N76bn fraud case: EFCC witness says FG asked AMCON to intervene in Arik debt crisis

By Abubakar Yunusa

Bawa Kaltungo, an investigator with the Economic and Financial Crimes Commission (EFCC), has told the special offences court sitting in Ikeja, Lagos, that the federal government directed the Asset Management Corporation of Nigeria (AMCON) to intervene in Arik Air affairs.

In January 2025, Ahmed Kuru, ex-managing director (MD) of AMCON, was arraigned alongside Roy Ilegbodu, managing director of Arik Air (third defendant), Kamilu Omokide, receiver manager of Arik Air (first defendant), Union Bank Plc (fourth defendant), and Super Bravo Limited (fifth defendant), before the Lagos court.

The defendants were accused of defrauding Arik Air (currently in receivership) of N76 billion and $31.5 million by the EFCC.

In February 2017, the airline was taken over by the federal government through AMCON due to the company’s huge debt profile, which was over N300 billion.

Testifying as the fourth prosecution witness when the trial resumed on Tuesday, Kaltungo said the directive involved the board of governors of the Central Bank of Nigeria (CBN), the ministries of finance and aviation, as well as Yemi Osinbajo, who was then acting president.

Kaltungo, who was led in evidence by Wahab Shittu before Mojisola Dada, the judge, read from extracts of the CBN board of governors minutes relating to AMCON’s intervention in the airline.

“…after further discussion, the members agreed as follows, (i) that the CBN should carry out the Federal Government directives in intervening in the affairs of Arik Airline. (ii) Payment of the sum of N1.5billion working capital to the airline, and that AMCON should be presenting periodic accounts and reports to the Committee of Governors…,” the document reads.

The witness further told the court that the former AMCON MD had briefed the board of governors that Arik accounted for about 60 percent of passenger traffic in the country and could collapse within two weeks if not rescued.

Kaltungo said Kuru informed the meeting that the airline had paid substantial sums to its technical partner, Messrs Lufthansa, and allowed them to leave the country — a development he said suggested that the promoter, Johnson Arumemi-Ikide, had abandoned the airline.

He said Kuru held discussions with three major commercial banks that were creditors to Arik, and that there was consensus that the CBN should intervene.

The witness also read from the minutes that the federal ministry of finance informed the ex-AMCON MD that Standard Chartered Bank had threatened to seize two aircraft over unpaid lease obligations, adding that the airline’s insurance policy was also due for renewal, and “all hands should be on deck” to ensure that the policy was renewed so that the airline would not be grounded.

According to the testimony, the then ministers of finance and aviation had raised concerns over the airline’s viability but agreed that it was “too big to fail” and should be of great concern to the federal government.

Kaltungo told the court that the ex-AMCON MD was subsequently invited to a meeting at the presidency, where it was agreed that immediate government intervention was required.

He said Osinbajo was briefed and directed that necessary measures be deployed immediately to rescue the airline.

The trial was adjourned to February 26, 2026, for further hearing.