Arik Air shareholders have strongly refuted claims by the Asset Management Corporation of Nigeria (AMCON) that the airline owes ₦455 billion. In a statement issued on Sunday by Godwin Aideloje, representing the shareholders, the debt claim was labeled “fictitious.”
AMCON had placed Arik Air under receivership in 2017 through Suit No. FHC/L/CS/175/17, gaining full control over the airline’s operations, assets, and liabilities. Recently, AMCON stated that the option of liquidating Arik Air remains open after multiple attempts to revive the “heavily indebted” airline.
Jude Nwauzor, Head of AMCON’s Corporate Communications, reiterated that AMCON operates under Sections 6 and 48 of its enabling Act, granting it authority to seize and manage debtor assets. According to Nwauzor, Arik Air was insolvent before receivership, with no funds remaining and significant debts owed to global technical partners, aviation professionals, and trade creditors.
In response, Aideloje argued that AMCON’s insolvency claims are baseless. He pointed out that before AMCON’s takeover in February 2017, Arik Air’s management had completed its 2014 audited financial reports and submitted its 2015 management accounts to PricewaterhouseCoopers (PwC) for auditing.
Aideloje accused AMCON of disrupting this process and failing to comply with a Federal High Court order from March 31, 2023, which mandated the submission of audited financial reports for the receivership period to the Corporate Affairs Commission (CAC) within 14 days.
Mismanagement Allegations
The shareholders also criticized AMCON’s handling of Arik Air under receivership, describing it as a “poorly crafted attempt” to justify the airline’s struggles. Aideloje further claimed that AMCON’s actions misrepresent the Nigerian government, framing it as arbitrarily acquiring private companies under the guise of state power.
Broader Implications
This ongoing dispute highlights critical issues in Nigeria’s aviation sector and raises questions about the management of companies under AMCON’s control. While AMCON maintains that its actions are lawful and necessary, Arik Air’s shareholders insist that the agency’s approach has been detrimental to both the airline and the Nigerian government’s credibility.
The situation remains unresolved, with both parties entrenched in their positions and the possibility of liquidation looming over Arik Air’s future.
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