Arik Air Shareholders Accuse Government Agency of Mismanagement and Misinformation

The shareholders of Arik Air, Nigeria’s largest airline, have levied serious allegations against the state-owned Asset Management Corporation of Nigeria (AMCON) and its managing director, Ahmed Kuru. In a statement issued on September 20, 2021, the shareholders raised concerns about alleged mismanagement, misinformation, and breaches of protocols surrounding AMCON’s receivership of the airline.

The primary point of contention centers on the debt owed by Arik Air to AMCON. Ahmed Kuru had claimed that the airline owed NGN240 billion (USD312.5 million) to the agency and that AMCON had taken over Arik Air in 2017 to prevent a major catastrophe. However, the shareholders dispute the debt amount and have demanded evidence to substantiate this claim.

Furthermore, the shareholders allege that under AMCON’s control, Arik Air suffered significant losses in assets, staff, routes, and market share. They contend that when AMCON assumed control, Arik Air had 17 operational aircraft and two undergoing minor maintenance, but now the airline operates only three aircraft. Additionally, they claim that the airline’s spare parts inventory, once valued at over USD150 million, has been substantially depleted to less than USD15 million.

The shareholders have expressed their willingness to engage in dialogue with AMCON and relevant authorities to address these issues and restore Arik Air to its former standing. They have also accused AMCON of impropriety and breaches of legal and fiduciary duties in establishing NG Eagle (Lagos), a new airline reportedly utilizing some of Arik Air’s assets.

Arik Air is a prominent airline in West Africa, offering a range of domestic, regional, and international flights. In July 2022, the airline filed for Chapter 11 bankruptcy protection in the United States as part of its efforts to restructure its debt obligations, reconfigure its aircraft fleet, and secure a substantial capital injection. Despite this filing, the airline’s operations and flight schedule remained unaffected.

Sources: AirGuide Business airguide.info, msn.com, ripplesnigeria.com, ch-aviation.com