Former Bank Director Testifies in ₦76 Billion, $31.5 Million Fraud Case Against Ex-AMCON MD Kuru

EFCC vs Union Bank & AMCON Officials: Allegations of Fraud, Misrepresentation, and Asset Misuse

The Economic and Financial Crimes Commission (EFCC) has filed a lawsuit against Union Bank of Nigeria, accusing the institution of providing false information to public officers. The suit is part of a broader five-count charge that also implicates several former high-ranking officials in a complex fraud case involving theft, abuse of office, and dishonest misappropriation of assets belonging to Arik Air.

According to the EFCC, the alleged fraudulent schemes trace back as far as 2011 and include critical transactions as recent as 2022. Union Bank is specifically accused of misrepresenting Arik Air’s loan performance to the Asset Management Corporation of Nigeria (AMCON), leading to the improper classification and subsequent sale of the airline’s loans and associated guarantees.

Former AMCON Managing Director Ahmed Kuru, along with Kamilu Omokide and Roy Ilegbodu, is alleged to have fraudulently diverted ₦4.9 billion to NG Eagle Ltd, a newly formed airline spinoff. Additionally, Captain Roy Ilegbodu is accused of converting ₦22.5 million belonging to Arik Air Ltd for the personal benefit of Magashi Ali Mohammed.

In a particularly damaging allegation, the defendants are also charged with authorizing the dismantling and destruction of Arik Air’s 5N-JEA aircraft—an asset valued at $31.5 million—thereby inflicting significant economic losses on the airline.

The EFCC contends that these actions constitute serious violations of Sections 73, 96, 278(1), and 278(6) of the Criminal Law of Lagos State, 2015.

At their arraignment, all five defendants pleaded not guilty, setting the stage for what is expected to be a landmark trial in Nigeria’s anti-corruption efforts.

Inside the Courtroom: What Transpired During Testimony

At the resumed hearing, the second prosecution witness, Austine Obigwe—a former Group Executive Director of Union Bank Plc—recounted events dating back to 2011, two years after his departure from the bank. Obigwe disclosed that Arik Air owed his private company, Staal, a sum of $2.3 million.

However, he told the court, “I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges.”

During cross-examination, defence counsel—including Olasupo Shasore, SAN (representing the second defendant); Olalekan Ojo, SAN (for the fourth defendant); and Tayo Oyedepo, SAN (for the fifth defendant)—grilled the witness on his professional ties following his exit from Union Bank. Obigwe confirmed he subsequently worked as a consultant for Arik Air and other entities.

When asked whether he shared a personal relationship with Arik Air’s founder, Sir Johnson Arumemi-Ikhide, he answered affirmatively.
“I don’t currently have any formal engagement with the airline,” he clarified, “but I maintain a relationship with Arumemi-Ikhide.”

Obigwe also recounted his role in a 2009 technical assessment of Arik Air’s fleet. He stated that he personally participated in inspecting 26 aircraft owned by the airline, noting they were deemed airworthy based on evaluations conducted by Lufthansa.

“I had no reason to doubt Lufthansa’s evaluation,” he testified.

• He stressed that the purpose of the inspection was to ensure that the airline’s fleet had not been depleted.
• When asked about the airline’s compliance with its loan obligations, Obigwe testified that during his tenure at Union Bank, there were no complaints from other financial institutions accusing Arik Air of defaulting on its loan obligations.
• The witness also confirmed that Arik Air was servicing its loan with Union Bank during his tenure.

“Responding to a letter dated April 23, 2009, allegedly written by AMCON to Union Bank concerning a N46.11 bn debt owed by Arik Air, the witness stated that the letter was not brought to his attention while he was still with the bank, ” the EFCC statement partly reads.

• The witness said he could only speak for the period he was with the bank, adding, “When I was in Union Bank, Arik Air was one of the best companies.” 

• The matter was then adjourned till June 4, 2025, for the continuation of the trial.

Back Story   

The case stems from AMCON’s acquisition of Arik Air’s debt portfolio in 2011 as part of efforts to stabilize Nigeria’s aviation sector.

The airline, once the largest in West Africa, has faced financial instability, leading to its receivership in 2017.

The alleged misconduct raises concerns about transparency in debt recovery and the management of strategic national assets.

Nanya (Face of Probitas Report, Europe)

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