Ex-Executive Director Recants, Tells Court Arik Air’s Multi-Billion-Naira Loan Was ‘Non-Performing’ Before His 2015 Exit

The ongoing N76 billion fraud trial involving former Asset Management Corporation of Nigeria (AMCON) Managing Director, Ahmed Kuru, took a new turn after a key prosecution witness, Mr. Muhammed Abbas Jega, an ex-Executive Director of Credits at AMCON, recanted his earlier testimony regarding the status of Arik Air’s colossal debt.

Jega, testifying before the Lagos State Special Offences Court, Ikeja, admitted under cross-examination that the loan facility acquired by AMCON from Union Bank on behalf of Arik Air had become a Non-Performing Loan (NPL) before his departure from the corporation in 2015. This statement contradicts his previous assertion in the same court that the loan was performing when AMCON initially purchased it.

The witness detailed that AMCON acquired approximately N85 billion worth of Arik’s debt from Union Bank and Bank PHB as part of the Eligible Bank Assets (EBA) programme. Furthermore, AMCON injected an additional N11 billion as working capital to support the troubled airline. However, Jega confirmed that despite this significant financial support, Arik Air was unable to meet its repayment obligations by the time he exited the corporation.

The evidence is central to the Economic and Financial Crimes Commission (EFCC)’s case, which alleges that Union Bank misrepresented a foreign loan guarantee as an NPL, prompting AMCON’s multi-billion naira acquisition. While Jega maintained that Union Bank misled AMCON regarding the true nature of the facility at the time of purchase, his final admission about the loan’s non-performing status upon his exit solidifies the narrative of Arik Air’s deep financial distress, a state that ultimately led to AMCON taking over the airline in 2017.