Nigerian Banker Testifies He Wrote Off $2.3M Arik Air Debt

A former executive director of Union Bank Nigeria, Austine Obigwe, testified before a Lagos State Special Offences Court that he wrote off a $2.3 million debt owed by Arik Air to his private firm, Staal. His statement came during the trial of former Asset Management Corporation of Nigeria (AMCON) managing director Ahmed Kuru and four others, accused of financial misconduct involving over NGN76 billion and $31.5 million. The case, brought by Nigeria’s Economic and Financial Crimes Commission (EFCC), continues with all defendants pleading not guilty and out on bail.

Obigwe stated under cross-examination that Arik Air had defaulted on the debt by 2011, two years after he left Union Bank. He said the amount was written off due to Arik Air’s financial struggles, noting he had no intention of recovering the sum. He admitted to maintaining a personal relationship with Arik Air founder Johnson Arumemi-Ikhide and had worked as a consultant for the airline post-bank tenure.

During his testimony, Obigwe recalled a 2009 visit to Arik Air’s fleet of 26 aircraft, which he claimed Lufthansa had deemed airworthy. He also asserted that Arik Air was financially sound while he oversaw its accounts at Union Bank, and that the airline met all its obligations until his departure.

When asked about a 2009 AMCON letter referencing NGN46.11 billion in debt, he said he had not been informed. He further confirmed Union Bank’s role in financing aircraft purchases for Arik Air. The trial will resume on June 4.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com