A prosecution witness for the Economic and Financial Crimes Commission (EFCC) has told a Lagos court that an estimated N4.9 billion was transferred from the accounts of Arik Air Limited to finance the operations of a newer airline, NG Eagle.
The testimony was given on Monday at the Special Offences Court in Ikeja, Lagos, in the ongoing N76 billion and $31.5 million fraud trial involving former officials of the Asset Management Corporation of Nigeria (AMCON) and Arik Air.
Led in evidence by prosecution counsel Wahab Shittu, EFCC investigative officer Bawa Kaltungo stated that a review of financial records indicated funds from Arik Air, which is under receivership, were not properly accounted for during NG Eagle’s establishment. Kaltungo cited testimony from Jonathan Sani, Arik Air’s former Chief Financial Officer, which allegedly revealed how N4.5 billion was diverted from Arik to fund the new airline.
The witness further claimed the total amount channelled reached N4.9 billion. He also alleged that staff were moved from Arik Air to NG Eagle, with their salaries and operational expenses continuing to be paid by the indebted Arik Air.
The defendants in the case include Ahmed Kuru, former Managing Director of AMCON; Roy Ilegbodu, Managing Director of Arik Air; Kamilu Omokide, Receiver Manager of Arik Air; Union Bank Plc; and Super Bravo Limited.
They are jointly accused by the EFCC of defrauding Arik Air of the monumental sums while the airline was under AMCON’s management. The government had taken over Arik Air in February 2017 due to debts exceeding N300 billion.
Kaltungo explained that the setup for NG Eagle involved the receiver manager’s nominee holding a shareholding of “one unit within a billion-share structure,” indicating a single, nominal share while AMCON remained the majority shareholder. However, under cross-examination, the witness faced challenges.
He could not directly link his claims of financial diversion to any specific fraudulent act by the defendants. He also clarified that while he suggested the first defendant sold shares unilaterally, the individual only held that one nominee share.
The court admitted several pieces of evidence, including a certified true copy of the ex-parte order that authorized the appointment of the receiver manager over Arik Air. The judge granted a request from counsel for the second and third defendants for the temporary release of their clients’ passports for renewal and medical purposes, ordering their return by January 2, 2026. The trial has been adjourned to February 25 and 26, 2026, for the continuation of the trial and further examination of the witness.
Discussion about this post