The Asset Management Corporation of Nigeria (AMCON) has reaffirmed its commitment to recovering the N227 billion debt owed by Arik Air as the agency intensifies efforts to liquidate the airline.
This was disclosed by AMCON’s Head of Corporate Communications, Mr. Jude Nwauzor, during a session with aviation correspondents in Lagos on Friday.
Despite several attempts to revive Arik Air, the airline’s financial situation has continued to worsen, leading AMCON to proceed with liquidation plans.
The debt, which forms part of a broader financial challenge involving several companies owned by Sir Johnson Arumemi-Ikhide, including Rockson Engineering and Ojemai Farms, remains a significant concern for AMCON.
Nwauzor confirmed that Arik Air owes AMCON N227.63 billion, while Rockson Engineering and Ojemai Farms owe N163.50 billion and N14 billion, respectively.
AMCON’s strategy is aimed at recovering a total of N455.17 billion in non-performing loans across companies linked to Arumemi-Ikhide, with these debts having been transferred from various banks to AMCON due to the companies’ inability to meet repayment obligations.
Union Bank of Nigeria was the first to classify Arik Air’s loans as non-performing, in line with the Central Bank of Nigeria’s Prudential Guidelines.
As of December 31, 2024, Arik Air’s outstanding debt stood at N227.63 billion. The airline’s financial troubles date back to 2010, when its loan exposure reached N70 billion, contributing significantly to Union Bank’s financial instability.
At the time AMCON took control of Arik Air, only nine of the airline’s aircraft were operational, highlighting the dire state of its operations.
Despite previous efforts to revive the airline, the ongoing debt crisis has led to the decision to pursue liquidation.
In addition to AMCON’s efforts, a Federal High Court ruling has recently allowed Export Development Canada (EDC) to repossess an aircraft leased to Arik Air.
The ruling, issued on November 27, 2024, by Justice Alexander Oluseyi Owoeye, marks the first application of the Cape Town Convention in Nigeria.
The court granted EDC the right to reclaim and dismantle a grounded CRJ1000 aircraft leased to Arik Air in 2014. This aircraft had been out of service since 2019, with previous repossession efforts blocked by the Economic and Financial Crimes Commission (EFCC).
The court’s decision clears the way for EDC to enforce its rights, marking a significant step in the enforcement of international aviation laws in Nigeria.
