The Asset Management Corporation of Nigeria (AMCON) has vowed to recover the N455 billion debt owed by Arik Air and its affiliate companies, despite facing what it describes as a coordinated smear campaign by the airline’s founder, Johnson Arumemi-Ikhide.
Speaking at a media luncheon in Lagos on Friday, Jude Nwauzor, AMCON’s Head of Corporate Communications, accused Arumemi-Ikhide of sponsoring misleading narratives to evade payment. He emphasized that AMCON remains legally mandated to recover debts and will not succumb to intimidation.
Nwauzor described AMCON’s debt recovery efforts as an uphill battle, often met with legal resistance, public misinformation, and character assassination.
“The task of debt recovery has been arduous and challenging,” he said. “While many Nigerians and businesses have honored their obligations, some debtors remain unwilling to pay without a fight. Among them is Arik Air Limited (in receivership), owned by Sir Johnson Arumemi-Ikhide.”
According to AMCON, Arik Air alone owes N227.6 billion, while its affiliate companies, including Rockson Engineering (N163.5 billion) and Ojemai Farms (N14 billion), bring the total debt to over N455 billion as of December 31, 2024.
“No matter the smear campaign he is sponsoring against AMCON, these debts must be recovered one way or another,” Nwauzor declared. “There is no easy way to recover debts, and obligors will go to great lengths to malign our name, intimidate, and harass our personnel.”
Arik Air’s financial troubles date back to February 2017, when the federal government, through AMCON, took over the airline due to its massive debt profile exceeding N300 billion. The government immediately dissolved its management and appointed a receiver-manager to oversee operations.
However, the takeover sparked years of legal battles, with Arumemi-Ikhide and Arik Air stakeholders contesting AMCON’s claims.
In January 2024, the airline’s stakeholders publicly challenged AMCON’s assertion that Arumemi-Ikhide owed over N445 billion, accusing the agency of mismanaging Arik Air since its takeover.
Adding to the controversy, the Economic and Financial Crimes Commission (EFCC) recently arraigned former AMCON Managing Director Ahmed Kuru, Arik Air Managing Director Roy Ilegbodu, Receiver Manager Kamilu Omokide, Union Bank Plc, and Super Bravo Limited over allegations of fraud linked to the airline’s management.
The defendants have all pleaded not guilty, and the case stems from a petition filed by Femi Falana (SAN) on behalf of Arumemi-Ikhide and Arik Air’s shareholders.
Nwauzor also dismissed claims by Arumemi-Ikhide that Arik Air never defaulted on its loan repayment to Union Bank, which originally held the debt before AMCON’s intervention.
“The founder of Arik has consistently peddled a false narrative, claiming that the airline never defaulted on its payment obligations,” Nwauzor said. “But the public must ask: If the loan was performing, why was it sold and restructured? Why did he agree to the restructuring? Did he fulfill the agreed terms?”
He explained that Union Bank classified the loan as non-performing and sold it to AMCON in compliance with the Prudential Guidelines of the Central Bank of Nigeria (CBN).
“Union Bank willingly offered the Arik loans to AMCON, which purchased them in line with the law,” he added.
Nwauzor revealed that AMCON is currently entangled in over 2,000 lawsuits, as debtors continue to resist repayment. Despite these challenges, the agency has recovered N2.1 trillion for the federal government since its inception.
