The Asset Management Corporation of Nigeria has reaffirmed its commitment to recovering over N455 billion in debts owed by Arik Air Limited (in receivership) and its affiliated companies.
AMCON’s Head of Corporate Communications, Jude Nwauzor, who disclosed this during a media briefing in Lagos, stated that Sir Johnson Arumemi-Ikhide, promoter of Arik Air, Ojemai Investment Limited, and Rockson Engineering Nigeria, has been uncooperative in settling the debts.
Nwauzor described the refusal to repay the loans as a “disservice to the commonwealth and the Nigerian people,” adding that AMCON remains undeterred by alleged smear campaigns against the agency.
“These debts must be recovered one way or the other. The leadership of AMCON, under Mr. Gbenga Alade, will not deviate from its mandate to recover the huge debt owed to the Corporation by recalcitrant obligors,” he said.
Nwauzor disclosed that despite severe resistance from debtors AMCON has recovered over N2.1trillion debts for the Federal Government of Nigeria.
According to AMCON, the debts, transferred from various banks due to non-performance, include N227.6 billion owed by Arik Air, N163.5 billion by Rockson Engineering, and N14 billion by Ojemai Investment.
Nwauzor refuted claims by Arumemi-Ikhide that the loans were performing and that the receivership was premature, describing such narratives as misleading.
“If the loan was performing, why was it sold and restructured? Why did he agree to the restructuring if there was no default? The simple answer is that he did not fulfill the agreed terms,” Nwauzor added.
Arik Air was taken over by the Federal Government through AMCON in February 2017 due to its debt profile exceeding N300 billion. Despite legal challenges, the receivership management, led by Captain Roy Ilegbodu, has continued to operate the airline effectively.
AMCON reiterated its resolve to recover the debts in line with its mandate, emphasizing the importance of accountability and transparency in the process.
Nwauzor disclosed that despite severe resistance from debtors AMCON has recovered over N2.1trillion debts for the Federal Government of Nigeria.
The recovery agency also said that currently, it has over 2000 cases in court, as some of their debtors do not use the money to do what it was borrowed for.
According to Nwauzor, AMCON sees the media as very strategic to its recovery mandate because most of these obligors run to the media with some skewed narratives in their desperation to make AMCON look bad.
“The point remains that these are debtors who have contributed to killing the Nigerian economy.
“The media must not allow them to eat their cake and have it,” Nwauzor said.
He noted that as the media is the mirror of society, the management of AMCON is convinced that a deeper collaboration between AMCON and the media will deliver positive dividends for the country.
Nwauzor further added that the task of debt recovery has been arduous and challenging.
He lamented how AMCON’s effort has been thwarted as several Nigerian companies are unwilling to pay without legal battle.
“AMCON has continued to face resistance from a number of debtors who are unwilling to pay without a fight,” he stressed.
According to him, 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.
“These companies’ debts were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455, 171, 764, 772.80billion as at December 31, 2024.
“Arik owes AMCON N227,637,469,394.34bn; Rockson Engineering N163,502, 837, 397.75bn and Ojemai Farms N14, 031, 457, 980.71bn,” he said.
Nwauzor explained that no matter the smear campaign he is sponsoring against AMCON, these debts must be recovered one way or the other.
“The leadership of AMCON knows that there is no nice way of recovering debt. For that, obligors go to any length to assassinate the characters of both AMCON staff and Management, they malign the name of AMCON, intimidate, and harass our personnel with every arsenal at their disposal.
“Repeatedly, AMCON has made the point at every opportunity that all stakeholders including the media must view the AMCON mandate as one of serious national importance.
“If at sunset AMCON is unable to recover the huge debt of over N4trn, it becomes the debt of the Federal Government of Nigeria for which taxpayers’ monies will be used to settle. 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,” he said.
Arik’s debt originated from loans taken from Union Bank of Nigeria, Bank PHB (now Keystone Bank) and others.
AMCON explained that Union Bank classified the loan as non-performing and sold it in 2010, after warning Arik about its financial instability.
“If the loan was performing, why was it sold? Why did he agree to the restructuring? Did he fulfil the agreed terms?” Nwauzor questioned.
AMCON further revealed that Arik had a negative equity value of N80bn in 2016, with total liabilities reaching N289 bn.
By December 2016, the airline’s negative shareholder capital had surged to N139bn nearly equivalent to its AMCON debt.
Following years of financial distress, AMCON took over Arik in 2017, citing chronic mismanagement, flight cancellations, unpaid staff salaries, and regulatory violations. At the time, Arik was on the brink of collapse, struggling to maintain its aircraft and fulfill ticketed obligations.
Between November 2016 and January 2017, the airline suspended several operations, failed to pay for insurance, and owed around N30 bn to aviation regulators (NCAA, FAAN, and NAMA).
“The government, concerned about the safety of the airline, the welfare of over 1,500 employees, and the stability of the aviation industry, urged AMCON to intervene,” the agency stated.
In 2021, Arumemi-Ikhide challenged AMCON’s takeover in the Federal High Court, Lagos. However, Justice A. Lewis-Allagoa upheld the receivership, affirming AMCON’s exclusive authority to manage Arik.
“The validity of the receivership has been affirmed by the court and is not in question,” Nwauzor stated.
Nwauzor added that despite the court ruling, Sir Johnson Arumemi-Ikhide continues to dispute the debt, claiming that AMCON’s takeover was “premature” and that his loans were performing. He also accuses the receivership of mismanaging Arik’s fleet.
However, AMCON dismissed these claims as false, stating that when it took over, only eight aircraft were operational, far fewer than the 30 planes Arumemi-Ikhide claims were in service.
Some aircraft, AMCON alleged, had been used as collateral for personal debts and were later repossessed by creditors.
AMCON, created in 2010 to stabilise the banking sector, has faced severe resistance from debtors, who often resort to legal delays and media campaigns.
“The task of debt recovery has been arduous. If AMCON cannot recover these debts, the burden falls on taxpayers, the general public will be made to pay for the recklessness of a few individuals,” the Nwauzor warned.
