AMCON Arik loan fraud case deepens as witness testifies Union Bank gave aircraft loan without collateral, and Arik’s loan was non-performing by 2015

AMCON Arik loan fraud case took a significant turn on Wednesday as Muhammed Jega, a former Executive Director of Credits at the Asset Management Corporation of Nigeria (AMCON), told the Lagos State Special Offences Court, Ikeja, that Arik Air’s loan had already become non-performing before he left the agency in 2015.

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Jega, who appeared as a prosecution witness in the case filed by the Economic and Financial Crimes Commission (EFCC), said the facility granted by Union Bank Plc to Arik Air for aircraft acquisition was not properly secured, and the bank misrepresented the loan’s status when AMCON purchased it.

The EFCC is prosecuting former AMCON Managing Director Ahmed Kuru, Arik Air CEO Roy Ilegbodu, former Receiver Manager Kamilu Omokide, Union Bank Plc, and Super Bravo Limited for alleged theft, abuse of office, and dishonest acquisition of property, totalling N76 billion and $31.5 million.

Union Bank faces an additional count for allegedly making false statements to a public officer.

Under cross-examination by defence counsel Olalekan Ojo (SAN), Jega admitted that AMCON did not formally petition any security agency over Union Bank’s actions but only sent a letter to the EFCC.

“Up to the time I left AMCON, the loans taken by Arik Air were still unpaid,” he testified.

He added that due diligence was only conducted by AMCON after purchasing the loan from Union Bank. “What Union Bank told me at the meeting in London was that Arik Air had paid the loan. But we later realised the loan had no collateral,” he said.

Jega disclosed that while Arik Air questioned AMCON’s involvement verbally, the airline never submitted a formal protest.

He also acknowledged that although he raised concerns about the loan’s structure and documentation, he did not file a written report to the AMCON board.

In an earlier hearing on 30 June 2025, Jega had stated that the loan was performing when AMCON acquired it. However, in a reversal during Wednesday’s session, he admitted the loan had gone bad before his exit in 2015.

He also revealed that AMCON purchased N85bn worth of Arik’s debt from Union Bank and Bank PHB and later provided an additional N11bn as working capital, which also remained unpaid.

“I never saw the detailed loan purchase agreement, especially the one from Union Bank,” Jega stated under questioning from Prof. Taiwo Osipitan (SAN), adding that misleading meeting minutes were used to support the loan’s status during the sale.

Responding to Olasupo Sasore (SAN), counsel to Ahmed Kuru, Jega confirmed that Arik’s chairman once offered him a consultancy role, which he declined after advice from colleagues.

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

Also read: Nigeria First Policy to Boost Manufacturing, Jobs

The unfolding AMCON Arik loan fraud case continues to expose deeper lapses in due diligence, regulatory oversight, and corporate governance within Nigeria’s financial and aviation sectors.