Nigerian govt grounds Arik Air over $2.5m debt

The minister of Aviation and Aerospace Development, Festus Keyamo, has ordered the grounding of Arik Air.

The Nigerian Airspace Management Agency, NAMA, in a statement signed by its Director, Public Affairs and Consumer Protection, Abdullahi Musa, said the grounding of the aircraft followed a Supreme Court judgment on the debt of $2.5 million owed by Arik Airline to one Atlas Petroleum International Ltd. by attaching their aircrafts.

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Titled, ‘Grounding Of Arik Aircrafts By The Nigerian Airspace Management Agency’, NAMA said: “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 $2.5m owed by Arik Airline to one Atlas Petroleum International Ltd. by attaching their aircraft.
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“Arik was further given a notice of Public Auction of the planes by the Court which was slated to hold 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.”

According to NAMA, records show that on March 8, 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 September 30, 2021, a unanimous decision of the appellate court dismissed the appeal with cost.

Dissatisfied with the judgment, “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.”

According to NAMA, the judgment Creditor registered the Judgment of the Lagos State High Court in the High Court of FCT and on June 26, 2024, 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.

NAMA said, “Copies of the Order and Certificate of Judgment were also served on us and the Minister. We understand too that Arik has obtained an ex-parte order stopping further execution of the order, though we have 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.

“However, in order to preserve the subject matter of the present dispute which are the aircraft 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 aircraft (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.”

NAMA said the Minister of Aviation and Aerospace Development, Festus Keyamo being a Senior Advocate (SAN), understands the implication of the Supreme Court Order dismissing the motion for leave to appeal and 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.

“The parties to the dispute are encouraged to resolve their issues as quickly as possible so that the Arik aircraft in question can resume flight operations,” NAMA said.