A prosecution witness in the trial of former Asset Management Corporation of Nigeria (AMCON) Managing Director Ahmed Kuru has told a Lagos court that Arik Air had already repaid 38 per cent of its foreign loan obligations before the airline was taken over by the agency. Bawa Kaltungo, a zonal director of the Economic and Financial Crimes Commission (EFCC), gave testimony before Justice Mojisola Dada on Tuesday, providing fresh details about the financial state of the carrier prior to AMCON’s intervention in 2017.
Kaltungo told the court that while Arik had substantially serviced the foreign facility, a dispute arose over a N51 billion guarantee that Union Bank, acting as guarantor for the foreign credit, allegedly converted without remitting the funds to the foreign lenders. “Arik has paid 38 per cent of its loan to foreign creditors, but when Union Bank converted the Arik guarantee of N51 billion, they did not pay the foreign creditors from the funds,” he said.
The witness further stated that Union Bank did not directly lend money to Arik, as the facility had been obtained from foreign institutions, including HSBC, and was being serviced by the airline until June 2010. A letter recovered during investigations and addressed to former Arik chairman Johnson Arumemi‑Ikhide suggested the loan remained performing at the time. Under cross‑examination, however, Kaltungo acknowledged that no funds were traced to the accounts of the first and second defendants and that the EFCC did not engage a forensic accountant to determine the full status of Arik Air’s indebtedness. He insisted that his position as lead investigator was sufficient, stating that “there was no need for a forensic audit”.
Kuru is standing trial alongside Kamilu Omokide, Roy Ilegbodu, Union Bank of Nigeria and Super Bravo Limited over an alleged fraud involving N76 billion and $31.5 million. They face six counts of conspiracy, stealing and abuse of office.
The latest testimony raises important questions about the financial health of major corporate assets before state intervention. If Arik was servicing its foreign loans at the time of takeover, the justification for AMCON’s sweeping action could face renewed scrutiny. The case also highlights broader concerns about the transparency of asset management decisions that have significant implications for Nigeria’s investment climate. Foreign creditors watch such proceedings closely, and any perception that performing loans were unfairly treated could affect future access to international credit lines for Nigerian businesses.
