Nigerian aviation authorities have halted the operation of Arik Air's aircraft due to a disputed $2.5m debt.

The Nigerian Airspace Management Agency (NAMA) announced on Tuesday that this action was taken following an order from the enforcement department of the FCT High Court, related to Arik's outstanding debt of $2.5m to Atlas Petroleum International Ltd.

It said, “On July 19, 2024, the enforcement department of the FCT High Court executed a court order regarding a $2.5 million debt owed by Arik Airline to Atlas Petroleum International Ltd. By seizing their aircraft. Arik received a notice of a public auction of the planes scheduled for July 26, 2024, if they failed to settle the judgment debt. These documents were duly served on our agency and the Minister of Aviation.

“On March 8, 2016, the Judgment Debtor (ARIK) filed an appeal against the High Court of Lagos State’s decision to the Court of Appeal. The appeal was subsequently dismissed on September 30, 2021, by a unanimous decision with costs awarded against ARIK.

“ARIK again appealed to the Supreme Court for leave to appeal the decision of the Court of Appeal, and on the 9th day of January, 2024, the Supreme Court, per Okoro, J.S.C., delivered its Ruling dismissing the Judgment Debtor’s application for leave to appeal.

“The Judgment Creditor registered the Judgment of the Lagos State High Court in The High Court of FCT and On the 26th day of 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. Copies of the Order and Certificate of Judgment were also served on us and the Minister.

“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.”