The Asset Management Corporation of Nigeria (AMCON) has announced the recovery of over ₦2.1 trillion for the Federal Government, despite facing significant resistance from debtors. The corporation also disclosed that it currently has over 2,000 court cases, as many debtors failed to use borrowed funds for their intended purposes. Speaking at a media briefing in Lagos over the weekend, AMCON’s Head of Corporate Communications, Mr. Jude Nwauzor, reiterated the corporation’s unwavering commitment to recovering outstanding debts—particularly the ₦227.6 billion owed by Arik Air Limited (in Receivership) and its founder, Sir Johnson Arumemi-Ikhide. Legal Battles and Resistance from Debtors AMCON reaffirmed its determination to reclaim the ₦227.6 billion debt from Arik Air and its founder, despite ongoing legal disputes and allegations of mismanagement. “At AMCON, we recognize the media as a strategic partner in our recovery mandate. Many of these debtors attempt to manipulate public perception by spreading misleading narratives to discredit AMCON,” Nwauzor stated. “The reality is that these individuals have contributed to crippling the Nigerian economy. The media must not allow them to mislead the public.” He emphasized that deeper collaboration between AMCON and the media would be beneficial in holding debtors accountable. Nwauzor further described debt recovery as a challenging task, given the reluctance of several companies to settle their obligations without legal battles. “AMCON continues to face resistance from debtors who refuse to pay without a fight,” he said. “One of the key debtors is Arik Air Limited (in Receivership), owned by Sir Johnson Arumemi-Ikhide, who also controls Rockson Nigeria Limited (a power infrastructure firm), Ojemai Farms Limited, and Ojemai Investment Limited. “These companies’ debts were acquired by AMCON after being classified as non-performing loans by various banks. As of December 31, 2024, their total indebtedness stood at ₦455.17 billion: Arik Air owes ₦227.64 billion Rockson Engineering owes ₦163.50 billion Ojemai Farms owes ₦14.03 billion” Addressing Allegations Against AMCON Nwauzor dismissed allegations against AMCON as an orchestrated smear campaign, emphasizing that the corporation remains committed to recovering these debts. “The truth is, there’s no pleasant way to recover debts. Because of this, some debtors resort to character assassination, intimidation, and harassment against AMCON personnel,” he said. “If AMCON fails to recover over ₦4 trillion in debts, the burden falls on the Federal Government, meaning taxpayers’ money will be used to settle these obligations.” He urged the media to question Arumemi-Ikhide on whether he genuinely took these loans and, if so, what efforts he has made toward repayment. “Despite his claims, the public must ask: If his loans were performing, why were they sold to AMCON? Why did he agree to a restructuring plan? Did he meet the terms of the agreement?” According to AMCON, Union Bank initially classified Arik Air’s loans as non-performing and sold them in 2010 after warning the airline about its financial instability. Arik Air’s Financial Troubles and AMCON’s Intervention By 2016, AMCON revealed, Arik Air had a negative equity value of ₦80 billion, with total liabilities surging to ₦289 billion. By December 2016, its negative shareholder capital had worsened to ₦139 billion—nearly equivalent to its debt to AMCON. “Due to persistent financial distress, AMCON took over Arik Air in 2017. The airline was plagued by mismanagement, frequent flight cancellations, unpaid staff salaries, and regulatory violations. “At the time, Arik was on the brink of collapse, struggling to maintain its aircraft and meet passenger obligations. Between November 2016 and January 2017, the airline suspended several operations, defaulted on insurance payments, and owed about ₦30 billion to aviation regulators, including the NCAA, FAAN, and NAMA.” Given these challenges, the government urged AMCON to intervene, prioritizing passenger safety, employee welfare, and stability within the aviation industry. In 2021, Arumemi-Ikhide challenged AMCON’s takeover in the Federal High Court, Lagos. However, Justice Lewis-Allagoa upheld AMCON’s receivership, affirming the corporation’s legal authority over Arik Air. “The validity of the receivership is not in question; it has been affirmed by the court,” Nwauzor stated. Debunking Claims About Arik’s Fleet Despite the legal ruling, Arumemi-Ikhide continues to dispute the debt, arguing that AMCON’s intervention was premature and that his loans were not in default. He also claims that the receivership has mismanaged Arik’s fleet. AMCON refuted these assertions, stating that when it assumed control, only eight aircraft were operational—far fewer than the 30 planes Arumemi-Ikhide claims were in service. “Some of these aircraft had been used as collateral for personal loans and were subsequently repossessed by creditors,” AMCON alleged. AMCON’s Broader Debt Recovery Challenges Since its creation in 2010 to stabilize the banking sector, AMCON has encountered resistance from debtors who often exploit legal loopholes and media influence to delay repayments. “The process of debt recovery has been extremely difficult. However, if AMCON fails to reclaim these funds, the financial burden will ultimately fall on the general public,” Nwauzor warned. “The Nigerian people should not have to bear the cost of a few individuals’ financial recklessness.”
