AMCON: Wrestling With Reckless Industrialists To Recoup Over N4trillion Tax Payers’ Money

One of the numerous industrial startups supported by AMCON to fruition

The Asset Management Corporation of Nigeria, AMCON, has revealed that it has resolved to ensure the recovery of all the debts owed the corporation by businesses and investors of various persuasions because the funds loaned to businessmen and women are taxpayers’ money generated by their resilience and from the sweats of Nigerian labour in creating wealth for the country.

Hence, the facilities extended to businesses are intended to be recouped at the expiration of their tenor and with the view to extend similar facilities to other ongoing concerns in all sectors of the national economy for their survival, growth, development and wealth creation to the national economy.

In light of the above principle and the mandate by which the Asset Management Corporation of Nigeria, AMCON, must execute its daunting tasks, especially the aspect of debt recovery, the organization has publicly pledged that the debt of Arik Airline to AMCON shall be recovered in its entirety.

AMCON CREW; (L-R): Head, Legal Dept, Mr Albert Nwanozie; Head, Corporate Comms, Mr Jude Nwauzor; Company Secretary, Mrs Oyinlola Adebayo, Team Member of Corporate Comms Dept, Mr Kenneth Ohiri; Head of Litigation, Mr. Norbert Enenmoh, and the Technical Assistant to the Managing Director/CEO, Mr Mohammed Yusuf at a recent business luncheon with strategic media stakeholders of AMCON at the Radisson Blu Hotel, Ikeja

At a media parley over the weekend with the senior editors in air transport news management, AMCON gave an update on the status of Arik Airline’s debt portfolio revealing that, as of 31st December 2024, Arik Air owes AMCON accumulated debt amounting to N227,637,469,394.34 billion only.

The lead speaker at the event, Head of the Corporate Communications Department, AMCON, Mr. Jude Nwauzor, said that AMCON’s mandate is one of very serious national importance which is to recover the huge debt of over N4trillion owed by various entrepreneurs.

The record presented by AMCON also revealed that the Chairman of Arik Air, Sir Johnson Akinola Arumemi-Ikhide, through two other companies where he served as Chairman acquired additional loans on behalf of Rockson Engineering, which now amounts to N163,502, 837, 397.75billion. And the third company, Ojemai Farm’s indebtedness amounts to N14, 031, 457, 980.71 billion only.

**Sir Johnson Akinola Arumemi-Ikhide, Proprietor of Arik Air**

According to AMCON, total loans recoverable but are now overhung in the businesses of Sir Johnson Akinola Arumemi-Ikhide, which were all transferred to AMCON from various banks for becoming toxic have amounted to the sum of N455, 171, 764, 772.80 billion as at 31st December 2024.

Arik Airline’s share of the debt is, although the entire debt which now amounted to N455, 171, 764, 772.80 billion only, as of 31st December 2024, is to be recovered by AMCON who bought them over from Union Bank and Bank PHB (now Keystone Bank) respectively.

Preventing the Proletariat from Paying for the Recklessness of Debtor Bourgeoisie- AMCON

For the umpteenth time, AMCON has reiterated that its mandate is one of very serious national importance.

The corporation has severally claimed that it had an obligation to ensure the debt burden is not allowed to spill over to the Nigerian masses.

The media narration claimed, “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”.

It further explains that “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”.

Succinctly put over ten per cent – 10%- of the total debt recoverable nationwide by AMCON, from Nigerian industrialists is owed by three companies that are owned by an individual who is the chief promoter of the three firms. “Arik owes ₦227,637,469,394.34 billion; Rockson Engineering owes ₦163,502,837,397.75 billion, and Ojemai Farms owes ₦14,031,457,980.71 billion.”

**Economic regulation of operators is now being rejuvenated** by the CAA

HOW ARIK AIR’S LOAN MAINTAINS A STEADY RISE IN VALUE AND BECOMES TOXIC

According to AMCON, prior to the year 2010, Arik Airline took a facility for its operations from Union Bank Plc. Over time, Union Bank Plc, UBP, classified the loan as non-performing.

It was a piece of public knowledge in the banking arena that the void created by the non-performing loan was among the factors that threatened the financial well-being of the bank and shook it to its very foundation.

Hence, Union Bank of Nigeria, UBN, in a letter dated 22nd October 2010, informed Arik that its loans, which amounted to a staggering $474 million (approximately ₦70 billion at the time), were non-performing and constituted a threat to the bank’s stability.

According to AMCON, UBN approached the corporation to sell the loan, following the Prudential Guidelines set by the Central Bank of Nigeria (CBN). Also, Arik Air’s debt to Bank PHB, now Keystone Bank, was sold to AMCON, and Sir Johnson Arumemi-Ikhide had on several occasions admitted to this indebtedness.

**Arik workers at the main entrance to its headquarters, demonstrating against accumulated salaries owed the workers.**

The AMCON narrative noted that, following the purchase of the loans, Sir Johnson willingly agreed to restructure the loans, acknowledging the debt but not once was any agreement reached honoured.

Ipso facto, the total debt of N70bn by Arik Air in 2010, has risen to N227,637,469,394.34 billion as at 31st December 2024.

On engaging the instrumentality of a weak legal system to scuttle the spirited recovery efforts, AMCON argued thus, “any challenge of the purchase of the None Performing Loans, 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”.

On all the debt bought-back the chairman of Arik, Sir Johnson Arumemi Ikhide agreed hence, a series of meetings were held to reschedule and restructure the facility to make it easier for the debtor to service.

The corporation revealed to its consternation that the debtor, Arik Air, through its Chairman, Sir Johnson Arumemi-Ikhide, did not fulfil any of the agreed terms.

**Arik Air Pilots in the cockpit of a** **Bombardier Q-400 aircraft owned by Arik**

About the records kept by AMCON, the corporation says, “From 2011 to 2017, AMCON engaged in prolonged negotiations with Arik’s management (who never questioned the None Performing Loans, NPLs), but despite several financial accommodations, debt reduction offers, and restructuring efforts, Arik consistently defaulted on its obligations. And AMCON was left with no choice but to consider various recovery options” which included receivership or outright liquidation”.

Albeit, at this juncture, it is obvious these facilities credited to Sir Johnson Arumemi-Ikhide, and his three companies have become exponentially toxic to both the borrower and the lender/debt purchaser.

AMCON however, confessed that “Managing these debts was challenging for the corporation, which still can liquidate Arik. But here we are still managing Arik, which was already insolvent and still insolvent even as at the close of work on Friday, 17th January 2025.

AMCON’S FIRM PLEDGE TO RECOVER TAXPAYERS’ FUND
Firstly, the management of the corporation has placed the issue of the charge filed by the EFCC about Arik’s issue in perspective. The corporation averred that the EFCC case with the corporation does not in any way, absolve Sir Johnson Akinola Arumemi- Ikhide of his indebtedness to AMCON.

However, AMCON submitted that “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”.

AMCON also is expressly unambiguous about its inviolable, and indissoluble resolve to ensure that no fraction of the N4 trillion debt is passed on to the nation’s wealth creator- labour- but is recouped from the borrowers.
Time will tell.