AMCON Debt Recovery: Arik Air, Rockson, and Ojemai Owe Over N455 Billion
The Asset Management Corporation of Nigeria (AMCON) has disclosed that Sir Johnson Arumemi-Ikhide, owner of Arik Air, alongside his other businesses, owes the corporation a staggering N455,171,764,772.80 as of 31st December 2024.
This revelation was made as AMCON reiterated its commitment to recovering all outstanding debts, regardless of opposition or blackmail campaigns.
In a press briefing held in Lagos, Mr Jude Nwauzor, Head of AMCON’s Corporate Communications Department, outlined the breakdown of the debts: Arik Air owes N227,637,469,394.34, Rockson Engineering owes N163,502,837,397.75, and Ojemai Farms owes N14,031,457,980.71.
According to Nwauzor, Sir Johnson had agreed to the terms of repayment in several restructured agreements but consistently failed to honour them.
AMCON emphasised that its intervention in February 2017 saved Arik Air from liquidation. Nwauzor clarified that AMCON did not take over Arik by fiat, as alleged in some quarters.
Instead, the takeover followed due process under the AMCON Act and involved the purchase of the airline’s non-performing loans from financial institutions, including Union Bank, Keystone Bank (formerly Bank PHB), Zenith Bank, Access Bank, and Standard Chartered Bank.
“Arik was insolvent as far back as 2015 and 2016, with mounting debts to financial institutions both locally and internationally. The Federal Government directed AMCON to intervene to prevent the loss of over 1,500 jobs. This was crucial at a time when Nigeria had fewer airlines than today,” Nwauzor explained.
Contrary to claims that Arik Air had 30 operational aircraft at the time of AMCON’s intervention, Nwauzor revealed that only eight were operational.
Many of the aircraft were either abandoned, scrapped, or inactive. Additionally, the airline had no funds to continue operations, as confirmed by reports from KPMG and PwC, which declared Arik Air insolvent before AMCON’s involvement.
“AMCON stepped in despite recommendations for liquidation, which would not have recovered even a fraction of the debts owed. Since 2017, we have invested significantly to sustain the airline’s operations, yet we have not recovered our investments,” Nwauzor added.
Under the AMCON Amendment Act of 2021, the corporation is empowered to seize, manage, or sell properties of debtors, even if such assets were not originally used as loan collateral.
AMCON reiterated that it has the option to liquidate Arik Air and other debtor organisations but has prioritised management to keep the airline operational.
“AMCON is owned by the Central Bank of Nigeria (CBN) and the Ministry of Finance and operates within the laws of the Federal Republic of Nigeria. We remain committed to recovering these debts and ensuring profitability for the companies involved,” Nwauzor stated.
Despite ongoing blackmail campaigns, AMCON vowed to remain resolute in recovering the debts owed, ensuring accountability and stability in Nigeria’s aviation sector.
