- A Boeing 737-700 belonging to a Nigerian airline has been undergoing dismantling at Murtala Muhammed Airport, Lagos, for about a month
- The Airline’s Chairman denied the airline defaulted on its debt obligations, saying the EFCC is investigating the matter
- Media Consultant Simon Tumba said the aircraft was sold after all legal requirements were met, with neither the airline nor AMCON objecting
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
A Boeing 737-700 operated by Arik Air is being dismantled at the Murtala Muhammed Airport in Lagos amid a dispute over an alleged debt owed to Access Bank.
The aircraft, located between the Civil Aviation Flying Unit hangar and the Air Force helicopter hangar at the airport’s domestic wing, has reportedly been undergoing dismantling for about a month.
Credit: Novatis
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Several components, including avionics, the radome, interior fittings and doors, have already been removed from the aircraft.
The development has triggered fresh concerns over the fate of assets belonging to Arik Air, which has been under the receivership of the Asset Management Corporation of Nigeria (AMCON).
Arik chairman questions alleged indebtedness
Chairman of Arik Air, Johnson Arumemi-Ikhide, denied that the airline defaulted on its obligations to Access Bank before AMCON took over the company, according to a report by The Guardian.
He said any developments involving the airline after the takeover should be explained by the receiver-manager, who is responsible for Arik’s day-to-day management and fiduciary obligations.
According to Arumemi-Ikhide, the receiver-manager contacted Arik’s shareholders in October 2024 regarding the alleged indebtedness to Access Bank and securities covering the airline’s aircraft and engines.
He said the shareholders responded in December 2024, requesting documents that could verify the alleged debt, but claimed those documents had not been provided.
Arumemi-Ikhide also said the matter was being investigated by the Economic and Financial Crimes Commission (EFCC), with Access Bank and Arik shareholders assisting investigators who requested records relating to the alleged loans for forensic examination.
He said shareholders noticed the dismantling of the Boeing 737-700 last week and wrote to the receiver-manager on August 17 seeking an explanation.
The Arik chairman described the situation as concerning and called for an investigation into what he characterised as the destruction of the airline’s assets over unverified loan claims.
Arik says aircraft sale followed due process
However, Simon Tumba, media consultant to Arik Air in receivership, gave a different account.
Tumba said the aircraft had been sold after all necessary procedures and legal requirements were fulfilled.
According to him, the aircraft was secured in favour of Access Bank, which provided relevant security documents to Arik Air and subsequently to AMCON.
He said the documents were verified as genuine and that neither Arik Air nor AMCON objected to Access Bank exercising its security rights, including selling the aircraft.
Tumba said the bank had now completed the sale.
Second Arik aircraft dismantling controversy
The latest development is the second major controversy involving the dismantling of an Arik aircraft under AMCON.
In November 2024, the Federal High Court in Lagos authorised parties linked to Export Development Canada to take custody, control and dismantle a CRJ1000 aircraft, registration number 5N-JEE, formerly operated by Arik Air.
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Justice Alexander Oluseyi Owoeye, in a judgment delivered on November 27, 2024, also restrained the EFCC from harassing or intimidating the applicants or their contractor over their lawful civil obligations concerning the aircraft.
The ruling followed a dispute over ownership and repossession of the aircraft, which had been removed from Arik Air’s operational fleet several years earlier.
Legit.ng could not verify the exact amount involved at the time of writing, but analysts say the issue will compound the airline’s woes, especially as it is trying to bounce back under AMCON.
EFCC tells court CBN approved takeover of Nigerian airline
Earlier, Legit.ng reported that the Economic and Financial Crimes Commission (EFCC) told a Lagos State Special Offences Court that the Board of Governors of the Central Bank of Nigeria (CBN) approved the takeover of Arik Air Limited by the Asset Management Corporation of Nigeria (AMCON) following what it described as a severe financial downturn at the airline.
The disclosure was made before Justice Mojisola Dada by the fourth prosecution witness, Bawa Kaltungo, an Assistant Director with the EFCC, on Tuesday, February 24.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng