In Nigeria, aviation authorities have grounded planes owned by Arik Air due to a disputed $2.5 million debt. The Nigerian Airspace Management Agency (NAMA) made this decision following an order from the enforcement department of the FCT High Court. This order concerns a $2.5 million debt Arik owes to Atlas Petroleum International Ltd.
NAMA explained, “On July 19, 2024, the FCT High Court’s enforcement department carried out an order about a $2.5 million debt Arik Airline owes to Atlas Petroleum. They seized Arik’s planes and gave a notice that the planes would be auctioned on July 26, 2024, if the debt wasn’t paid. This notice was sent to our agency and the Minister of Aviation.”
The issue goes back several years. In March 2016, Arik appealed a Lagos High Court decision that ruled against them. However, on September 30, 2021, the Court of Appeal dismissed Arik’s appeal unanimously, adding costs. Arik then sought permission from the Supreme Court to appeal, but on January 9, 2024, the Supreme Court rejected this request.
Atlas Petroleum then registered the Lagos High Court judgment with the FCT High Court. On June 26, 2024, Justice O. A. Adeniyi ordered all of Arik’s movable properties, including its planes, to be seized to settle the debt. This included aircraft with registration numbers B737-700/5N-MJF, B737-800/5N-MJQ, DASH8-Q400, and 5N-BKX. Copies of this order were given to NAMA and the Minister of Aviation.
Arik has since obtained a temporary court order to stop the further execution of this order, but this has not been officially served to NAMA. Due to the initial seizure of the planes, NAMA has decided to ground the aircraft to prevent them from being moved out of the court’s jurisdiction or tampered with.
Additionally, the Minister of Aviation, who is a Senior Advocate of Nigeria, is aware of the Supreme Court’s order. He understands the legal implications and will not risk his professional standing by defying the court’s order.
The involved parties are urged to resolve their dispute quickly so that Arik’s planes can resume operations.
