Arik Air Denies Wrongdoing Amidst $40 Million Import Duty Investigation

Nigeria’s Arik Air has refuted claims of diverting $40 million in import duties related to the alleged illegal sale of three aircraft. The airline, currently under state-appointed receivership by the Asset Management Corporation (AMCON), is collaborating with the Nigeria Customs Service (NCS) during the investigation.

Responding to a report by Sahara Reporters, Arik Air clarified that it has provided comprehensive details of the aircraft under scrutiny to the NCS. The airline firmly stated that these details would demonstrate their compliance with regulations and refute any allegations of misconduct.

The investigation, initiated by the NCS, centers around accusations that Arik Air abused a tax waiver by purportedly selling three aircraft with fake documents, specifically a B737-700 (5N-MJI), CRJ900 (5N-JEB), and CRJ900ER (5N-JEA). The duty waivers were originally intended for the import of aircraft and spares by domestic airlines.

Arik Air acknowledged the duty waivers granted to them before the receivership period but highlighted the absence of proper documentation and transfer of these waivers to AMCON, as required by law. The airline’s founder and chairman, Johnson Arumemi-Ikhide, had pledged various aircraft and engines to lenders, potentially violating the terms of the waivers.

The financial struggles faced by Arik Air, including legal actions by local and foreign creditors, were cited, emphasizing the challenges the airline has encountered. Additionally, Arik Air provided details of the sales of the three mentioned aircraft, clarifying that these transactions were lender-led decisions and not initiated by the receivership team.

The airline explained that Arumemi-Ikhide had secured loans from Export Development Canada (EDC) to purchase Bombardier Aerospace jets. Post-receivership, the decision to exit the CRJ line of planes was made by EDC, not the Arik Air receivership team. The aircraft underwent an independent valuation by an international specialist company before the sale, confirming that EDC sold the two CRJ900 aircraft, and the B737-700 was not sold but dismantled due to economic unviability.

Arik Air remains committed to cooperating with the NCS and upholding transparency throughout the investigation. The airline aims to dispel any allegations of wrongdoing and ensure compliance with regulatory requirements.