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- Since Arik Air fell into fiscal woes successful 2017 and was taken implicit by the government, it has been a lawsuit of going from atrocious to worse
- The implicit N300 cardinal indebtedness astatine the clip is present person to fractional a trillion naira, and the hose is inactive incapable to conscionable outgo obligations to the galore debtors
- Details person present emerged astir the prolonged indebtedness situation, and a imaginable N79 cardinal fraud lawsuit that whitethorn person happened successful the interim
Legit.ng writer Ruth Okwumbu-Imafidon has implicit a decennary of acquisition successful business reporting crossed integer and mainstream media.
A notable Nigerian airline, Arik Air, whitethorn soon look liquidation owed to its mounting debt.
The Asset Management Corporation of Nigeria (AMCON) confirms that Arik Air has been uncooperative successful repaying its debts, which tally adjacent to fractional a trillion naira.
Legit.ng listed the debts to see N227,637,469,394.34 (N227.6 billion) owed to AMCON, N163,502,837,397.75 (N163.5 billion) owed to Rockson Engineering, and N14,031,457,980.71 (N14 billion) owed to Ojemai Farms.
Source: UGC
A erstwhile Executive Director astatine AMCON, Abbas Jega, provided details of the substance portion testifying astatine the Special Offences Court successful Ikeja, Lagos, presided implicit by Justice Mojisola Dada connected Wednesday, 4 June 2025.
AMCON Director gives penetration into Arik’s indebtedness
The national government took implicit Arik Air successful February 2017 owed to its monolithic indebtedness profile, exceeding N300 billion.
The absorption squad was dissolved, and the authorities appointed a receiver manager done AMCON. There was besides a directive from the Central Bank of Nigeria (CBN) for banks to transportation non-performing loans to AMCON.
In his testimony, Jega explained that this determination was justified due to the fact that the magnitude progressive had caused 1 of the creditors, Union Bank, to transcend the azygous obligor bounds acceptable by the apex bank.
AMCON would aboriginal observe that the slope had converted Arik’s warrant into a indebtedness and pushed it to the corp to repay.
The Cable reports that Jega was giving his grounds arsenic the 3rd prosecution witnesser successful the ongoing proceedings erstwhile helium said:
“It was a warrant fixed to immoderate overseas lenders that successful the lawsuit Arik died oregon burned out, Union Bank volition wage the installments. When we came backmost to Nigeria, we invited the Union Bank to explicate wherefore AMCON should wage for the guarantee.“At the extremity of the deliberations, AMCON agreed with Union Bank that the wealth paid should beryllium returned to AMCON, truthful that if Arik does not wage immoderate installment, AMCON volition marque the outgo connected behalf of Arik. We (AMCON) invited Arik to resoluteness the contented with Union Bank.”Arik Air restructures indebtedness payments with AMCON
Despite archetypal aversion to discussing the indebtedness concern with AMCON, Arik Chairman Johnson Arumemi-Ikhide yet signed agreements to restructure the loans, with AMCON providing the hose further moving capital.
This accrued Arik’s indebtedness to AMCON, and the hose inactive defaulted connected indebtedness obligations, Jega explained.
He said;
“Since AMCON took implicit Arik, it stopped performing due to the fact that the quality of the installation had changed, and Arik was not amenable to that change. It was incapable to root its moving superior from the wealth market. This analyzable some the narration betwixt Arik/AMCON and the quality of Arik to honour its obligations.”He disclosed that they explored respective options, including a debt-equity swap wherever AMCON would go a shareholder successful the hose and the owners would springiness up immoderate equity, but Arik Air declined.
Another enactment was to springiness AMCON absorption power and fiscal oversight by letting them name the MD and CFO, but implementation dragged connected till Jega near AMCON successful 2015.
Arik Air faces liquidation amid N79 cardinal fraud case
The Economic and Financial Crimes Commission (EFCC) initiated the ongoing lawsuit connected January 20, arraigning Kamilu Omokide, receiver manager of Arik Air, (first defendant); Ahmed Kuru, erstwhile managing manager of AMCON (second defendant), Roy Ilegbodu, managing manager of Arik Air, (third defendant); Union Bank Plc (fourth defendant) and Super Bravo Limited (fifth defendant).
The defendants were accused of defrauding Arik Air (still successful receivership) of N76 cardinal and $31.5 million.
During the cross-examination, Jega said Ilegbodu and Omokide were not portion of the indebtedness transfer arrangements oregon the London gathering with Arik’s overseas lenders.
Source: UGC
He confirmed that astatine the clip of his exit from AMCON successful 2015, Arik Air had incurred implicit N100 cardinal indebtedness to the corporation, successful summation to existing loans from Union Bank, Keystone Bank, and Zenith Bank (which was aboriginal purchased to summation the indebtedness to AMCON).
Jega besides said that the hose was incapable to wage the immense debts owed to overstretched capacity.
The substance has been adjourned to June 30, July 1, and July 2, 2025, for the continuation of Jega’s cross-examination.
Arik Air continues to bask precocious rider traffic
Amid each of the drama, Arik Air inactive ranked among the airlines with the highest fig of passengers successful Nigeria.
Legit.ng reported that Arik Air emerged arsenic the second-largest carrier successful 2024, carrying 2,239,197 passengers wrong 12 months.
A study by the Nigerian Civil Aviation Authority (NCAA) shows that Air Peace emerged arsenic the Nigerian hose with the highest home rider postulation successful 2024, portion Qatar Airways led connected the planetary route.
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Source: Legit.ng
