BY OLAPEJU OLUBI
The Asset Management Corporation of Nigeria (AMCON) has vowed to pursue the recovery of Arik Air’s N227,637,469,394.34 billion debt with total resolve, dismissing any attempts at intimidation, mob attack in the media and sponsored misinformation as futile.
The Corporation also noted that firms owned by Sir Johnson Arumemi-Ikhide, the promoter of Arik Air, Rockson Nigeria Limited (a power infrastructure company), Ojeimai Farms Limited and Ojemai Investment Limited are heavily exposed to AMCON.
These companies’ debts, it said, were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455, 171, 764, 772.80 billion as at December 31, 2024.
Addressing lingering concocted reports, AMCON clarified that the airline operated just eight functional aircraft at the time of its 2017 takeover, contrary to inflated claims of a 30-plane fleet.
The corporation emphasised its commitment to transparency, fiscal responsibility and its mandate to revitalise the aviation sector for the benefit of the Nigerian economy.
At a media briefing in Lagos today, Jude Nwauzor, AMCON’s Head of Corporate Communications, emphasised the need to address certain misconceptions surrounding Arik Air’s operations since the corporation assumed control on February 9, 2017.
He revealed that over the past eight years, AMCON has consistently injected significant financial support into the airline to sustain its operations.
Nwauzor further noted that AMCON’s takeover extended beyond Arik Air, as it also assumed control of three other companies owned by Johnson Arumemi-Ikhide. These included Rockson Nigeria Limited, a power infrastructure firm, as well as Ojeimai Farms Limited and Ojemai Investment Limited, all of which were linked to non-performing loans.
“The task of debt recovery has been arduous and challenging. 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.
“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 billion 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.
“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.”, he said.
The agency, accusing the founder of Arik Air of sponsoring several misleading claims regarding payment obligations to Union Bank, while feigning ignorance of the substantial debt owed to AMCON, clarified that the decision to classify the loan as non-performing and subsequently sell it was made by Union Bank of Nigeria (UBN).
According to Nwauzor, this was done in strict accordance with the Prudential Guidelines set forth by the Central Bank of Nigeria (CBN). AMCON, in full compliance with the law, then purchased the loans after they were willingly offered by Union Bank.
“In a letter dated October 22, 2010, UBN informed Arik that its loans, which amounted to a staggering $474 million (approximately ₦70 billion at the 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.”, he said.
Nwauzor further clarified that, contrary to the founder’s claims of 30 serviceable aircraft prior to AMCON’s intervention, only nine were actually operational.
Stressing that AMCON’s records from the 2017 takeover detailed the true status of the airline’s fleet, saying the aircraft in question included: 5N-MJA, a B737-300 abandoned in Norwich, UK; 5N-MJB, another B737-300 left in Southend, UK; 5N-MJC, a B737-700 that had been extensively cannibalized in Lagos; 5N-MJD, another B737-700 in a similar state in Lagos; 5N-MJG, a B737-700 requiring spare parts to return to service; 5N-MJI, a B737-700 abandoned in Malta; 5N-MJO, a B737-800 with an unserviceable engine due to excessive oil leakage; 5N-MJP, a B737-800 abandoned in Johannesburg, South Africa; and 5N-MJQ, a B737-800 left in Malta.
Additionally, B737-700s 5N-MJK and 5N-MJD were in long-term storage in Lagos, with the latter about to be repossessed by the bank. Similarly, B737-700 5N-MJC was also in long-term storage in Lagos, poised for repossession.
Other aircraft included Q400, 5N-BKX, and 5N-BKW, both serviceable and located in Lagos, along with a B737-700 in Addis Ababa undergoing a C-check.
Additionally, a B737-800 in Lagos was deemed serviceable, while Q400, 5N-BKV, was in long-term storage in Lagos and considered scrap.
The Corporation revealed that beyond Union Bank, Arik’s loans were also sold to AMCON by Bank PHB (now Keystone Bank), adding that Arumemi-Ikhide has, on several occasions, admitted to this indebtedness.
“Following the purchase of the loans, Sir Johnson willingly agreed to restructure the loans, acknowledging the debt. A KPMG report commissioned by AMCON revealed that Arik was balance-sheet insolvent, with a negative equity value of approximately ₦80 billion and total liabilities amounting to ₦289 billion as of December 31, 2016.
“Additionally, PwC Nigeria, the company’s long-standing auditors (previously appointed by Sir Johnson Arumemi-Ikhide), conducted audits for the years 2015 and 2016. These audits confirmed that Arik had been technically insolvent since 2014, with its liabilities exceeding its assets throughout 2015 and 2016, up until the commencement of the receivership in 2017. As of December 2016, Arik’s negative shareholder capital stood at ₦139 billion, nearly equivalent to its debt to AMCON.
“During this period, Arik’s operations were severely compromised. Between November 2016 and January 2017, Arik faced numerous challenges, including the cancellation of flights, inability to fulfill ticketed obligations, and a suspension of operations due to failure to pay for insurance.
“The airline was also engaged in protracted disputes with NCAA, FAAN, and NAMA, with combined claims of about ₦30 billion.
“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. As a result, AMCON appointed a Receiver-Manager in compliance with the AMCON Act to stabilize the operations of Arik.”, Nwauzor added.
He stated that AMCON’s resolve is to recover the debts and ensure accountability, stressing that it will not be swayed by false narratives or malicious campaigns.
“Amongst several inaccurate claims, the founder of Arik, Sir Johnson Arumemi-Ikhide, has consistently peddled a false narrative regarding his debt to AMCON, claiming that Arik never defaulted in its payment obligations to Union Bank and feigning ignorance of the debt owed to AMCON.
“He has also alleged that the receivership was premature and claimed his loan was performing.
“These claims are misleading. The intelligent public must ask, if the loan was performing, why was it sold and restructured? And why did he agree to the restructuring? Did he fulfill the agreed terms?” AMCON queried.
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