January 17, (THEWILL) – The Asset Management Corporation of Nigeria has reaffirmed its resolve to recover the N227.64 billion debt owed by Arik Air Limited (in receivership), emphasizing its commitment to optimal recovery from the aviation company and its stakeholders.
Jude Nwauzor, AMCON’s Head of Corporate Communications, disclosed this during an interaction with aviation journalists in Lagos on Friday.
He described the debt recovery process as challenging, noting that while many debtors have fulfilled their obligations, others, including Arik Air, remain resistant.
“One of the notable debtors is Arik Air Limited, an airline promoted by Sir Johnson Arumemi-Ikhide, who also owns Rockson Nigeria Limited, Ojemai Farms Limited, and Ojemai Investment Limited,” Nwauzor stated.
He revealed that the companies’ debts were transferred to AMCON by various banks due to their non-performance, with a combined liability of over N455 billion as of December 31, 2024.
Arik Air accounts for N227.64 billion of the total debt, while Rockson Engineering owes N163.5 billion, and Ojemai Farms N14 billion.
Nwauzor dismissed ongoing smear campaigns against AMCON, asserting that the debts must be recovered.
“No matter the narrative being pushed, these debts must be settled. If AMCON cannot recover the over N4 trillion debt portfolio, it will fall on taxpayers to shoulder the burden,” he warned.
Nwauzor highlighted the role of Union Bank of Nigeria in designating Arik’s loans as non-performing, leading to their eventual sale to AMCON.
He explained that in 2010, Union Bank notified Arik of its $474 million (about N70 billion at the time) debt, which posed a significant risk to the bank’s stability.
Documents provided by AMCON revealed that prior to its intervention in 2017, Arik Air was insolvent, with liabilities exceeding its assets by N80 billion and total debts amounting to N289 billion.
Audits conducted by PwC Nigeria and KPMG further confirmed the airline’s financial distress, with insolvency dating back to 2014.
Nwauzor also disputed claims by Arumemi-Ikhide that Arik had 30 serviceable aircraft before AMCON’s intervention.
He presented records indicating that only nine aircraft were operational, while several others were abandoned or extensively cannibalized in locations such as Lagos, Malta, and South Africa.
According to Nwauzor, AMCON’s involvement was necessitated by concerns over passenger safety, the welfare of Arik’s 1,500 employees, and the overall stability of Nigeria’s aviation sector. In compliance with the AMCON Act, the corporation appointed a Receiver-Manager to stabilize operations and prevent the airline’s collapse.
“Arik’s founder had previously acknowledged the debts and agreed to a loan restructuring plan. However, sustained resistance and attempts to undermine recovery efforts have prolonged the process,” he said.
AMCON has called on all stakeholders to support its recovery efforts, emphasising that the corporation’s mandate is critical to ensuring financial stability and protecting taxpayer funds.
Anthony Awunor, is a business correspondent who holds a Bachelor of Arts Degree in Linguistics (UNILAG). He is also an alumnus of the Nigerian College of Aviation Technology (NCAT), Zaria Kaduna State. He lives in Lagos.
