Keyamo Grounds Arik Air Fleet Over $ m Debt

NAMA Grounds Arik Air Fleet Over $2.5m Debt

5 months ago
2 mins read

The National Airspace Management Agency (NAMA) has grounded Arik Air fleet following an order by the Minister of Aviation and Aerospace Development, Festus Keyamo.

According to a statement released on Tuesday, 30th July, signed by Alhaji Abdullahi Musa, Director, Public Affairs and Consumer Protection, Keyamo gave the directive for grounding of all Arik Air aircraft in compliance with an FCT High Court Order made on 19 July 2024 regarding a debt of $2.5 million owed by Arik Air to one Atlas Petroleum International Ltd.

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According to the statement, “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.”

Prime Business Africa reports that the matter has lingered since February 2016 when a Lagos High Court gave judgment in favour of Atlas Petroleum International Limited and Engineer Arthur Eze, who is the company’s chairman.

NAMA said the records show that on 8th 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. However the appeal was on 30th September, 2021, dismissed by the Court of Appeal in a unanimous decision with cost.

NAMA further said ARIK proceeded to the Supreme Court and appealed for leave to appeal the decision of the Court of Appeal, but on 9 January 2024, the Supreme Court delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.

READ ALSO: NAMA Suspends Proposed 800% Flight Charges Hike

According to the Agency, the Judgment Creditor registered the Judgment of the Lagos State High Court in the FCT High Court and on 26 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.

It added that copies of the Order and Certificate of Judgment were also served on the agency and the Minister.

READ ALSO: AMCON Explains What Happened To Arik Air’s 3 Aircraft After Takeover

“We understand too that Arik has obtained an exparte 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 aircrafts, 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 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.

“Furthermore, the Minister, being a member of the Inner Bar himself 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 aircrafts in question can resume flight operations.”

victor ezeja
Correspondent at Prime Business Africa | + posts

Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.


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