The Asset Management Corporation of Nigeria has reiterated its commitment to recovering the N227 billion debt owed by Arik Air, while intensifying its efforts to liquidate the airline.
This was disclosed in a statement by the agency’s Head of Corporate Communications, Mr. Jude Nwauzor, during an interactive session with aviation journalists in Lagos on Friday, as reported by the NAN.
Nwauzor stated that despite several efforts to revive Arik Air, the airline’s financial situation has remained critical, leading AMCON to move forward with its liquidation plans.
The debt, which remains a substantial financial burden, is part of a larger issue involving several companies owned by Sir Johnson Arumemi-Ikhide, including Rockson Engineering and Ojemai Farms.
AMCON’s resolve to recover these debts is supported by Sections 6 and 48 of the AMCON Act, which grant the corporation the authority to take such actions.
“Nwauzor added that Arik Air owed AMCON N227.63 billion, while Rockson Engineering owed it N163.50 billion and Ojemai Farms, N14 billion.
“He emphasised that AMCON was determined to recover the debts,” the NAN report read in part.
The statement emphasized that AMCON’s strategy focuses on recovering a total of N455.17 billion in non-performing loans owed by companies in which Sir Johnson Arumemi-Ikhide has interests.
These debts were transferred from various banks to AMCON due to the companies’ failure to meet repayment obligations.
Nwauzor explained that Union Bank of Nigeria was the first to classify Arik Air’s loans as non-performing, in accordance with the Prudential Guidelines set by the Central Bank of Nigeria. As of December 31, 2024, the outstanding debt owed by Arik Air alone stood at N227.63 billion.
The financial difficulties worsened when Arik Air’s loan exposure hit N70 billion in 2010, a situation that significantly contributed to Union Bank’s own financial instability.
Nwauzor further disclosed that when AMCON took control of the airline, only nine of Arik Air’s aircraft were serviceable, highlighting the severe state of the airline’s operations.
