Photo Caption:
Head, Corporate Communications Department AMCON, Mr. Jude Nwauzor, while speaking to the media at a recent business luncheon with strategic media stakeholders of AMCON at the Radisson Blu Hotel, Ikeja on Friday February 17th.
The Asset Management Corporation of Nigeria (AMCON) has vowed that it will recover Arik Air, Rockson Engineering, Ojemai Farms Limited, Ojemai Investment Limited debt of N455, 171, 764, 772.80 billion owned by Sir Johnson Arumemi-Ikhide as at December 31, 2024.
Speaking in Lagos on Friday during a business luncheon with strategic media stakeholders of AMCON at the Radisson Blu Hotel, Ikeja, the Head, Corporate Communications Department AMCON, Mr. Jude Nwauzor, gave the breakdown of the debt as: Arik owes AMCON N227,637,469,394.34 billion; Rockson Engineering N163,502, 837, Ojemai Investment, 397.75billion and Ojemai Farms N14, 031, 457, 980.71 billion.
Nwauzor stated that these companies’ debts were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455, 171, 764, 772.80 billion as at December 31, 2024.
He stated that no matter the smear campaign Arumemi is sponsoring against AMCON, these debts must be recovered one way or the other.
He explained that: “At AMCON, we see the Media as very strategic to our recovery mandate because most of these obligors run to the media with some skewed narratives in their desperation to make AMCON look bad. The point remains that these are debtors that have contributed to killing the Nigerian economy. The media must not allow them to eat their cake and have it.
As the media is the mirror of society, the management of AMCON is convinced that a deeper collaboration between AMCON and the Media will deliver positive dividends for the country. We believe that when these obligors who own most of the private jets you see at our airports are challenged by the media, they will not be as bold and audacious as they have become”.
Nwauzor stated these are debtors that have contributed to killing the Nigerian economy.
The Head, Corporate Communications Department AMCON, noted that the task of debt recovery has been arduous and challenging.
According to him: “While several thousands of Nigerians and Nigerian companies have honoured their obligations, AMCON continues to face resistance from a number of debtors who are unwilling to pay without a fight. One of these debtors is Arik Air Limited (in Receivership), an airline company owned by Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nigeria Limited (a power infrastructure company), Ojeimai Farms Limited, and Ojemai Investment Limited”.
Nwauzor stated that the leadership of AMCON knows that there is no nice way of recovering debt.
He said: “For that, obligors go to any length to assassinate the characters of both AMCON staff and Management, they malign the name of AMCON, intimidate, and harass our personnel with every arsenal at their disposal. Repeatedly, AMCON has made the point at every opportunity that all stakeholders including the Aviation Media must view the AMCON mandate as one of serious national importance. If at sunset AMCON is unable to recover the huge debt of over N4trillion, it becomes the debt of the Federal Government of Nigeria for which taxpayers’ monies will be used to settle. The implication is that the general public will be made to pay for the recklessness of only a few individuals who continue to take advantage of the loopholes in our laws to escape their moral and legal obligations to repay their debts”.
He continued that: “The question AMCON would want the media to ask Sir Johnson Arumemi-Ikide is if indeed he took these loans that led the banks to sell the loans to AMCON. If his answer is yes, the aviation media should also be interested in his effort(s) at repayment. Arik Air Limited’s Indebtedness under the Management of Sir Johnson amongst several inaccurate claims, the founder of Arik, Sir Johnson Arumemi-Ikhide, has consistently peddled a false narrative regarding his debt to AMCON, claiming that Arik never defaulted in its payment obligations to Union Bank and feigning ignorance of the debt owed to AMCON.
He has also alleged that the receivership was premature and claimed his loan was performing.
