The Asset Management Corporation of Nigeria (AMCON) has announced the recovery of over N2.1 trillion in debts despite ongoing challenges since its inception.

However, the agency still faces over 2,000 court cases, as some debtors failed to utilise their borrowed funds for their intended purposes.

Speaking at a press conference yesterday in Lagos, AMCON?s Head of Corporate Communications, Mr. Jude Nwauzor, addressed the debt burden of Arik Air Limited (in Receivership) and its founder, Sir Johnson Arumemi-Ikhide, reaffirming AMCON?s determination to recover N227.6 billion owed by the airline.

According to Nwauzor, many debtors manipulate the media to misrepresent AMCON?s efforts, painting the corporation in a negative light.

?These are individuals whose actions have severely impacted the Nigerian economy. The media must not allow them to rewrite the narrative,? he stated.

He emphasised the importance of collaboration between AMCON and the media to ensure factual reporting on debt recovery efforts.

Nwauzor detailed that Arik Air Limited (in Receivership) is one of AMCON?s major debtors, alongside other companies owned by Sir Johnson Arumemi-Ikhide, including Rockson Engineering, Ojemai Farms, and Ojemai Investment Limited.

As of December 31, 2024, these companies owe AMCON a staggering N455.17 billion, with breakdowns as follows: Arik Air Limited ? N227.6 billion, Rockson Engineering ? N163.5 billion, and Ojemai Farms ? N14.03 billion

Nwauzor dismissed claims by Arumemi-Ikhide that Arik Air never defaulted on its loans.

He challenged the airline founder to disclose whether he indeed took the loans and, if so, to explain his repayment efforts.

?If the loan was performing, why was it sold and restructured? Why did he agree to the restructuring? Did he fulfill the agreed terms?? Nwauzor questioned.

AMCON revealed that Arik?s debt originated from loans acquired from Union Bank of Nigeria, Bank PHB (now Keystone Bank), and others. In 2010, Union Bank classified the loan as non-performing and transferred it to AMCON after warning Arik about its financial instability.

He said, ?By 2016, Arik Air had a negative equity value of N80 billion and total liabilities of N289 billion. By December 2016, the airline?s negative shareholder capital surged to N139 billion, nearly matching its AMCON debt.

?In 2017, AMCON took over Arik Air, citing chronic mismanagement, flight cancellations, unpaid staff salaries, and regulatory violations. The airline was on the verge of collapse, unable to maintain its fleet or fulfill ticketed obligations.

?Between November 2016 and January 2017, Arik suspended several operations, failed to pay for insurance, and owed N30 billion to aviation regulators, including the NCAA, FAAN, and NAMA. The government, concerned about aviation safety and over 1,500 employees? jobs, urged AMCON to intervene.

?In 2021, Arumemi-Ikhide challenged AMCON?s receivership in the Federal High Court, Lagos, but Justice A. Lewis-Allagoa upheld AMCON?s authority, affirming the legitimacy of the takeover.?

He said despite this ruling, Arumemi-Ikhide continued to contest the debt, claiming AMCON mismanaged Arik?s fleet and that his loans were still performing.

AMCON, however, countered these claims, revealing that when it took over, only eight aircraft were operational, contradicting Arumemi-Ikhide?s assertion of 30 functioning planes.

Some of Arik?s aircraft, AMCON added, had been used as collateral for personal debts and were later repossessed by creditors.

AMCON, established in 2010 to stabilise Nigeria?s banking sector, has faced significant resistance from debtors, many of whom exploit legal loopholes to avoid repayment.

?If AMCON cannot recover these debts, the burden falls on taxpayers. The general public will end up paying for the recklessness of a few individuals,? Nwauzor warned.

He urged the media and the public to hold debtors accountable, emphasising that AMCON remains committed to recovering all outstanding obligations, including those of Arik Air and its affiliates. (THISDAY)

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