Arik Air funds diverted to pay insurance for Umza Airline, EFCC witness tells court
By Onyewuchi Ojinnaka
The Economic and Financial Crimes Commission’s (EFCC) fourth prosecution witness (PW4), Mr Bawa Usman Kaltungo, told a Lagos court on Wednesday that investigations revealed funds belonging to Arik Air were diverted to pay insurance premiums for Umza Airline.
The ongoing trial of former Asset Management Corporation of Nigeria (AMCON) Managing Director/CEO Ahmed Kuru; former Arik Air receiver manager Kamilu Alaba Omokide; Arik Air CEO Captain Roy Ilegbodu; Union Bank of Nigeria Plc; and Super Bravo Ltd—over alleged misappropriation of funds amounting to N76 billion and $31.5 million, among other charges—resumed before Justice Mojisola Dada of the Special Offences Court sitting in Ikeja, Lagos.
Kaltungo, an EFCC official who led the investigation, was led in evidence by the prosecution team headed by Dr Wahab Shittu (SAN).
He testified that the Central Bank of Nigeria (CBN) Board of Governors, the Ministries of Finance and Aviation, and then-Acting President Yemi Osinbajo (SAN) directed AMCON’s intervention in Arik Air.
In response to a question from Dr Shittu, the witness explained that AMCON opened a loan account for Arik Air and assigned an account officer to monitor repayments.
“We invited the account officer and requested him to bring the statement of the Arik Air loan account in receivership. He came with the loan account signed by him,” Kaltungo said.
“There was no evidence of loan servicing. It continued to accrue interest. Both the first and second receivers refused to service the loan at the time of our investigation.
“AMCON had to issue a demand notice to the receiver manager.”
The witness read extracts from the CBN Board of Governors’ meeting minutes into the record. As the lead investigator, he presented relevant portions concerning AMCON’s intervention in Arik Air.
One excerpt stated: “…after further discussion, the members agreed as follows: (i) that the CBN should carry out the Federal Government directives in intervening in the affairs of Arik Airline; (ii) Payment of the sum of N1.5 billion working capital to the airline, and that AMCON should present periodic accounts and reports to the Committee of Governors…”
Kaltungo further read from the minutes that Ahmed Kuru, then MD/CEO of AMCON, briefed the board that Arik Air—which handled about 60% of passenger traffic in the country—could collapse within two weeks without rescue.
In response to another question, the witness said the CBN chairman noted that Arik Air’s situation had deteriorated and urgent action was needed to stem the decline.
He added that Kuru informed the meeting Arik had paid substantial sums to technical partners Lufthansa, who then left the country—indicating that owner Sir Joseph Arumemi-Ikide had given up on the airline.
Kuru also discussed the matter with three major creditor banks, leading to consensus that the CBN should intervene.
The witness told the court that, according to the minutes, the Federal Ministry of Finance informed Kuru that Standard Chartered Bank had threatened to seize two Arik aircraft over unpaid leases. The airline’s insurance policy was due for renewal, and urgent steps were needed to prevent grounding.
Kuru disclosed that the Ministers of Finance and Aviation had raised alarms about the airline’s going-concern status but agreed it was “too big to fail” and a major concern for the Federal Government.
The witness revealed that Kuru was invited to a Presidency meeting on Arik, where immediate government intervention was deemed necessary.
“The then Acting President of Nigeria was briefed, and he directed that whatever needed to be done to rescue the airline should be deployed immediately,” Kaltungo said.
The EFCC charged the defendants following a petition by Mr Femi Falana (SAN) on behalf of Arik Air’s promoter. The allegations include conspiracy, stealing, and abuse of office involving the alleged misappropriation of funds.
The matter continues on Thursday, February 26, 2026, for continuation of the trial.
