Nigerian aviation authorities have grounded Arik Air’s aircraft due to a contentious $2.5 million debt.
The Nigerian Airspace Management Agency (NAMA) announced on Tuesday that the enforcement department of the FCT High Court issued an order concerning a $2.5 million debt owed by Arik to Atlas Petroleum International Ltd, which led to this action.
NAMA stated, “On the 19th of July 2024, the enforcement department of the FCT High Court executed an Order regarding a debt of $2.5 million owed by Arik Airline to Atlas Petroleum International Ltd., resulting in the attachment of their aircraft. The court also issued a notice of Public Auction for the planes, scheduled for the 26th of July 2024, should the debt remain unpaid. This notice was served to our agency and the Minister of Aviation.
“Records indicate that on the 8th of March 2016, the Judgment Debtor (ARIK) appealed a decision by the Lagos State High Court, which had ruled against it, to the Court of Appeal. On the 30th of September 2021, the Court of Appeal unanimously dismissed the appeal, imposing costs. ARIK then sought permission to appeal this decision at the Supreme Court. However, on the 9th of January 2024, the Supreme Court, per Okoro, J.S.C., dismissed ARIK’s application for leave to appeal.
“The Judgment Creditor subsequently registered the Lagos State High Court’s judgment with the High Court of the FCT. On the 26th of June 2024, Honourable Justice O. A. Adeniyi, sitting in Court 8, Maitama, Abuja, issued an order—following the hearing of Motion No: M/9785/2024 filed by Atlas Petroleum—attaching all movable properties of the Judgment Debtor. This included Arik’s aircraft with Registration Nos: B737-700/5N-MJF, B737-800/5N-MJQ, DASH8-Q400, and 5N-BKX, in satisfaction of the judgment debt. Copies of the Order and Certificate of Judgment were served to us and the Minister.
“We understand that Arik has since obtained an ex parte order preventing further execution of the order, although we have not been formally served. Given that the initial execution has occurred with the attachment of the aircraft, further execution, such as sale, can be paused while the parties return to court to resolve the issues. However, to preserve the subject of the dispute (the aircraft in question), which has already been attached, we have decided to adhere to the Supreme Court’s order by grounding the aircraft. This is to ensure they are not removed from the court’s jurisdiction or altered in a manner that could obstruct judicial proceedings.
“Moreover, the Minister, being a member of the Inner Bar, understands the implications of the Supreme Court’s dismissal of the motion for leave to appeal and will not jeopardise his legal practice licence or his status as a Senior Advocate of Nigeria by acting against a Supreme Court order.
“We encourage the parties involved to resolve their dispute promptly so that the Arik aircraft in question can resume flight operations.”