevent the airline’s collapse.
By 2020, AMCON quietly began building a new airline NG Eagle described as a “clean slate” carrier free of Arik’s legacy debts. However, the restructuring generated immediate controversy as NG Eagle was built using assets, staff, and infrastructure originating from Arik. Several aviation unions and former Arik shareholders accused AMCON of “asset-stripping,” though AMCON denied wrongdoing.
Regulatory hesitations soon emerged. The Nigerian Civil Aviation Authority (NCAA) delayed NG Eagle’s Air Operator Certificate (AOC) over unresolved concerns about ownership and the legal framework for transferring aircraft and operational assets from Arik.
A major point of contention was NG Eagle’s share structure. Kaltungo testified that the Receiver Manager’s nominee held “just one share out of a billion-share structure,” with AMCON allegedly holding majority shares. Defence lawyers insisted that the witness attempted to mislead the court by suggesting the Receiver Manager owned or sold NG Eagle shares solely and unilaterally.
What the EFCC Claims and What It Has Not Yet Proven
One of the charges against the defendants accuses Union Bank of allegedly making false statements in 2011 to induce the sale of Arik’s loans to AMCON, leading to the transfer of a “bogus figure” of N71 billion to AMCON.
Another charge alleges that Kuru, Omokide, and Ilegbodu “fraudulently converted” N4.9 billion belonging to Arik in 2022 for the establishment and running of NG Eagle.
While the EFCC maintains that its financial trail shows clear movement of funds from Arik to NG Eagle, the prosecution has so far faced challenges in establishing a direct nexus between the defendants’ actions and criminal intent, particularly regarding aircraft ownership, asset transfer legality, and the extent of AMCON’s corporate authority while managing a distressed airline.
Nonetheless, the EFCC insists the transfers violated established receivership procedures and amounted to abuse of office.
Passport Release, Adjournments
During proceedings, counsel for the second and third defendants sought temporary release of their international passports to renew documents and seek medical treatment abroad. Justice Dada granted the request on the condition that the passports be returned to the registry by January 2, 2026.
Earlier hearing dates were fixed for January 2 and 3, 2026, but the court has now slated further proceedings for February 25 and 26, 2026, when the examination-in-chief of the fourth prosecution witness is expected to continue.
As the case progresses, industry observers note that the outcome could reshape future airline restructurings, the limits of AMCON’s powers, and the broader question of whether assets of distressed private companies can be legally repurposed under receivership without violating ownership rights.
Prime Business Africa will continue to follow the trial and provide verified updates as the proceedings advance.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
