A former Executive Director of Credits at the Asset Management Corporation of Nigeria (AMCON), Mr. Muhammed Abbas Jega, has testified that the debt owed by Arik Air to AMCON falls under the category of non-performing loans.

Jega made the disclosure during the ongoing trial of the former AMCON Managing Director, Ahmed Kuru, and four others charged with alleged fraud involving N76 billion and $31.5 million.

The other defendants include former Receiver Manager of Arik Air Ltd., Kamilu Omokide; the airline’s Chief Executive Officer, Roy Ilegbodu; as well as representatives from Union Bank and Super Bravo Ltd.

They face a five-count including theft, abuse of office, and dishonest acquisition of property. Union Bank Plc is also accused of making false statements to a public officer.

Under cross-examination, Jega explained that the Arik debt, purchased by AMCON in the first phase of the Eligible Bank Asset (EBA) purchase program, was initially classified as performing. However, by the time he left AMCON in 2015, the loan had become non-performing.
He told the court that AMCON purchased N85 billion of Arik’s debt from Union Bank and Bank PHB and provided an additional N11 billion as working capital. Despite these funds, and intervention loans guaranteed by AMCON through the Bank of Industry (BOI), Arik failed to meet its repayment obligations.

Jega also revealed that Union Bank had initially represented all loans as performing, but later communications—including a meeting in London—revealed discrepancies and issues with the loan purchase, which Union Bank had not fully disclosed to AMCON.
He admitted that he never saw the loan purchase agreement outlining specific credit details, nor did he escalate the irregularities to AMCON’s board or the Central Bank of Nigeria.

Additionally, Jega confirmed that Arik Air and its promoters held other loans with AMCON, besides those guaranteed.
When questioned by the defense counsel for Ahmed Kuru, Jega disclosed that the chairman of Arik Air once offered him a consultancy role at the airline, but he declined due to existing issues within AMCON and maintained his professional independence.

The trial judge, Justice Mojisola Dada, adjourned the case to July 1 for further hearing.