The Asset Management Corporation of Nigeria has expressed concern over a growing debt of N4 trillion, describing it as a serious threat to the nation’s financial stability.
Speaking at a briefing in Lagos, AMCON’s Corporate Communications Head, Jude Nwauzor, revealed that the debt comprises non-performing loans transferred from Nigerian banks.
He added that the corporation is determined to recover the funds, particularly from resistant debtors, including Arik Air and over 12,000 other entities.
Nwauzor disclosed that Arik Air, currently under receivership, owes AMCON N227.6 billion. He further stated that other companies linked to Arik’s founder, Sir Johnson Arumemi-Ikhide, are also heavily indebted. These include: Rockson Engineering N163.5 billion, Ojemai Farms N14 billion.
“The total debt from these companies is over N455 billion as of December 31, 2024,” Nwauzor said. “Despite smear campaigns and resistance, these debts must be recovered one way or another.”
Nwauzor warned that if AMCON fails to recover the N4 trillion debt, the Federal Government may have to bear the burden, ultimately using taxpayers’ money to settle the deficit.
He explained, “The public would end up paying for the recklessness of a few individuals who exploit legal loopholes to avoid their obligations. This is unacceptable, and AMCON will utilize every legitimate tool to recover these funds.”
AMCON stated that the option to liquidate Arik Air is still on the table due to the airline’s insolvency. Nwauzor highlighted the challenges in managing Arik Air, which had accumulated debts to trade creditors, technical partners, and aviation experts worldwide.
“Arik was already insolvent before we took over, and it remains insolvent today. Managing these debts has been a tough task, but liquidation is still an option under the AMCON Act,” he said.
The AMCON Act empowers the corporation to manage, purchase, and dispose of eligible bank assets (EBAs), including appointing receivers to manage debtor companies. These provisions allow AMCON to take decisive action, including liquidating non-compliant entities.
Nwauzor called on Nigerians to understand the importance of AMCON’s efforts in recovering these debts, emphasizing that it is crucial for the financial health of the country.
“If these debts are not recovered, it could create long-term consequences for Nigeria’s economy and its taxpayers,” he said.
AMCON continues its efforts to ensure compliance and accountability among debtors while exploring all legal options to recover the massive debt.
