The Nigeria Customs Service (NCS) has initiated an investigation into the management of Arik Air in receivership amid allegations of aircraft cannibalization and the alleged diversion of import duties totaling $40 million.
Arik Air had entered receivership under the Asset Management Company of Nigeria in 2017 due to concerns about its financial instability and inability to meet operational obligations.
The main objective of the receivership was to restructure the airline, settle outstanding debts, and ensure its continued operation.
NCS investigates alleged illicit sale
However, recent developments have raised fresh concerns regarding the illicit sale of the airline’s aircraft.
The NCS is currently probing the cannibalization of three aircraft, which were subsequently re-exported.
These allegations have become a critical point in the ongoing efforts to stabilize Arik Air’s operations and restore its financial health.
The NCS investigation aims to uncover any irregularities or illegal activities related to the disposal of aircraft assets and the diversion of import duties.
In a document titled “Re: Request for Physical Inspection of Boeing 737NG, Bombardier CRJ-900, and CRJ-900ER Aircraft,” signed by the Comptroller, Customs Intelligence Unit, CIU, I.G.
Umar, it was stated that the explanations provided in response to earlier inquiries on these airplanes were insufficient and required further clarification.
The document requested that the management of Arik Air come in person to the CIU headquarters to provide additional information and documentation regarding the aircraft, including evidence of notification of temporary re-exportation or sale, particulars of movements of the aircraft, and documentation related to the dismantling and destruction process, among other details.
This request is in line with the statutory responsibilities outlined in the Nigeria Customs Service Act.
In response to the demand for a physical inspection of the aircraft, Arik Air in receivership claimed that the aircraft had been seized and repossessed by some lessors and partners of the airline.
The airline also emphasized its significant indebtedness to AMCON, the Asset Management Company of Nigeria, and suggested that efforts should be made to address these outstanding loans.