NAMA: Arik aircraft grounded over $2.5m debt case

The Nigerian Airspace Management Agency (NAMA) says it grounded some aircraft belonging to Arik Airline over a $2.5 million debt case.

In a statement on Tuesday, Abdullahi Musa, director of public affairs and consumer protection at NAMA, said the decision is a sequel to an order by the federal high court.

Abdullahi said the court’s order is regarding a case of $2.5 million owed by Arik to Atlas Petroleum International Ltd.

“On the 19th day of July 2024, the enforcement department of the FCT High Court enforced an Order made by the Court regarding a debt of $2.5 million owed by Arik Airline to one Atlas Petroleum International Ltd by attaching their aircraft,” the agency said.

“Arik was further given a notice of Public Auction of the planes by the Court which was slated to be held on the 26th day of July 2024 if they fail to pay the Judgment debt. All these were served on our agency and also on our supervising minister, the minister of aviation.

“The records show that on the 8th day of March, 2016, the Judgment Debtor (ARIK) appealed the decision of the High Court of Lagos State entering judgment against it to the Court of Appeal and on 30th September 2021, the appeal was dismissed by the Court of Appeal in a unanimous decision with cost.

“Arik again appealed to the Supreme Court for leave to appeal the decision of the Court of Appeal, and on the 9th day of January 2024, the Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.

“The judgment creditor registered the judgment of the Lagos State High Court in The High Court of FCT and On the 26th day of June 2024, Honorable Justice O. A. Adeniyi, then sitting in Court 8, Maitama, Abuja) made an order after hearing Motion No: M/9785/2024 filed on behalf of Atlas Petroleum attaching all the moveable properties belonging to the Judgment Debtor, including the Judgment Debtor’s aircraft with Registration No: B737-700/ 5N-MJF, B737-800/ 5N-MJQ, DASH8-Q400 and 5N-BKX in satisfaction of the judgment debt. Copies of the Order and Certificate of Judgment were also served on us and the minister.”

NAMA further said Arik obtained an ex parte order stopping further execution of the order – even though the agency has not been formally served. 

“In the circumstances, since the first execution took place by attaching the aircraft, further execution by way of sale can be halted whilst the parties go back to court to resolve the issues,” NAMA said. 

“However, in order to preserve the subject matter of the present dispute which are the aircrafts in question (the res), which have already been attached, we have decided to comply with the effect of the supreme court order, by grounding the aircrafts (subject of dispute) so that they are not taken out of the jurisdiction of the court or tampered with in a way as to frustrate the courts.”

The agency also said the minister, being a member of the inner bar understands the implication of the supreme court order dismissing the motion for leave to appeal.

“The minister will not risk his license as a legal practitioner or his privilege as a senior Advocate of Nigeria by engaging in acts that will frustrate an order of the Supreme Court of Nigeria,” NAMA added. 

NAMA also said the parties to the dispute should resolve their issues as quickly as possible so Arik aircraft can resume flight operations.

Earlier, Roy Ilegbodu, chief executive officer (CEO) of Arik Air (in receivership), said the minister’s directive came without warning or consultation.

Ilegbodu also said the decision would have a ripple effect on the firm and the country’s economy.