Nigeria Friends above finance: Ex-Union Bank Executive Wrote Off $2.3m Arik Air Debt

Personal relationships can reshape million-dollar business decisions in unexpected ways. Ch-Aviation reports that former Union Bank executive director Austine Obigwe testified in Lagos court about writing off $2.3 million owed by Arik Air to his private company. This revelation emerged during the corruption trial of ex-AMCON Managing Director Ahmed Kuru and four co-defendants, who are facing NGN76 billion misappropriation charges.

This debt forgiveness exposes how personal loyalties intersect with corporate financial decisions in Nigeria's aviation sector.

Key Takeaways

• Austine Obigwe wrote off a $2.3 million debt owed by Arik Air to his private firm, Staal.
• Debt cancellation occurred in 2011, two years after Obigwe left the Union Bank executive role
• Obigwe cited Arik Air's "operational challenges" as a reason for the debt forgiveness decision
• Former banker admitted continuing personal relationship with Arik founder Johnson Arumemi-Ikhide
• Testimony part of ongoing trial involving NGN76 billion ($47.8m) and $31.5m misappropriation charges
• Obigwe confirmed that Union Bank guaranteed aircraft procurement loans for Arik's fleet expansion
• All defendants pleaded not guilty and received bail from the Economic and Financial Crimes Commission

Where does business judgment end and personal favour begin? How do individual relationships influence corporate decisions that ultimately affect Nigeria's struggling aviation industry?

Should personal relationships influence business debt decisions? What safeguards protect corporate interests from individual loyalties in Nigerian banking and aviation?