NAMA Grounds Arik Air’s Fleet Over $2.5 Million Debt to Atlas Petroleum

NAMA Grounds Arik Air’s Fleet Over $2.5 Million Debt to Atlas Petroleum

The Nigerian Airspace Management Agency (NAMA) has grounded several aircraft belonging to Arik Air, following an enforcement order from the Federal Capital Territory (FCT) High Court. 

This action stems from a $2.5 million debt owed by Arik Airline to Atlas Petroleum International Ltd.

In a statement signed by Alhaji Abdullahi Musa, Director, Public Affairs and Consumer Protection,  

Nigerian Airspace Management Agency (NAMA) the agency explained that on July 19, 2024, the FCT High Court’s enforcement department executed an order to attach Arik Air’s aircraft as a result of the outstanding debt. 

The court further issued a notice of public auction for the aircraft, scheduled for July 26, 2024, should the airline fail to settle the debt. Both NAMA and the Minister of Aviation were duly notified of these developments.

NAMA disclosed that the legal journey began on March 8, 2016, when the Lagos State High Court ruled against Arik Air, prompting the airline to appeal the decision. 

The Court of Appeal dismissed Arik’s appeal on September 30, 2021, with costs. Persisting in their legal battle, Arik sought leave to appeal from the Supreme Court, which was also dismissed on January 9, 2024, by Justice Okoro, J.S.C.

Subsequently, Atlas Petroleum registered the Lagos State High Court judgment with the FCT High Court. 

On June 26, 2024, Honorable Justice O. A. Adeniyi ordered the attachment of all movable properties belonging to Arik Air, including aircraft with registration numbers B737-700/5N-MJF, B737-800/5N-MJQ, DASH8-Q400, and 5N-BKX, to satisfy the judgment debt.

Arik Airline has since obtained an ex parte order to halt further execution of the attachment order. While formal service of this order is pending, NAMA has decided to ground the aircraft in compliance with the Supreme Court’s dismissal of Arik’s motion for leave to appeal.

This measure aims to preserve the aircraft, which are the subject matter of the dispute, ensuring they remain within the court’s jurisdiction and are not tampered with.

NAMA emphasised the agency’s commitment to upholding the court’s order. “In order to preserve the subject matter of the present dispute, we have decided to comply with the effect of the Supreme Court order, by grounding the aircraft in question,” the agency stated.

According to NAMA, the Minister of Aviation, Mr Festus Keyamo, a Senior Advocate of Nigeria and member of the Inner Bar, supports this action. 

Furthermore, the agency stated that the Minister understands the implications of the Supreme Court’s order and is committed to not risking his legal credentials by engaging in acts that would frustrate the court’s ruling.

NAMA encourages all parties involved to expedite the resolution of their issues to allow Arik Air to resume normal flight operations. 

Tersoo Agber

Journalist, Travel enthusiast, PR consultant, Content manager/editor, Online publisher.