Alleged N76bn Fraud: How I Wrote Off Arik Airlines $2.3 million Debt-------- Ex-Union Bank's Director

Former group executive director of Union Bank PLC, Austen Obigwe, has told the Lagos State Special Offences Court sitting in Ikeja, how he wrote off a $2.3 million debt owed by Arik Air to his private company, Staal Corp.

May 29, 2025 - 08:13

Alleged N76bn Fraud: How I Wrote Off Arik Airlines $2.3 million Debt-------- Ex-Union Bank's Director

Former group executive director of Union Bank PLC, Austen Obigwe, has told the Lagos State Special Offences Court sitting in Ikeja, how he wrote off a $2.3 million debt owed by Arik Air to his private company, Staal Corp.
Obigwe spoke while continuing his evidence as the second prosecution witness before Justice Mojisola Dada in the trial of the former managing director of the Asset Management Corporation of Nigeria, AMCON, Ahmed Kuru, and four others, now standing trial for allegedly defrauding Arik Airline of ₦76 billion and $31.5 million, respectively.
The Economic and Financial Crimes Commission, EFCC, is prosecuting the defendants before the court on a six-count charge bordering on conspiracy and stealing by dishonestly taking the property of another.
Apart from Kuru, the other defendants are the former receiver manager of Arik Air Limited, Kamilu Omokide; Arik Air’s Chief Executive Officer, Captain Roy Ilegbodu; Union Bank of Nigeria PLC; and another company, Super Bravo Limited.
They all pleaded not guilty to the charges, and Justice Dada granted them bail in the sum of ₦20 million each, with one surety in like sum.
Obigwe continued his testimony from where he stopped on March 19. He was led in evidence by prosecution Counsel, Wahab Shittu, SAN.

Answering questions under cross-examination from three Senior Advocates of Nigeria, Olasupo Shasore (for the second defendant); Olalekan Ojo (for the fourth defendant); and Tayo Oyedepo (for the fifth defendant), Obigwe told the court that, in 2011, two years after he exited Union Bank, Arik Air was indebted to his company, Staal, for $2.3m.
He stated that the amount was never repaid but that he had written it off due to the operational difficulties faced by the airline at the time.
“I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he said.

Obigwe, also confirmed that following his exit from Union Bank, he began consultancy engagements with Arik Air and other companies.
When asked whether the founder of Arik Air, Johnson Arumemi-Ikhide, was a personal acquaintance, he responded in the affirmative, noting that although he currently has no formal relationship with the airline, he maintains a relationship with Arumemi-Ikhide.
He further stated that he participated in an inspection of 26 aircraft "purportedly" belonging to Arik Air in 2009, adding that

the aircraft were found to be airworthy and in good condition, based on assessments provided by Lufthansa.
“I had no reason to doubt Lufthansa’s evaluation,” he said, pointing out that, the purpose of the inspection was to ensure that the airline’s fleet had not been depleted.