‘Liquidation on the table’ — AMCON says Arik and its affiliates’ debts now N455bn

The Asset Management Corporation of Nigeria (AMCON) says Arik Air and its affiliate companies have accumulated debts exceeding N455 billion as of December 31, 2024.

Speaking during a media luncheon held in Lagos on Friday, Jude Nwauzor, head of the corporate communications department at AMCON, said the debts were transferred by various banks to AMCON due to the companies’ non-performance in meeting their financial obligations.

In February 2017, Arik Air was taken over by the federal government via AMCON due to the company’s huge debt profile, which was over N300 billion.

Consequently, the government immediately dissolved the airline’s management team and appointed a receiver manager.

Nwauzor said regardless of any smear campaign being orchestrated against AMCON, the corporation is determined to recover the debts by all possible means.

“While several thousands of Nigerians and Nigerian companies have honoured their obligations, AMCON continues to face resistance from a number of debtors who are unwilling to pay without a fight. One of these debtors is Arik Air Limited (in Receivership), an airline company owned by Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nigeria Limited (a power infrastructure company), Ojeimai Farms Limited, and Ojemai Investment Limited,” he said.

“These companies’ debts were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455, 171, 764, 772.80 as at December 31, 2024.

“Arik owes AMCON N227,637,469,394.34 billion; Rockson Engineering N163,502, 837, 397.75billion and Ojemai Farms N14, 031, 457, 980.71 billion.

“The fact of the matter is that no matter the smear campaign he is sponsoring against AMCON, these debts must be recovered one way or the other.”

‘ARIK AIR INSOLVENT DESPITE AMCON’S INTERVENTION’

The AMCON spokesperson said Arik Air has been insolvent since 2015–2016, and the situation remains unchanged despite the corporation’s intervention.

He said the liquidation of Arik is one of the options on the table to recover the debts.

“The fact is that managing these debts is very challenging for the corporation. We never wanted to do it in the first place because of the huge debts. That option of liquidating Arik is still on the table. Very much on the table but we are guided by the federal government, and the Act governing AMCON. If push comes to shove, those are the options,” Nwauzor said,

“Here we are managing Arik, which was already insolvent in 2015-2016, and it is still insolvent, as we discuss. So AMCON has been putting in money that we cannot recover but the government wants us to keep it depending on when there will be a transition of credible investment who can come and rescue Arik.

“Because left to the promoter of Arik, I can state it categorically, that he cannot pay those debts. It’s too huge. Such debt to a country is so huge. How much more an individual?“

‘REFUSAL TO SETTLE DEBTS DISSERVICE TO NIGERIANS’

Nwauzor addressed reports suggesting that criminal charges filed by the Economic and Financial Crimes Commission (EFCC) in connection with Arik absolve Arumemi-Ikhide of responsibility for the debts.

He clarified that the existence of criminal charges does not negate the airline’s obligations to AMCON, reiterating the corporation’s efforts in recovering the debts owned by the companies.

The AMCON spokesperson described Arumemi-Ikhide’s refusal to settle the debts as a “disservice to the commonwealth and the Nigerian people.”

Also, Nwauzor said AMCON has a mandate to recover N4trillion owed to the corporation by several individuals and businesses.

He warned that if AMCON fails to recover the debts, the financial burden will ultimately fall on taxpayers.

“If at sunset AMCON is unable to recover the huge debt of over N4 trillion, it becomes the debt of the federal government of Nigeria for which taxpayers’ monies will be used to settle,” he said.

“The implication is that the general public will be made to pay for the recklessness of only a few individuals who continue to take advantage of the loopholes in our laws to escape their moral and legal obligations to repay their debts.”

In June 2018, AMCON said 350 Nigerians or their businesses owe a whopping N4.3 trillion.