Arik Air Boeing 737-700 Being Dismantled at Lagos Airport Amid Access Bank Debt Dispute

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A Boeing 737-700 operated by Arik Air is being dismantled at Murtala Muhammed Airport, Lagos, amid a dispute over an alleged debt owed to Access Bank. The aircraft, located between the Civil Aviation Flying Unit hangar and the Air Force helicopter hangar at the airport’s domestic wing, has reportedly been undergoing dismantling for about a month. Several components, including avionics, the radome, interior fittings and doors, have already been removed.

Chairman denies default, demands answers

Chairman of Arik Air, Johnson Arumemi-Ikhide, denied that the airline defaulted on its obligations to Access Bank before the Asset Management Corporation of Nigeria (AMCON) took over the company. He said any developments involving the airline after the takeover should be explained by the receiver-manager, who is responsible for Arik’s day-to-day management and fiduciary obligations.

According to Arumemi-Ikhide, the receiver-manager contacted Arik’s shareholders in October 2024 regarding the alleged indebtedness to Access Bank and securities covering the airline’s aircraft and engines. He said the shareholders responded in December 2024, requesting documents that could verify the alleged debt, but claimed those documents had not been provided.

Arumemi-Ikhide also said the matter was being investigated by the Economic and Financial Crimes Commission (EFCC), with Access Bank and Arik shareholders assisting investigators who requested records relating to the alleged loans for forensic examination. Shareholders noticed the dismantling last week and wrote to the receiver-manager on August 17 seeking an explanation. The chairman described the situation as concerning and called for an investigation into what he characterised as the destruction of the airline’s assets over unverified loan claims.

Receiver-manager: Sale followed due process

Simon Tumba, media consultant to Arik Air in receivership, gave a different account. Tumba said the aircraft had been sold after all necessary procedures and legal requirements were fulfilled. According to him, the aircraft was secured in favour of Access Bank, which provided relevant security documents to Arik Air and subsequently to AMCON.

He said the documents were verified as genuine and that neither Arik Air nor AMCON objected to Access Bank exercising its security rights, including selling the aircraft. Tumba said the bank had now completed the sale.

Second aircraft controversy under AMCON

The latest development is the second major controversy involving the dismantling of an Arik aircraft under AMCON. In November 2024, the Federal High Court in Lagos authorised parties linked to Export Development Canada to take custody, control and dismantle a CRJ1000 aircraft, registration number 5N-JEE, formerly operated by Arik Air.

Justice Alexander Oluseyi Owoeye, in a judgment delivered on November 27, 2024, also restrained the EFCC from harassing or intimidating the applicants or their contractor over their lawful civil obligations concerning the aircraft. The ruling followed a dispute over ownership and repossession of the aircraft, which had been removed from Arik Air’s operational fleet several years earlier.

What it means for Arik Air

The exact amount involved could not be verified, but analysts say the issue will compound the airline's woes, especially as it is trying to bounce back under AMCON. Earlier, the EFCC told a Lagos State Special Offences Court that the Board of Governors of the Central Bank of Nigeria approved the takeover of Arik Air by AMCON following what it described as a severe financial downturn at the airline.

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