The Asset Management Corporation of Nigeria (AMCON)  says it is determined to recover N227 billion debt from Arik Air.

The Head, Corporate Communications of AMCON, Mr Jude Nwauzor, made this known during an interactive session with aviation correspondents on Friday in Lagos.

According to him, AMCON’s plan to liquidate Arik Air is still on as efforts to revive the airline have so far proved abortive.

He said that the actions of the Assest Management Corporation of Nigeria, a debt recovery agency, is backed by Sections 6 and 48 of the AMCON Act.

Nwauzor said that the meeting was to clarify some misrepresentations on the issue.

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“Assest Management Corporation of Nigeria continues to face resistance from a number of debtors who are unwilling to pay without a fight.

“One of these debtors is Arik Air Ltd. (in Receivership), an airline company owned by Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nig. Ltd. (a power infrastructure company), Ojeimai Farms Ltd. and Ojemai Investment Ltd.

“These companies’ debts were transferred by various banks to Assest Management Corporation of Nigeria due to their non-performance, with a total indebtedness of N455.17 billion as at Dec. 31, 2024.

“The decision to classify the loan as non-performing was made by Union Bank of Nigeria, in accordance with the Prudential Guidelines of Central Bank of Nigeria,” he said.

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He said that, in a letter dated Oct. 22, 2010, the bank informed Arik that its loans, which amounted to  N70 billion at that 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.”

Nwauzor added that Arik Air owed AMCON N227.63 billion, while Rockson Engineering owed it N163.50 billion and Ojemai Farms, N14 billion.

He emphasised that AMCON was determined to recover the debts.

Nwauzor disclosed that only nine Arik Air aircraft were serviceable at the time  AMCON stepped in. (NAN)