A Tale of Corporate Mismanagement: The Rise, Fall, and Receivership of Arik Air

However, on February 9, 2017, the Asset Management Corporation of Nigeria (AMCON) took over the airline under controversial circumstances, citing financial mismanagement. In the years that followed, the airline’s operations dwindled. Today, it struggles with just three functional aircraft, a workforce reduced to 350, and tarnished international reputation.

Recent revelations have brought the actions of AMCON and its key players under scrutiny. Former AMCON CEO Ahmed Kuru and others face corruption and abuse of office charges filed by the Economic and Financial Crimes Commission (EFCC). Accusations include mismanagement, asset-stripping, and questionable financial decisions.

At the heart of the controversy lies a loan transaction facilitated by Union Bank, which allegedly contributed to Arik Air’s financial woes. Critics argue that the takeover was part of a premeditated scheme involving high-ranking officials, including former Central Bank Governor Godwin Emefiele. Meetings, such as the CBN’s 494th Governors’ Meeting, reportedly exposed lapses in due process and transparency.

The airline’s downfall also highlights systemic issues in Nigeria’s financial and regulatory sectors. Experts, including EFCC Chairman Ola Olukayode, have emphasized the complicity of banks, lawyers, and accountants in enabling financial crimes. Arik’s story is now seen as a cautionary tale of how power and greed can undermine public and private enterprises.

While the accused await their day in court, the damage to Arik Air and its stakeholders remains significant. The collapse of this once-thriving airline underscores the urgent need for accountability and reform in Nigeria’s aviation and financial sectors.