Jega
A former Executive Director at the Asset Management Corporation of Nigeria (AMCON), Abbas Muhammed Jega, has testified in court that Arik Air never cooperated with AMCON in restructuring its debt.
Jega, who appeared as the third prosecution witness in the ongoing trial of former AMCON MD/CEO, Ahmed Kuru, and four others, alleged that Arik Air’s management refused to comply with agreements reached with AMCON.
According to Jega, AMCON acquired Arik Air’s debt from Union Bank after the airline’s exposure exceeded the single obligor limit allowable by the Central Bank of Nigeria.
However, Jega claimed that Arik Air’s Chairman, Sir Johnson Arumemi-Ikhide, avoided discussions with AMCON, believing that the agency had no authority over the airline’s debt.
Jega disclosed that AMCON offered Arik Air additional loan facilities to help the airline sort out its working capital problems, but the airline failed to meet its repayment obligations.
He also revealed that AMCON proposed a debt-equity swap and management control options to save the airline, but Arik Air rejected these proposals.
Under cross-examination, Jega confirmed that Kamilu Omokide and Capt. Ilegbodu, the former receiver manager and CEO of Arik Air, respectively, played no role in the purchase of the loan from Union Bank or the London meeting between Union Bank, AMCON, and Arik’s foreign lenders.
Jega also attributed Arik Air’s inability to repay its debt to over-trading, which led to the airline’s inability to service its existing and due debts.
As of Jega’s exit from AMCON in 2015, Arik Air’s indebtedness to the agency stood at over N100 billion, which remained unpaid. The matter has been adjourned to June 30, July 1, and July 2, 2025, for the continuation of cross-examination of Abbas Jega.
The testimony of the former AMCON ED has shed light on the complexities of Arik Air’s debt crisis and the challenges faced by AMCON in restructuring the airline’s debt.
The outcome of the trial is keenly watched by industry stakeholders, given the significant implications for the aviation industry and the Nigerian economy.
