A key prosecution witness in the trial of former Asset Management Corporation of Nigeria (AMCON) officials and associated parties has explained why Union Bank was not reported to anti-graft agencies over a contentious loan transaction involving Arik Air.
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Muhammed Jega, former Executive Director of Credits at AMCON, told the Lagos State Special Offences Court in Ikeja that although Union Bank misrepresented facts during the loan deal, the matter was reported to the Central Bank of Nigeria (CBN) for regulatory intervention rather than escalated to the Economic and Financial Crimes Commission (EFCC).
Jega, appearing under cross-examination before Justice Mojisola Dada, is testifying in the trial of former AMCON Managing Director Ahmed Kuru, former Arik Air Receiver Manager Kamilu Omokide, Arik Air CEO Roy Ilegbodu, Union Bank Plc, and Super Bravo Limited. They face a five-count charge by the EFCC, including theft, abuse of office, and fraudulent acquisition of property, while Union Bank is charged with making false statements to a public officer.
He revealed that by 2015, the loan facility provided by Union Bank for Arik Air’s aircraft acquisition had become non-performing, despite the bank initially claiming it had been repaid. Jega noted that Union Bank issued the facility without adequate collateral, and due diligence was conducted only after AMCON had purchased the loans.
“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.
Jega added that Arik Air had raised verbal concerns over AMCON’s involvement, though no formal protest was made, and he did not escalate these complaints in writing to the AMCON Board. He further confirmed that the airline requested a loan restructuring, which he forwarded to AMCON management.
Under questioning, Jega clarified that while AMCON had acquired N85 billion of Arik Air’s debt from Union Bank and Bank PHB, and later provided an additional N11 billion in working capital, Arik Air failed to meet repayment obligations. He admitted that he had not personally reviewed the full loan purchase agreement, particularly the sections prepared by Union Bank, and noted that discrepancies in documentation were discovered only after the acquisition.
The witness also disclosed that Arik’s chairman had once offered him a consultancy role with the airline, which he declined.
Justice Dada adjourned the matter to November 28, 2025, for the continuation of cross-examination and further proceedings.
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