These claims are misleading. The intelligent public must ask, if the loan was performing, why was it sold and restructured? And why did he agree to the restructuring? Did he fulfill the agreed terms?The decision to classify the loan as non-performing and to sell it was made by Union Bank of Nigeria PLC (UBN), in accordance with the Prudential Guidelines set by the Central Bank of Nigeria (CBN). Union Bank willingly offered the Arik loans to AMCON, which purchased the loans in compliance with the law.In a letter dated October 22, 2010, UBN informed Arik that its loans, which amounted to a staggering $474 million (approximately ₦70 billion at the time), were non-performing and posed a threat to the bank’s stability. This loan exposure was a significant factor in Union Bank’s financial challenges. It is important to note that beyond Union Bank, Arik’s loans were also sold to AMCON by Bank PHB (now Keystone Bank), and Sir Johnson Arumemi-Ikhide has, on several occasions, admitted to this indebtedness. Following the purchase of the loans, Sir Johnson willingly agreed to restructure the loans, acknowledging the debt. In any event, any challenge of the purchase of the NPLs by AMCON is statute-barred and there are provisions within the AMCON Act demonstrating that there is no valid cause of action that may arise from such a challenge”.
Nwauzor explained that from 2011 to 2017, AMCON engaged in prolonged negotiations with Arik’s management (who never questioned the NPLs), but despite several financial accommodations, debt reduction offers, and restructuring efforts, Arik consistently defaulted on its obligations.
He noted that AMCON was left with no choice because Arik was plagued by insolvency and operational paralysis.
In his words: “The company’s financial condition was catastrophic. A KPMG report commissioned by AMCON revealed that Arik was balance-sheet insolvent, with a negative equity value of approximately ₦80 billion and total liabilities amounting to ₦289 billion as of December 31, 2016.Additionally, PwC Nigeria, the company’s long-standing auditors (previously appointed by Sir Johnson Arumemi-Ikhide), conducted audits for the years 2015 and 2016. These audits confirmed that Arik had been technically insolvent since 2014, with its liabilities exceeding its assets throughout 2015 and 2016, up until the commencement of the receivership in 2017”.
He said as at December 2016, Arik’s negative shareholder capital stood at ₦139 billion, nearly equivalent to its debt to AMCON, adding that during this period, Arik’s operations were severely compromised.
Between November 2016 and January 2017, Arik faced numerous challenges, including the cancellation of flights, inability to fulfill ticketed obligations, and a suspension of operations due to failure to pay for insurance. The airline was also engaged in protracted disputes with NCAA, FAAN, and NAMA, with combined claims of about ₦30 billion.The government, concerned about the safety of the airline, the welfare of over 1,500 employees, and the stability of the aviation industry urged AMCON to intervene, Nwauzor said.
He pointed out that the state of affairs at the commencement of Receivership when the Receivership Team took over Arik, the company was financially stranded and facing imminent shutdown as the airline had no adequate cash reserves, and its operations were near collapse.
He explained further that critical maintenance was overdue, many planes were grounded, and the company owed substantial sums to various service providers, including Maintenance Repair Organisations (MROs), who had withdrawn their services.
Nwauzor added that Arik’s on-time performance (OTP) was below 40%, with many flights being cancelled due to inadequate working capital, while
the staffing issues were severe, with employees going unpaid for months and critical training suspended due to lack of funds.
He maintained that insurance policies had expired, and the company was heavily indebted to multiple service providers, including federal aviation agencies and international operators.
Nwauzor said Arumemi-Ikhide has also made misleading claims regarding the mismanagement of Arik’s fleet under the receivership.
He emphasized that on taking over the company, the Receivership Team found a fleet in disarray, with only eight operational aircraft (as against the inaccurate 30 being bandied about), many of which required urgent maintenance, while some of the planes had been used as collateral for Sir Johnson’s personal debts, leading to repossession by creditors.
According to him: “Certain publications have raised the issue of the charge filed by the EFCC in relation to Arik’s issues, attempting to suggest that this absolves Sir Johnson Arumemi-Ikhide of his indebtedness to AMCON. However, the existence of a criminal charge does not detract from his obligations. No determination of criminality has been made in these matters, and AMCON remains resolute in its efforts to recover the debts owed by Arik and its shareholders. Sir Johnson’s refusal to settle the debts owed is a disservice to the commonwealth and the Nigerian people”.
Nwauzor said AMCON assures the public that while the recovery process may take time, they remain committed to achieving an optimal recovery from Arik and its shareholders.
