Abbas Muhammed Jega, A former executive director at the Asset Management Corporation of Nigeria (AMCON), appeared before the Special Offences Court in Ikeja, Lagos, on Wednesday to testify in the ongoing trial brought by the Economic and Financial Crimes Commission (EFCC) against former AMCON managing director, Ahmed Kuru, and four others.
The case, which is being heard by Justice Mojisola Dada, involves allegations of financial impropriety totalling N76 billion and $31.5 million. The defendants include Kuru; Kamilu Omokide, a former receiver manager of Arik Air Ltd; Captain Roy Ilegbodu of Arik Air, Union Bank Ltd, and Super Bravo Ltd.
Jega, who served as AMCON’s executive director of Credit at the time, told the court that AMCON had acquired a facility from Union Bank in relation to Arik Air. He recalled that Union Bank, following a directive from the Central Bank of Nigeria (CBN), had collapsed a guarantee into a loan due to exposure limits imposed by the apex bank.
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Jega explained that during a meeting in London with stakeholders, it became apparent that what Union Bank had sold to AMCON was a guarantee issued to foreign lenders. He recounted, “We first knew that what Union Bank sold to us was not a loan but a guarantee given to some foreign lenders, that in the event Arik died or burnout, Union Bank will pay the instalments.”
Following this revelation, Jega said AMCON engaged Union Bank in Nigeria for clarification, leading to an agreement that funds paid would be returned to AMCON, which would in turn settle Arik’s instalments should the airline default. He noted that Arik was invited to join these discussions with Union Bank.
According to Jega, AMCON subsequently provided additional funding to Arik to support working capital needs. Despite these efforts, he said Arik failed to fulfil its repayment obligations. He added that the restructuring efforts became increasingly complex after AMCON took over the Union Bank facility, which had previously been performing.
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Jega explained: “We tried in AMCON to save the situation through a debt equity swap, but the burden in AMCON’s books cannot be sustained by the airline. We also proffered a solution where AMCON becomes a shareholder in Arik, and the legacy owners will lose some control. We took steps to implement this option, but Arik refused.”
He noted that another option involved AMCON taking on management oversight by appointing a managing director and chief financial officer at Arik. While initially accepted, he said Arik’s management stalled the implementation.
Under cross-examination, Jega stated that neither Kamilu Omokide nor Captain Roy Ilegbodu was involved in the loan acquisition from Union Bank or the London meeting.
The case has been adjourned to June 30, July 1 and 2, 2025 for the continuation of Jega’s cross-examination.
