A former Executive Director, Credits, at the Asset Management Corporation of Nigeria, Mr. Muhammed Abbas Jega, on Monday told an Ikeja Special Offences Court that the debt owed by Arik Air to AMCON eventually became a non-performing loan.
Jega disclosed this while testifying at the resumed trial of the former AMCON Managing Director, Ahmed Kuru, who is facing charges alongside four others in connection with alleged fraud amounting to N76bn and $31.5m.
The other defendants are the former Receiver Manager of Arik Air Limited, Kamilu Omokide; the Chief Executive Officer of the airline, Roy Ilegbodu; Union Bank; and a company, Super Bravo Ltd.
They are being tried on five counts bordering on theft, abuse of office, and dishonest acquisition of another’s property. Union Bank is specifically charged with making false statements to a public officer, with the charges filed by the Economic and Financial Crimes Commission.
During his continued cross-examination as the third prosecution witness, Jega informed the court that Arik’s indebtedness to AMCON was classified by regulatory authorities as non-performing.
At the previous sitting, Jega had maintained that the loan acquired by AMCON from Union Bank and Bank PHB during the first phase of the Eligible Bank Assets Purchase Programme was performing.
However, under further questioning from the first defence counsel, Prof. Taiwo Osipitan (SAN), the witness recanted, admitting that the debt, which was bought for N85bn, later became non-performing.
Jega further revealed that AMCON disbursed an additional N11bn to Arik as working capital, apart from the initial debt purchase.
He told Justice Mojisola Dada that the Bank of Industry also extended intervention funds to the airline, which AMCON guaranteed.
“Despite the substantial financial support, Arik could not fulfil its obligations to AMCON by the time I left,” Jega stated.
He explained that although he acted with the board’s approval in his capacity as Executive Director, he never personally reviewed the loan purchase agreement detailing the credit specifics of the Arik loan, particularly the portion originating from Union Bank.
“Union Bank had claimed the loans were performing. They even documented a meeting in London, which they convened and later communicated to AMCON. But it was during that meeting that it became apparent there were issues with the loan,” Jega told the court.
He alleged that Union Bank misled AMCON regarding the true status of the Arik facility. However, he could not provide a clear explanation for his failure to escalate the matter to either AMCON’s board or the Central Bank of Nigeria.
Jega also confirmed that Arik and its promoter had other outstanding loan obligations to AMCON aside from those backed by guarantees.
While responding to questions from Mr. Olasupo Sasore (SAN), counsel to the first defendant, Ahmed Kuru, Jega acknowledged that he had once been approached by Arik’s chairman to assume a consultancy role at the airline.
“AMCON was already encountering challenges with Arik when the consultancy offer came. I was advised to decline the offer,” he said.
The witness also told the court that his professional dealings with clients remained above board.
After listening to the witness, Justice Dada adjourned the matter to July 1, 2025, for continuation of the trial.
