Follow Us on Google
By Marvelous Udoruisi and Oyinlola Arolawun
A key prosecution witness in the ongoing trial involving former officials of the Asset Management Corporation of Nigeria (AMCON), first generation bank and others has explained why the Bank was not reported to anti-graft agencies over its role in a controversial loan deal with the Arik Air.
The witness, Muhammed Jega, a former Executive Director of Credits at AMCON, told the Lagos State Special Offences Court in Ikeja that although the bank misrepresented facts during a loan transaction involving Arik Air, AMCON did not escalate the matter to the Economic and Financial Crimes Commission (EFCC). Instead, the issue was reported to the Central Bank of Nigeria (CBN), the financial sector’s regulatory authority.
Jega made these statements under cross-examination before Justice Mojisola Dada.
He is testifying in the trial of former AMCON Managing Director Ahmed Kuru, former Receiver Manager of Arik Air Kamilu Omokide, Arik Air CEO Roy Ilegbodu, the Bank Plc, and Super Bravo Limited.
They are facing a five-count charge brought by the EFCC, including allegations of theft, abuse of office, and fraudulent acquisition of property. Union Bank also faces an additional charge of making false statements to a public officer.
Jega stated that the bank’s actions were never formally reported to security agencies, as AMCON chose to inform the CBN for regulatory intervention and appropriate sanctions.
During his cross-examination by defense counsel, Olalekan Ojo (SAN), he confirmed there was no official complaint letter to any anti-corruption agency over the bank’s alleged misrepresentation.
The witness revealed that as of his exit from AMCON in 2015, the loan facility provided by Union Bank to Arik Air for aircraft acquisition had become non-performing.
He also disclosed that he had no knowledge of any specific directive issued by the CBN regarding the transaction before his departure.
He added that although Union Bank initially claimed Arik had repaid the loan, it was later discovered that the bank issued the facility without adequate collateral.
According to Jega, due diligence was conducted only after AMCON had already purchased the Arik loans from Union Bank.
“The loans were meant for the purchase of various aircraft, but Union Bank did not adhere to standard banking procedures during the sale of Arik’s loans to AMCON,” he testified.
Under questioning by another defense counsel, Tayo Oyetibo (SAN), Jega confirmed that Arik Air never submitted a formal protest over the transaction but had raised verbal concerns about AMCON’s involvement.
Other News
He admitted that he did not document these complaints or escalate them to the AMCON Board, although he verbally informed board members of his reservations.
He further noted that Arik Air had requested a loan restructuring, which he forwarded to AMCON management due to a “business need.”
In an earlier session on June 30, Jega told the court that the Arik loan was performing when AMCON acquired it. However, under renewed cross-examination by Prof. Taiwo Osipitan (SAN), he later clarified that by 2015, the loan had fallen into the non-performing category, according to regulatory standards.
He stated that AMCON had purchased a total of N85 billion worth of Arik Air’s debt from Union Bank and Bank PHB and later provided an additional N11 billion as working capital.
Despite these efforts, Arik failed to meet its repayment obligations.
While acknowledging that he was involved in approving the loan transactions, Jega said he never personally reviewed the full loan purchase agreement, particularly the section involving Union Bank.
He also noted that Union Bank had presented the loans as performing and supported their claim within minutes from a meeting held in London between Arik and AMCON officials.
However, he pointed out that the minutes were authored solely by Union Bank.
“It was only after AMCON had acquired the loan that the problems with the documentation became apparent,” Jega said.
He further testified that Arik Air and its promoters had several other outstanding obligations to AMCON beyond the loans currently under litigation.
During questioning by Mr. Olasupo Sasore (SAN), counsel to former AMCON MD Ahmed Kuru, Jega disclosed that Arik’s chairman had once offered him a consultancy position with the airline, which he declined based on professional advice.
“I maintained a strictly professional relationship with all AMCON clients,” he said.
Justice Mojisola Dada adjourned the matter to November 28, 2025, for the continuation of cross-examination and further hearing.
