Arik Loan Not Performing Since Inception – Jega, EFCC Witness

A former executive director, Credits at Asset Management Corporation of Nigeria (AMCON), Muhammed Abbas Jega, has admitted that the Arik debt in AMCON, which was on-boarded at the time he served as executive director, indeed fell within the category of non-performing loan as categorised by the regulatory agencies in the country.

Jega made this admission during a cross examination  at the ongoing criminal trial at the Special Offences Court presided by Justice Mojisola Dada,, a stance that is contrary to his earlier stance, when he first appeared as a star witness to the Economic and Financial Crimes Commission (EFCC).

The matter, which was adjourned to continue today, July 1, 2025, is between the EFCC vs the ex-AMCON MD/CEO, Ahmed Kuru, Kamilu Omokide, a former receiver manager of Arik Air Ltd; Captain Roy Ilegbodu, the airline’s CEO; Union Bank Ltd; and Super Bravo Ltd.

Jega, in his previous evidence, had testified that the Arik loan, which AMCON purchased at the first phase of the Eligible Bank Asset (EBA) purchase, was performing. But on Monday, he retracted his earlier testimonies to the court when he told the court that the AMCON leadership, which he was part of as an Executive Director, purchased from Union Bank and Bank PHB a whopping N85 billion Arik debt. He said after this, Jega also disclosed that AMCON also extended additional loans as working capital of N11 billion to Arik.

He also informed the Court that despite these funds injected by AMCON into Arik, plus the BOI intervention funds into Arik, which AMCON also guaranteed, Arik was not able to service their obligations with AMCON up until the time he left AMCON as executive director, Credits.

He however, threw the court into some sort of confusion when he stated that even though he served as executive director, Credits of AMCON, who acted in good faith, and carried out all actions backed with Board approval, he never sighted the Loan Purchase Agreement, which chronicled the number and credit details regarding the embattled Arik loan, especially from Union Bank.

Jega also admitted that, as at the time he left AMCON in 2015, the Arik loan was non-performing. He, however, maintained that Union Bank deceived AMCON. Jega stated that it was after the so-called London meeting between the obligor and the Executive Management of AMCON that it became clear that there were issues with the purchase.

However, Jega could not explain why, as the Executive Director in charge of the transaction, he could not escalate the matter to both the Board of AMCON and the Central Bank of Nigeria but rather chose to restructure the loans, which still remained unpaid till date.

Again, contrary to his earlier testimony to the Court, Jega finally admitted that aside from the guarantees, Arik Air Limited and its promoter had other loans with AMCON. He even read out loud to the court a letter he signed as executive director, Credits, which reminded Arik and its chairman of their outstanding obligations to AMCON.

Under cross-examination, Jega also admitted that apart from Union Bank, none of the defendants in the criminal trials were part of the acquisition or restructuring of the Arik loan.  He also read another letter, which the management of Union Bank addressed to AMCON, and attentioned him in his capacity as executive director, Credits.