The two big names in Nigeria, Sir Arumemi-Ikhide owners of Arik Air before AMCON receivership and Senator Jimoh Ibrahim, are both house hold names, also were two prominent business mogul of international repute and exposure for many decades not until the turn of events.
The two business conglomerates with the former was bias in the aviation industry, and the later in multiple multinational businesses from Insurance, to Hospitality, Aviation and Publishing company had had asymmetrical exposures to the financial institutions in Nigeria.
The financial transaction gone bad running into billions led to the intervention of the Asset Management Corporation of Nigeria AMCON who took over the toxic and bad debts of Banks in Nigeria through an enabling act since 2015.
Ikhide of defunct Arik was the sole owner of the moribund Arik before the sudden taken over of Asset Management Corporation of Nigeria AMCON due to exposures of the airline to Banks across the country to the tune of over 200B.
Before the intervention of AMCON, the airline and it’s operators had exposed Nigerians to various air dangers and mishaps which was concealed over the inability to manage the large and most prominent airline company some decades ago.
For Senator Jimoh Ibrahim, the new brand senator representing Ondo South who had proposed to offset Nigerian debt in a matter of days, but unable to settle many years exposures to AMCON, which led to the seizure of his large investment of NICON Insurance and NICON Luxury Hotel to the tune of over 60B exposure to Banks already taken over by AMCON.
The two controversial wealthy men had contributed negatively to the over 4 Trillion debt owed the government by local business men of Arumemi-Ikhide and Senator Jimoh Ibrahim.
The recent judgement against Senator Jimoh Ibrahim was a pointer to the legitimacy of his exposure and that of his conglomerates to AMCON.
Untiring on the recent development, the new government ‘pickin’ and political gladiator from Ondo state turned the decision of the court as usual ,and rather profer solutions to Nigerian problems and how to offset the national calamity he was part of.
As at this point, except politics, all the business interest of Senator Jimoh Ibrahim had collapsed, yet want to act as Nigeria’s messiah. This is ironic.
Now, the chief debt settler and debtor in local parlance is now a member of the red chamber, but the stigma of AMCON exposure is still prevalent among many others public officers, we urged the current 10th Assembly to be wary of both direct and subtle intimidation of Head of MDA’s who are carrying out their statutory functions before the current dispensation.
We are all aware, that President Bola Ahmed Tinubu is more determined and in a hurry to transform the economy of Nigeria not minding individual, collective and extraction interests.
For ikhide, too bad a case, doing airline business without sincerity and strict adherence to code of conducts and ethics was dangerous to the business.
For children growing up, Arik Air was highly favoured airline during Arumemi-Ikhide days, though on receivership, AMCON rejuvenated the old spirit, but the bad leadership and management under the sole owner still reflect the current dispensation.
Before the current status of Arik Air and upon commencement of receivership, the airline situation went from bad to worse.
An airline who had not the least requirements of weekly cash flow to effect logistics was nothing but moribund.
The window dressing and vainglorious position of Arik that boasted of 30 Aircrafts long time immemorial was misplaced as just eight of the aircrafts were serviceable and airworthy.
The heavy indebtedness to both local and international partners was critical to the survival of Arik before AMCON receivership, let’s get it clearly.
With unserviceable aircrafts and refusal to oblige all afrronts from the technical partners, salaries and allowances of all critical stakeholders in the organization were not paid for many years including pilots and crew members since July 2016 and August, 2016.
Health insurance, welfare arrangements that was robust and pension contributions that was the rights and not privileges of staffers were deliberately denied.
The airline then became the headquarters of flight cancellation with crew members denied their statutory hotel accommodation, rents among others was not paid.
Insurance premium on the aircrafts was in bad shape, no aircrafts maintainance, all leases were not obligated, all mini operators between the system are not honored and owed millions.
Even at then , some aircrafts located across different locations outside Lagos had some numbers vandalised , with the internet connectivity of the organization that was non -functional before AMCON.
Audit reports for the airline was negative + and as at December 2016 pre receivership arrangements, the shareholders fund of 139B, the main sustainer of any conglomerate was completely wiped out.
The airline was already at the point of liquidation that was the saving grace of the continuous existence of Arik Air salvaged by AMCON through offsetting of all exposures.
Even at that, discussions and consultations continued on the need to introduce an investor and group of investors that turned in with imaginary proposals, on the way forward to salvage post receivership Arik Air.
To salvage already self liquidation airline with AMCON receivership, took over all the toxics with concrete proposal on the way forward, that will not affect the operations of the airline.
With pressure from the owners and shareholders, AMCON had an extensive discussions and reviewed the over 200B exposure downward to 100B on the condition that it will be obliged among other conditions.
With renewed commitment and agreement brokered through Arik Air proposal in May, 2022 with 80% discount from 91B down to 18B among other requirements which included zero interest rates.
Other bogus requirements included removal from CBN debtors, and capital acquisition to rebuild the airline with BOI single interest digit and rate, concession to foreign exchange directly from CBN.
Among the unrealistic requests of the debtor Arik management included open discussion with it’s numerous debtors , as a prelude to addressing the ongoing litigations.
With all these tall requirements from the Arik Air shareholders, AMCON continue to open more avenue for fruitful discussion and engagements not only to salvage the airline, but return it to business.
AMCON restated it’s position on the state of equipment during receivership and post receivership with the consent of the auditors of the previous management.
It is also interested in returning to business of Arik Air, but the twist of the sole owner via the shareholders became another chapter to the amicable solutions.
Having adopted a propaganda stance to paint AMCON dark and black to the sympathy of Nigerians, the need to put the record straight became sacrosanct.
The position of AMCON is ever willing to accept laudable proposals from debtor Nigerians and not only Arik or Jimoh Ibrahim, geared towards offsetting the over 4 Trillion debt.
The recent position by Arumemi-Ikhide and Jimoh Ibrahim is not the position of AMCON, as without prejudice to the case in court, any other arrangements that will recover public funds in the hands of Nigerians which included the two duos will be a way to go by AMCON.
Yusuf is A Public Affairs Analyst, writes from Kaduna.
