N455.17bn Arik Air’s troubled debts: AMCON lays bare indebtedness of Sir Johnson Arumemi-Ikhide
The Asset Management Corporation of Nigeria (AMCON) has once again raised concerns about the mounting debts owed by Arik Air Limited (in Receivership) and its founder, Sir Johnson Arumemi-Ikhide.
Speaking at a media briefing, the Head of Corporate Communications at AMCON, Mr. Jude Nwauzor, underscored the gravity of the situation and the impact of these debts on the Nigerian economy.
He disclosed that Arik Air Limited, alongside its affiliated companies – Rockson Engineering, Ojemai Farms, and Ojemai Investment – owes a staggering N455.17 billion as of December 2024.
Jude further highlighted that Arik alone accounts for N227.64 billion, with Rockson Engineering and Ojemai Farms owing N163.5 billion and N14.03 billion, respectively.
Despite ongoing efforts to recover these debts, AMCON revealed that Arik Air’s management under Sir Johnson Arumemi-Ikhide has engaged in a sustained campaign of misinformation, alleging that the loans were not non-performing and questioning the legality of the receivership.
“Sir Johnson Arumemi-Ikhide has continuously sought to distort the facts, claiming Arik never defaulted on its obligations. However, the records speak for themselves,” Jude stated.
He said the origins of the debt crisis can be traced back to 2010 when Union Bank of Nigeria classified Arik’s loans – totalling $474 million – as non-performing, prompting the sale of these loans to AMCON.
Despite restructuring agreements and various accommodations, Arik failed to meet repayment terms, leaving AMCON with no option but to initiate recovery measures.
AMCON took over Arik in February 2017 under a receivership arrangement, citing the airline’s insolvency and operational challenges.
Jude noted that by December 2016, Arik’s liabilities had ballooned to N289 billion, with a negative shareholder equity of N139 billion. Audits by PwC Nigeria confirmed that Arik had been technically insolvent since 2014.
Before the receivership, Arik Air faced severe operational disruptions, including cancelled flights, grounded aircraft, unpaid employees, and unpaid debts to aviation agencies.
AMCON’s intervention, endorsed by the Federal Government, was aimed at stabilising the airline, safeguarding jobs, and restoring confidence in the aviation sector.
The legality of the receivership was affirmed by the Federal High Court in Lagos, which upheld the Receiver-Manager’s authority to oversee Arik’s affairs.
AMCON reiterated that failure to recover the debts would result in taxpayers shouldering the financial burden, calling for national unity in addressing the issue.
As AMCON continues its recovery efforts, the Corporation appealed to the aviation media to challenge obligors like Sir Johnson Arumemi-Ikhide to take responsibility for their financial obligations.
“This is not just a financial issue; it is a matter of national interest. The Nigerian people should not pay the price for the recklessness of a few,” AMCON emphasised.
He said despite attempts to smear AMCON’s reputation, the agency remains resolute, affirming that it will leave no stone unturned in its mission to recover the debts owed by Arik Air and its affiliates.
AMCON called on obligors to be accountable nothing that the aviation industry, which represents a critical component of Nigeria’s economy, must not be jeopardised by the failure of individuals to meet their obligations.
The commission also called on the public, media, and stakeholders to support AMCON’s mandate, ensuring that the country’s resources are protected for future generations.
