Former AMCON Director Testifies Arik Air’s Union Bank Loan Was Non-Performing Before His Exit in 2015

A former Executive Director of Credits at the Asset Management Corporation of Nigeria (AMCON), Muhammed Jega, on Wednesday told the Lagos State Special Offences Court in Ikeja that the loan facility Union Bank Plc granted to Arik Air for aircraft purchase had become non-performing before he left AMCON in 2015.

Jega appeared as a prosecution witness in the ongoing trial of former AMCON Managing Director, Ahmed Kuru; former Receiver Manager of Arik Air, Kamilu Omokide; Arik Air CEO, Roy Ilegbodu; Union Bank Plc; and Super Bravo Limited. The defendants are being prosecuted by the Economic and Financial Crimes Commission (EFCC) for alleged N76 billion and $31.5 million fraud involving theft, abuse of office, and dishonest acquisition of property. Union Bank also faces an additional charge of providing false information to a public officer.

During cross-examination by defence counsel, Olalekan Ojo (SAN), Jega said that while AMCON did not submit a formal petition to security agencies over Union Bank’s alleged misrepresentation in the sale of Arik’s loans, the commission sent a letter to the EFCC instead. “Up to the time I left AMCON, the loans taken by Arik Air were still unpaid,” he said.

He explained that he was unaware of any directive from the Central Bank of Nigeria (CBN) relating to Union Bank’s loan to Arik before his exit and could not confirm whether Arik had settled its foreign loans at the time. According to him, “Union Bank told me in a meeting in London that Arik Air had paid off the loan, but we later discovered that the facility had been granted without collateral.”

Jega added that AMCON conducted its due diligence only after purchasing Arik’s loans from Union Bank. “The loans were meant for aircraft purchases, but Union Bank did not follow standard banking procedures during the sale of Arik’s loans to AMCON,” he stated.

Under further cross-examination by another defence counsel, Tayo Oyetibo (SAN), Jega admitted that although Arik Air verbally questioned AMCON’s involvement, the airline did not lodge a formal protest. He also said he verbally informed some AMCON board members of Union Bank’s alleged non-disclosure but did not submit a written report.

“Arik Air later requested that its loan be restructured, citing business challenges, and I forwarded the request to AMCON management for consideration,” he added.

At an earlier hearing on June 30, 2025, Jega had testified that the Arik loan was performing when AMCON acquired it. However, under renewed questioning by Prof. Taiwo Osipitan (SAN), he admitted that the loan had become non-performing by the time he left the corporation in 2015.

He told the court that AMCON purchased N85 billion worth of Arik’s debt from Union Bank and Bank PHB and later provided an additional N11 billion in working capital, which the airline also failed to repay. “Although I was the Executive Director of Credits and acted with board approval, I never saw the full loan purchase agreement detailing Arik’s indebtedness, especially the one from Union Bank,” he said.

Jega revealed that Union Bank presented the loans as performing, supported by meeting minutes from discussions in London between AMCON and Arik’s management. “It was only after the purchase that we discovered discrepancies in the loan documentation,” he testified.

He further disclosed that Arik and its promoters owed AMCON several other outstanding loans beyond those currently under investigation. Responding to questions from Ahmed Kuru’s counsel, Olasupo Sasore (SAN), Jega confirmed that Arik’s chairman had once offered him a consultancy role, which he declined on professional grounds.

Justice Mojisola Dada adjourned the case to November 28, 2025, for the continuation of cross-examination and further hearing.