“I participated in the inspection of Arik Air’s 26 aircraft. The Lufthansa Technic team confirmed they were all serviceable. I had no reason to doubt their findings,” he told the court. He explained that the inspection’s purpose was to verify that Arik Air’s fleet had not diminished.
BY ANTHONY OMOH
In 2009, Lufthansa certified Arik Air aircraft as fully serviceable following a comprehensive inspection of the airline’s 26 aircraft fleet. Former Executive Director Corporate and International Banking, Union Bank PLC, Mr. Austine Obigwe, confirmed this under cross-examination at the Lagos State Special Offences Court in Ikeja on Wednesday.
Obigwe appeared as a witness for the Economic and Financial Crimes Commission (EFCC) in the ongoing trial of former Managing Director of the Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Kuru, and four others. He stated that Arik’s aircraft were in excellent condition when assessed by Lufthansa Technic.
“I participated in the inspection of Arik Air’s 26 aircraft. The Lufthansa Technic team confirmed they were all serviceable. I had no reason to doubt their findings,” he told the court. He explained that the inspection’s purpose was to verify that Arik Air’s fleet had not diminished.
At the time of the 2009 inspection, Obigwe supervised Arik’s transactions at Union Bank. He reiterated there was no sign of financial instability or loan default from the airline during that period. “During my time, Arik Air was one of the best companies,” he said, defending the airline’s operations back then.
However, pressed further, Obigwe later admitted that the company changed drastically. He described Arik Air as “an irresponsible, badly run, and immoral company,” and disclosed that his private firm, Staal, was owed $2.3 million by Arik in 2011. This was two years after his exit from Union Bank.
“I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he testified. He also admitted to becoming a consultant for Arik after resigning from the bank, suggesting a prolonged relationship with the company’s promoter, Sir Johnson Arumemi-Ikhide.
Despite these later developments, Obigwe emphasized that Lufthansa certified Arik Air aircraft in 2009 and that there was no report of default on loans with Union Bank during his tenure. He denied knowledge of an April 23, 2009 AMCON letter that cited a N46.11 billion debt by Arik.
The EFCC has charged Kuru, Captain Roy Ilegbodu (CEO Arik), Mr. Kamilu Omokide (former Receiver Manager), Union Bank of Nigeria PLC, and Super Bravo Limited with conspiracy, stealing, and abuse of office. They all pleaded not guilty.
Justice Mojisola Dada granted each accused person N20 million bail with one surety in like sum. The trial continues on June 4, 2025, as lead prosecutor Dr. Wahab Shittu (SAN) builds his case.
Meanwhile, Obigwe’s dual role—first as a bank executive, then as consultant—has raised questions of conflict of interest. He acknowledged his relationship with Arik’s promoter, noting that Arumemi-Ikhide remains his church member.
Obigwe confirmed lenders have several legal options when borrowers default, including transferring or enforcing the debt security. This supported AMCON’s eventual acquisition of the Arik debt portfolio.
