Shareholders of Arik Air, the indigenous airline currently under the control of the Asset Management Corporation of Nigeria (AMCON), have refuted claims that the debt owed by the airline’s owner, Johnson Arumem-Ikhide, has risen to N455 billion.
In a statement issued by their representative, Godwin Aideloje, the shareholders described AMCON’s debt figures as a “fallacy.” This follows a recent assertion by AMCON’s Head of Corporate Communications, Jude Nwauzor, who claimed that the total debt of Arumem-Ikhide amounted to N455.17 billion as of December 31, 2024, across his three investments, including Arik Air.
According to Nwauzor, the breakdown of the debt is as follows: Arik Air owes AMCON N227.6 billion, Rockson Engineering owes N163.5 billion, and Ojemai Farms owes N14 billion, bringing the total debt to N455 billion. He emphasized that AMCON’s intervention in February 2017 had saved the airline from liquidation, asserting that the corporation is determined to recover the debts from the various businesses connected to Arik Air.
However, in response to these claims, Arik’s shareholders refrained from commenting further, stating that the matter is currently before the courts. “This is a matter before the court. Unlike AMCON, who have no respect for the courts, we will not resort to subjudicial remarks,” the shareholders said, distancing themselves from what they termed AMCON’s attempt to undermine the judiciary. They also dismissed the N455 billion debt claim as unsubstantiated, referencing a Federal High Court judgment from March 31, 2023, which ordered AMCON to file a statement of affairs and audited financial reports with the Corporate Affairs Commission for reconciliation.
The shareholders noted that AMCON had failed to appear before the Financial Reporting Council to defend its claims, instead opting to upload the airline’s audited accounts to its website, a move they rejected.
AMCON, which took over the management and operations of Arik Air in 2017 due to the airline’s financial troubles, has maintained that its intervention was necessary to prevent the airline’s collapse. In a statement, Nwauzor stressed that without AMCON’s intervention, Arik Air would have been sold as a whole. However, Aideloje, the shareholders’ representative, criticized this assertion, labeling it a misrepresentation of the Federal Government’s role. “This is a gross misrepresentation of the Federal Government as being in the business of arbitrary takeovers of private businesses,” he said.
The shareholders further emphasized that Arik Air had been a key player in Nigeria’s aviation sector prior to the takeover, with operational excellence recognized by global institutions. Recently, Afreximbank had praised the airline as a model for Africa at an International Aircraft Leasing and Finance Conference in Dublin, Ireland.
This ongoing dispute highlights the tensions surrounding AMCON’s management of Arik Air, as both sides continue to navigate the complex legal and financial challenges surrounding the airline’s future.
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