Lagos, Nigeria — A prosecution witness in the N76 billion and $31.5 million fraud trial involving Ahmed Kuru, a former managing director of the Asset Management Corporation of Nigeria (AMCON), has told a court that Arik Air had already repaid 38% of its foreign loan obligations before the airline was taken over.
Okay News reports that Bawa Kaltungo, an investigator with the Economic and Financial Crimes Commission, made the disclosure on Tuesday while testifying before Justice Mojisola Dada of the Special Offences Court sitting in Ikeja. Kuru is standing trial alongside Kamilu Alaba Omokide, Roy Ilegbodu, Union Bank of Nigeria Plc, and Super Bravo Limited on charges of conspiracy, stealing and abuse of office.
Kaltungo told the court that documentary evidence showed Arik Air was servicing its foreign loan before AMCON intervened. He referenced a letter dated October 4, 2010, sent by Union Bank to Arik Air‘s management, confirming payments made as recently as December 2010. He alleged that despite the loan’s performing status, Union Bank converted a N51 billion guarantee into a loan and sold it to AMCON as a non-performing asset. “This letter shows that the foreign loan was performing optimally at the time,” he said.
The EFCC investigator further alleged that Union Bank failed to remit funds to foreign creditors after converting the guarantee. Investigations revealed Arik Air had repaid 38% of the loan to foreign financial institutions including HSBC. “Union Bank withheld the N51 billion which ought to have been used to settle the foreign creditors,” he said. Kaltungo maintained that Union Bank did not directly extend any loan to Arik, noting the financing originated from foreign credit institutions.
Following AMCON‘s takeover of Arik Air in March 2016, the witness said only about N2 billion in loan servicing payments could be traced. Proceeds from the sale of three aircraft, valued at approximately $105.7 million (about N32 billion), were not fully accounted for. Only N9.2 billion was applied toward servicing the loan, leaving over N28 billion unaccounted for.
Under cross-examination by Taiwo Osinpitan, Kaltungo admitted no funds were traced to the personal accounts of the accused. One charge alleges Union Bank, in 2011, made false representations to AMCON regarding Arik Air‘s loan status, leading to the transfer of N71 billion. Another count accuses Kuru and others of converting N4.9 billion belonging to Arik Air to the benefit of NG Eagle Limited. Justice Dada adjourned the case until May 18, 2026.
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