Ex-AMCON Director Exposes Arik Loan Cover-Up in ₦76 Billion Fraud Trial
In a revealing testimony before Justice Mojisola Dada of the Special Offences Court in Ikeja, Lagos, the third prosecution witness in the ongoing fraud trial of former AMCON Managing Director Ahmed Kuru and four others disclosed major irregularities surrounding a multi-billion-naira loan involving Arik Air.
The witness, Abbas Jega, a former Executive Director of Credit at the Asset Management Corporation of Nigeria (AMCON), told the court that AMCON had acquired over 4,000 non-performing loans, one of which was a contentious facility from Union Bank tied to Arik Air. Jega stated that AMCON paid Union Bank for the loan in December 2011, believing it was a performing facility, only to later uncover that it was in fact a foreign loan guarantee—not a typical bank loan.
Jega said AMCON was later invited to a meeting in London with Union Bank, HSBC, and EXIM Bank on February 4, 2011. At that meeting, Union Bank disclosed that AMCON would take the lead in restructuring Arik Air’s foreign debts, following a directive from the Central Bank of Nigeria (CBN).
“Union Bank had exceeded its single obligor limit and offloaded a loan it misrepresented,” Jega testified. “Once AMCON learned the truth, we demanded a refund. We agreed Union Bank would repay the funds, while AMCON assumed responsibility for Arik’s obligations to foreign lenders.”
He noted that Arik Air initially resisted AMCON’s intervention, insisting that its deal was exclusively with Union Bank. However, citing CBN regulations prohibiting AMCON debtors from securing new loans, AMCON stepped in, restructured the airline’s debt, and injected further funds to keep it afloat.
Jega also revealed that AMCON considered the aviation sector especially high-risk. In Arik’s case, the corporation proposed a debt-to-equity swap and management takeover. Arik initially agreed to appoint a new Managing Director and Chief Financial Officer but failed to follow through.
He also criticized Arik’s self-valuation at $3.7 billion, calling it inflated and unrealistic. Attempts to settle on an independent valuation failed before his exit from AMCON.
During cross-examination by Prof. Taiwo Osipitan (SAN), counsel to Ahmed Kuru and Kamilu Omokide, Jega clarified that neither defendant was present at the London meeting or involved in negotiations. He also confirmed that neither had any role in formulating AMCON’s decisions or the CBN’s policy restricting further credit to AMCON debtors.
When asked about his claim that Arik was “over-trading,” Jega explained that it referred to operating beyond available working capital.
Justice Dada adjourned the case to June 30, 2025, for the continuation of trial.
