Nigerian Court Approves Repossession of Arik Air’s CRJ1000

Nigeria’s Federal High Court has ruled in favor of Export Development Canada (EDC), granting the right to repossess and dismantle Arik Air’s CRJ1000 aircraft, registered as 5N-JEE (msn 19037). The landmark judgment, delivered on November 27, 2024, by Justice Alexander Oluseyi Owoeye, is the first since Nigeria ratified the Cape Town Convention.

The ruling supports EDC’s claim that it was exercising its contractual rights as a creditor. EDC financed the aircraft acquisition through JEM Leasing Limited, which later sold the jet to Alberta Aviation Capital in 2022. Despite opposition from Nigeria’s Economic and Financial Crimes Commission (EFCC) and some Arik Air shareholders, Justice Owoeye upheld the legality of the sale and export process.

The court also criticized the EFCC for its actions against repossession agents, citing harassment and intimidation tactics. Owoeye’s ruling prevents further EFCC interference, paving the way for the CRJ1000’s removal from Lagos airport, where it remains in storage.

The aircraft, leased to Arik Air in 2014, had been grounded since 2019 due to the airline’s financial struggles. Arik Air, under the management of Nigeria’s Asset Management Corporation (AMCON) since 2017, has seen its fleet dwindle to 11 aircraft, with only two currently operational.

Nigeria’s adherence to the Cape Town Convention reflects a shift toward improving compliance with international leasing standards. Aviation Minister Festus Keyamo has attributed past non-compliance to legal barriers within Nigeria’s judicial system. This ruling marks a milestone for the country’s aviation industry.

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