Arik Air is an indigenous airline that is currently controlled by the Asset Management Corporation of Nigeria. Its shareholders have refuted reports that the amount of debt owed to its owner, Johnson Arumem-Ikhide, has increased to N455 billion.
The shareholders characterised the debt record of AMCON against the creator of Arik as a falsehood in a statement signed by Godwin Aideloje, their representative.
According to Jude Nwauzor, AMCON’s Head of Corporate Communication, Arumem-Ikhide’s total debt as of December 31, 2024, across all three of his ventures was N455.17 billion.
Asserting that it would guarantee the recovery of all debts due to the company by different business groups in Arik Air, AMCON also stated that its intervention in the ailing airline in February 2017 prevented the carrier from going out of business.
Nwauzor provided a breakdown of the entire debt, claiming that as of December 2024, Arik owed AMCON N227.6 billion, Rockson Engineering N163.5 billion, and Ojemai Farms another N14 billion, for a total of N455 billion.
In response, Arik’s stockholders stated that the case was still pending in court and declined to comment.
“The court is considering this issue. We shall refrain from using derogatory language, unlike AMCON, which has no regard for the legal system. We refuse to support AMCON’s frantic effort to abuse the legal system and corrupt it.
“Mr. Jude Nwauzor’s false allegation of N455 billion in Arik Air debt to AMCON is a misconception. AMCON has a stake in shady narratives and lies.
“AMCON’s claim in Suit No. FHC/L/CS/175/17, which placed Arik Air into receivership and gave it complete control and administration of the airline’s operations, assets, and liabilities, refutes this allegation, the statement said.
The shareholders recalled a March 31, 2023, Federal High Court ruling that required AMCON and its Receiver Manager to submit audited financial reports and a statement of affairs to the Corporate Affairs Commission to balance and compare the books.
According to Aideloje, AMCON declined to appear before a Financial Reporting Council to defend its stances.
The shareholders claimed that instead of appearing before the reporting council, AMCON posted the business’s audited account on the Arik Air website. The shareholders also rejected this document.
At the press briefing, AMCON’s Head of Corporate Communication stated that, given Arik Air’s insolvency at the time of the takeover, the airline would have been sold in its own right if not for the Nigerian government’s intervention, which mandated that the airline be managed.
“It is instructive to note that the new version of the reason why AMCON took over Arik is a government mandate,” Aideloje emphasised in the shareholders’ response.
“What a ridiculous comment from a government official in Nigeria! This is an egregious distortion of the Nigerian government’s involvement in the arbitrary acquisition of private companies. Indeed, AMCON is doing the Nigerian government and people a disservice with this.
“We would like to reiterate that Arik Air was acknowledged for its operational competence and noteworthy contributions to Nigeria’s aviation industry before the violent takeover.
“Afreximbank recently recognised legacy Arik as a model in Africa at a recently concluded International Aircraft Leasing and Finance Conference in Ireland, Dublin, demonstrating that the airline was fulfilling its financial obligations despite AMCON’s assertions.”
