Nosa Osula Aituamen
The Asset Management Corporation of Nigeria (AMCON) has reiterated its commitment to recovering debts owed by Arik Air Limited in Receivership and its founder, Sir Johnson Arumemi-Ikhide.
At a media briefing in Lagos, AMCON’s Head, Corporate Communications Department, Mr. Jude Nwauzor, disclosed that Arik Air’s debts, alongside those of associated companies, amount to ₦455.17 billion as of December 31, 2024.
In February 2017, the Asset Management Company of Nigeria, AMCON, placed Arik Air under receivership due to the airline’s financial instability and operational challenges.
Spokesman of AMCON, Mr. Jude Nwauzor, said, Arik Air’s, under its founder, Sir Johnson Arumemi-Ikhide’s management, owes AMCON ₦227.64 billion, while related entities, Rockson Engineering owe ₦163.50 billion and Ojemai Farms ₦14.03 billion.
According to him, these debts, classified as non-performing, were acquired by AMCON after being sold by financial institutions, including Union Bank and Bank PHB, following defaults.
Union Bank, for instance, he said, had classified Arik’s $474 million (approximately ₦70 billion) debt as non-performing in 2010, leading to its sale to AMCON.
Despite efforts to restructure the loans from 2011 to 2017, AMCON revealed that Arik repeatedly defaulted on its obligations.
He disclosed that, reports by KPMG and PwC Nigeria confirmed Arik’s insolvency, with liabilities exceeding assets since 2014.
“No matter the blackmail these monies will be recovered to the last kobo no matter who is involved”.
Citing the AMCON Act, the Corporation outlined its legal authority to acquire non-performing loans and appoint Receiver-Managers to manage or liquidate debtor companies.
AMCON spokesman clarified that despite Arik’s insolvency, it chose to manage the airline to mitigate the impact on Nigeria’s aviation sector, rather than liquidate it outright.
Mr. Nwauzor dismissed claims by Sir Johnson Arumemi-Ikhide of having 30 aircraft at take over and questioning the legality of the receivership, labeling such actions as insincere.
“Upon taking over the company, the receivership team found a fleet in disarray with only eight aircraft as against the 30 that he claimed in all his communication, yes, he had 30 aircraft but those 30 aircraft where scattered all over the world, some have been seized, some have been cannibalized, grounded here and there”.
AMCON urged the media to play a critical role in holding obligors accountable.
“The recklessness of a few individuals has left taxpayers bearing the burden of over ₦4 trillion in debts. The media must challenge these debtors, including Sir Johnson, to fulfill their moral and legal obligations”.
He assured the public of its unwavering determination to recover debts from Arik Air, its associated entities and many others to the tune of over ₦4 trillion in debts, adding that, liquidation is still an option after all legal cases have been closed.