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•Demand accountability
By Chinelo Obogo
In the ongoing dispute surrounding Arik Air’s financial struggles, the airline’s shareholders have vehemently denied allegations made by the Asset Management Corporation of Nigeria (AMCON) that the airline was already in severe financial distress when AMCON took over in 2017.
The spokesperson for Arik’s shareholders, Godwin Aideloje, issued a statement on Sunday, refuting AMCON’s claims, describing them as misleading and dishonest. According to Aideloje, the root cause of Arik’s financial issues lies not in the airline’s management but in AMCON’s poor stewardship of the company since its takeover.
AMCON stated last Friday that, as of December 31, 2024, the airline’s founder, Mr Johnson Arumemi-Ikhide, along with other associated companies, owed AMCON N455,171,764,772.80.
The Corporation’s Head of Corporate Affairs, Jude Nwauzor, denied the accusation that Arik Air had met its financial obligations before being placed under receivership, providing a breakdown of the debts.
According to him, as of December 2024, Arik owed AMCON N227.6 billion, Rockson Engineering owed N163.5 billion, and Ojemai Farms owed N14 billion.
Nwauzor further claimed that Arumemi-Ikhide had signed restructured agreements with AMCON but failed to honor his repayment commitments.
Aideloje, however, argued that AMCON’s actions since its intervention have contributed significantly to Arik’s worsening financial condition.
He pointed to the seizure of a Boeing 737-800NG in Lithuania in 2023, which was the result of AMCON’s failure to meet financial obligations. “Another Boeing 737-700NG was abandoned in Malta, later dismantled and sold on the grey market, while two other aircraft were left in poor condition in Johannesburg and Addis Ababa,” he said. “These are clear examples of how AMCON mishandled Arik’s assets.”
Aideloje also accused AMCON of intentionally orchestrating the airline’s financial collapse, alleging that the decision to place Arik Air under receivership was finalized during a February 2017 meeting of the Central Bank of Nigeria’s (CBN) Governors Committee, without proper due process. He argued that the receivership was not a genuine attempt to rescue the airline but a calculated move to bankrupt it. Additionally, Aideloje pointed to AMCON’s March 2017 directive to Arik’s receiving banks, which halted the servicing of the airline’s obligations and exacerbated its financial crisis.
Before AMCON’s intervention, Aideloje stated that Arik Air had been valued at $3.7 billion by Deloitte, but under AMCON’s management, the airline’s fleet and reputation in Africa’s competitive aviation market suffered. “Under AMCON’s receivership, Arik Air did not default on its financial obligations. Instead, it was AMCON’s interference that led to the airline’s decline,” he said.
In support of his claims, Aideloje referenced a recent legal challenge in London, where AMCON’s mismanagement led to a $400,000 court judgment for unpaid wet lease fees. He argued that AMCON’s mismanagement had not only damaged the airline but also caused embarrassment for Nigeria on the global stage due to its failure to meet contractual obligations.
Aideloje also addressed AMCON’s claims regarding Ojemai Farms, clarifying that the matter had already been resolved years ago with a court-affirmed settlement. He criticized AMCON for its interference in power projects involving Rockson Engineering Nigeria Limited, noting that AMCON’s actions had caused delays in the completion of power projects that were already 80% finished before the receivership.
“AMCON’s mismanagement of Arik Air has caused immeasurable harm to the airline, its employees, and Nigeria’s image,” Aideloje concluded. “AMCON must stop spreading misinformation and be held accountable for the destruction it has caused”, he stated.
