The Nigerian Airspace Management Agency (NAMA) grounded Arik Air’s aircraft following a Supreme Court order regarding a $2.5 million debt. Arik Air is in contention with Atlas Petroleum International Ltd over this debt. Both companies have been in a legal dispute, involving the seizure of aircraft as collateral for the debt. According to NAMA, on July 19, 2024, the enforcement department of the FCT High Court enforced the order.
Arik Air appealed the initial court decision multiple times but ultimately lost after a prolonged legal battle. Atlas Petroleum registered the judgment in the FCT High Court and obtained an order to attach Arik’s fleet. On March 8, 2016, Arik appealed a judgment by the High Court of Lagos State to the Court of Appeal. On September 30, 2021, the Court of Appeal dismissed Arik’s appeal. Arik then sought permission from the Supreme Court to appeal the Court of Appeal’s decision. However, on January 9, 2024, the Supreme Court dismissed this application.
NAMA stated, “On June 26, 2024, Honourable Justice O. A. Adeniyi, sitting in Court 8, Maitama, Abuja, made an order after hearing Motion No: M/9785/2024 filed on behalf of Atlas Petroleum. The order attached all moveable properties belonging to the Judgment Debtor, including the aircraft with Registration No: B737-700/ 5N-MJF, B737-800/ 5N-MJQ, DASH8-Q400 and 5N-BKX in satisfaction of the judgment debt. Copies of the Order and Certificate of Judgment were also served on us and the Minister.”
Arik obtained an ex parte order stopping further execution of the order, although it has not been formally served. NAMA explained, “Since we attached the aircraft during the first execution, we can halt further execution by sale.” The parties will return to court to resolve the issues.”
To preserve the aircraft involved in the dispute, NAMA decided to comply with the Supreme Court order. NAMA grounded the aircraft to prevent removing them from the court’s jurisdiction or tampering with them.
NAMA mentioned, “The Minister, a member of the Inner Bar, understands the implications of the Supreme Court order dismissing the motion. He will not risk his license as a legal practitioner or his privilege as a Senior Advocate of Nigeria. The Minister will not engage in acts that will frustrate an order of the Supreme Court of Nigeria.”
