EFCC Witness Tells Court Union Bank Was Only Guarantor in Arik Air Loan Deal

An EFCC Assistant Director told the Lagos court that Union Bank guaranteed a foreign loan for Arik Air rather than lending directly. He said the loan was later reclassified as non-performing and sold to AMCON without reflecting Arik Air’s partial repayments. The witness said Union Bank packaged the facility as an NPL and sold it for N51 billion. He argued that the airline had repaid about 38 per cent of the debt before the reclassification, leaving the bank indebted to Arik Air. Testimony also covered the sale of Zenith Bank shares and three aircraft for billions of naira and dollars. The witness noted gaps in record-keeping, missing inventory such as a new aircraft engine, and inconsistent asset valuations. Under cross-examination, the witness admitted no forensic audit was carried out. Defence counsel challenged the EFCC’s investigative methods. The court adjourned until May 18 and 19, 2026.

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