The legal battle surrounding Arik Air took a significant turn after the Court of Appeal upheld the legality of the Asset Management Corporation of Nigeria (AMCON)’s appointment of a Receiver-Manager over the airline.
The development emerged during proceedings at the Special Offences Court in Ikeja, Lagos, where former AMCON Managing Director, Ahmed Kuru, and other defendants are facing criminal charges.
During the hearing before Justice Mojisola Dada, the fourth prosecution witness, Bawa Usman Kaltungo, Director of EFCC Lagos
A major highlight of the proceedings was the admission of a Certified True Copy of a Court of Appeal judgment overturning an earlier ruling relied upon by Arik Air founder, Johnson Arumemi-Ikhide. The previous judgment had been used to argue that AMCON’s takeover of the airline was unlawful and premature.
The appellate court reaffirmed that AMCON acted within the law in appointing a Receiver-Manager and validated the authority exercised over the airline’s operations.
The criminal case against Kuru was initiated following a petition submitted by human rights lawyer Femi Falana on behalf of Arumemi-Ikhide. Also standing trial are former Arik Air Receiver-Manager Kamilu Omokide, former CEO Roy Ilegbodu, Union Bank of Nigeria Plc, and Super Bravo Limited.
Further court proceedings revealed that a Federal High Court had earlier upheld actions linked to the dismantling of one of Arik Air’s aircraft. Documents tendered before the court showed that the EFCC was previously found to have unlawfully detained Captain Samuel Caulcrick over his alleged involvement in dismantling a Boeing aircraft. The court awarded him N5 million in damages.
The defence presented the judgment as evidence challenging claims that AMCON and its Receiver-Manager lacked authority over the aircraft-related decisions.
The court also admitted an AMCON board resolution authorising the creation, transfer, and allocation of shares in NG Eagle.
Under questioning, EFCC witness Kaltungo acknowledged that investigators did not trace personal financial gains from the disputed transactions to Ahmed Kuru or Roy Ilegbodu. However, he maintained that approximately N4.9 billion generated from the sale of Arik Air assets was diverted into establishing NG Eagle rather than settling the airline’s debt obligations.
He further explained that although AMCON took operational control of Arik Air through receivership, ownership of the company remained with its shareholders.
“Even under receivership, Arik Air still belongs to the shareholders,” he stated.
A substantial portion of the proceedings focused on allegations surrounding the dismantling of a Boeing aircraft valued at approximately $31.5 million. Prosecutors alleged that the defendants abused their positions by approving actions that harmed the economic interests of both Arik Air and Nigeria.
Although Kaltungo admitted that no funds from the aircraft teardown were traced to the personal accounts of the accused persons, he insisted that the action remained unlawful regardless of financial benefit.
The case also involves allegations that Union Bank misrepresented Arik Air’s loan obligations, resulting in the transfer of an alleged fictitious N71 billion debt figure to AMCON.
All defendants have denied the allegations and pleaded not guilty.
Justice Dada adjourned the matter to July 7, 2026, for the continuation of cross-examination, while additional hearing dates have been fixed for October.