Arik Air’s $2.3m Debt Absolved by Ex-Banker in Court

Arik Air’s $2.3m Debt Absolved by Ex-Banker in Court

Arik Air is back in the spotlight after a former top banker confessed in court that he wiped away a staggering $2.3 million the airline owed his private company—without asking for a kobo in return.

Austine Obigwe, a one-time executive director of Union Bank Nigeria, made this revelation at a Lagos State Special Offences Court, where he appeared as a witness in a major financial crime trial involving Ahmed Kuru, the ex-managing director of the Asset Management Corporation of Nigeria (AMCON), and four other suspects.

These five men are facing serious charges of alleged financial mismanagement involving about ₦76 billion (around $47.8 million) and another $31.5 million, according to Nigeria’s anti-graft agency, the Economic and Financial Crimes Commission (EFCC). All of them have pleaded not guilty and are currently out on bail.

While being cross-examined in court, Obigwe revealed that in 2011, two years after he left Union Bank, his private firm, Staal Engineering, was still owed $2.3 million by Arik Air. But instead of recovering the money, he chose to forgive the debt completely.

“I am not interested in collecting it. I wrote it off when I discovered that Arik Air started having challenges,” he said.

Obigwe admitted that he had a personal relationship with Arik Air’s founder, Johnson Arumemi-Ikhide, though he insisted he had no current business ties with the airline. He also confirmed that after he left Union Bank, he briefly acted as a consultant for Arik Air.

He went on to describe how, back in 2009, he had visited the airline’s fleet of 26 aircraft. According to him, an inspection by Lufthansa found the planes airworthy. At the time, Arik Air was considered financially stable and was repaying its loans as expected.

During his time at Union Bank, Obigwe said the bank supported Arik Air with loan guarantees for buying planes. These included two A340-500s and three B737-800s, used for both domestic and international routes. He stressed that all loans given to Arik Air were performing until he left the bank in 2009.

When asked in court about a 2009 letter reportedly sent by AMCON regarding a ₦46.11 billion (about $29 million) debt Arik Air owed, Obigwe claimed he had no knowledge of the letter while still working at the bank, even though he oversaw the airline’s accounts at the time.

His decision to forgive such a massive debt—without demanding any repayment or taking legal action—has left many observers stunned. It has also sparked renewed debate over how personal friendships and elite networks may influence high-stakes financial decisions in Nigeria.

Critics argue that such casual cancellation of millions of dollars, especially by someone who once held a senior banking position, could weaken trust in financial institutions and allow powerful companies to escape responsibility.

The courtroom was quiet as Obigwe calmly explained that his company took the financial hit to avoid pursuing a struggling airline. But not everyone is convinced. For many Nigerians, this case is a window into how public trust is often tested by decisions made behind closed doors.

This trial—focused on AMCON’s leadership and the alleged misuse of billions—continues to unravel the links between private firms, big banks, and the aviation industry.

Arik Air, once Nigeria’s most promising airline, has seen its image tarnished over the years due to rising debt, flight cancellations, and management shake-ups. Today, it remains a symbol of what happens when ambition meets mismanagement.

The case returns to court on June 4, with more testimonies expected to shed light on how Nigeria’s once-prized airline found itself buried in controversy.

For many citizens, this is more than just a courtroom story—it is a reminder of why transparency, accountability, and fairness matter in both public service and private enterprise. The public will be watching closely, especially to see if such debt forgiveness was an act of goodwill—or something more.