The Nigeria Customs Service (NCS) has initiated an investigation into the management of Arik Air in receivership following allegations of aircraft cannibalization and the suspected diversion of import duties amounting to $40 million.

Arik Air entered receivership under the Asset Management Company of Nigeria (AMCON) back in 2017 due to concerns about the airline’s financial instability and its inability to meet operational obligations.

The primary goal of this receivership was to restructure the airline, settle outstanding debts, and ensure its continued operation.

However, recent developments have raised 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 mark a critical juncture 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.

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In a document from the Customs Intelligence Unit (CIU), signed by Comptroller I.G. Umar, the Arik Air management was requested to provide further clarification on the matter.

The document highlighted specific information needed, including evidence of notification of temporary re-exportation or sale, particulars of movements of the aircraft to various locations, and records of salvaged parts and their current storage locations.

This request aligns with the statutory responsibilities outlined in the Nigeria Customs Service Act, emphasizing the need for transparency and accountability in such matters.

In response to the demand for a physical inspection of the aircraft in question, Arik Air in receivership claimed that the referenced aircraft had been seized and repossessed by certain lessors and partners of the airline.

The airline also pointed out its significant indebtedness to AMCON and suggested that any concerns about outstanding loans should be addressed through the appropriate channels.

This investigation represents a critical step in ensuring that the financial and operational integrity of Arik Air is upheld, while also addressing allegations of wrongdoing related to its aircraft assets and import duties.