AMCON vows to recover N227bn debt from Arik Air

The Asset Management Corporation of Nigeria (AMCON) on Friday vowed to recover N227 billion debt from Arik Air.

The Head of Corporate Communications in AMCON, Mr. Jude Nwauzor, stated this during an interactive session with aviation correspondents in Lagos.

He said AMCON’s plan to liquidate Arik Air is still on as efforts to revive the airline have so far proved abortive.

He added that the agency’s action is backed by Sections 6 and 48 of the AMCON Act.

Nwauzor said that the meeting was to clarify some misrepresentations on the issue.

The spokesman said: “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.

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“These companies’ debts were transferred by various banks to AMCON due to their non-performance with a total indebtedness of N455.17 billion as of December 31, 2024.

“The decision to classify the loan as non-performing was made by Union Bank of Nigeria, in accordance with the Prudential Guidelines of Central Bank of Nigeria.”

He said in a letter dated October 22, 2010, the bank informed Arik that its loans, about N70 billion at that time, were non-performing and posed a threat to the bank’s stability.

“This loan exposure was a significant factor in Union Bank’s financial challenges.

“Arik Air owed AMCON N227.63 billion while Rockson Engineering owed it N163.50 billion and Ojemai Farms N14 billion,” Nwauzor stated.

He stressed that AMCON was determined to recover the debts.

He revealed that only nine Arik Air aircraft were serviceable at the time AMCON stepped in.

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