How AMCON’s Take-over of Arik Air Influenced Perception of Nigeria by Global Aviation Community

Failure to meet international obligations after taking over Arik Air, Asset  Management Corporation of Nigeria may have damaged Nigeria’s image in  global aviation community, writes Chinedu Eze

When Asset Management Corporation of Nigeria (AMCON) took over the  management of Arik Air on February 9, 2017 and put it under receivership, the  most promising Nigerian carrier then had some international subsisting credit  facility obligations and aircraft maintenance agreement, which it repudiated.

Some Boeing B737 of Arik Air fleet was financed by Pacific Export Finance  Corporation (PEFCO) of US-Exim Bank and the Airbus A340-500 were financed  by European Credit Agency (ECA) in addition to the aircraft maintenance  agreement the Nigerian airline had with Lufthansa Technik, which deals were  subsisting during the take-over.

After taking over the airline, AMCON suspended relationships with these  international financiers and reputable aircraft maintenance organisation,  which strengthened the allegation that AMCON was more of an undertaker than the claimed intent to safe the airline from huge debts and liquidation.

THISDAY investigations revealed that no airline after Arik Air has had such  robust relationship with international financiers because AMCON may have  inadvertently damaged the reputation of Nigeria, as lessors became more  stringent and international insurers upped their premium, re-emphasising their  designation of Nigeria as high-country risk.

It was at this low ebb that the Minister of Aviation and Aerospace  Development, Festus Keyamo, began to rebuild Nigeria’s image, as inside  source revealed to THISDAY that some of Arik Air’s international partners were  shocked that it was a government agency, which ought to give support to such  private sector investment, that was frustrating the growth of the airline.

They were shocked that immediately AMCON took over the airline it stopped  its “lucrative” Lagos-London Heathrow operations, its New York flight services  and other international flight operations.

Minister Keyamo met with lessors and stakeholders to implement the Cape  Town Convention (CTC) and its protocol in Nigeria, aiming to reassure  international lessors by enforcing swift aircraft recovery, boosting confidence,  increasing aircraft access for local airlines, fostering competition, and  ultimately lowering high airfares, reversing years of lessors avoiding Nigeria  due to legal risks  Reforms Key reforms, like new High Court Practice Directions, guaranteed lessors can  reclaim assets quickly, making Nigeria a safer, more attractive market. 

In September last year, Nigeria became one of the few countries in the world  to pioneer the issuance of Practice Directions by the Federal High Court which  is vested with the constitutional jurisdiction on Aviation matters. The new Practice Directions issued by the Chief Judge of the Federal High Court will

eliminate judicial impediments in the implementation and compliance with the  Cape Town Convention. This was part of the efforts to correct the damage done by AMCON by the forceful taking over of Arik Air and ruining the airline, which had over 30 aircraft fleet but today, has only four in NCAA records. 

When AMCON took over Arik Air in 2017, it stressed that it took over the airline because of debts.   Reports then indicates, “The Asset Management Corporation of Nigeria (AMCON) has justified its takeover of Arik Air, saying that the company has negative capital that runs into billions of naira, while new claims on the precarious financial state continue to come to the fore on a daily basis.

In an affidavit filed at the Federal High Court in Lagos by the Vice President and Team Lead, Transport and Aviation Unit of Arik Air, Mr. Gbolahan Odutayo, on behalf of AMCON and the receiver/manager, Mr. Oluseye Opasanya (SAN), the plaintiff averred that the magnitude of Arik’s financial problem was much worse than anticipated.

“In the suit number FHC/L/CS/175/17, Oduntayo alleged that when the second plaintiff – AMCON took over Arik on February 9, 2017, the insurance policy for Arik’s airplanes was to lapse on February 10, at which date, Arik was owing N418,893,067.97 as arrears of unpaid premium.”

But recent court revelations indicated otherwise. A Union Bank of Nigeria Limited agreement with Arik Air dated 22 April, 2009, confirmed that the bank never gave any loan to Arik Air but guaranteed loan from international financiers.

“We further agree to pay you on demand any further charges and interest, which may arise in the event of any claim being made upon you under the guarantee (indemnity). The USEXIM Guarantee in respect of 3 ALOHA (Boeing 737) aircraft-US $100 million at @N145-US$ etc”.

It has to be noted that the international financiers have at several occasions complained about AMCON interferences in the deal struck between a private investor in Nigeria and the international institution. 

“AMCON weaponized its Act to intimidate ECA (European Credit Agency),” stated one of the insiders who spoke to THISDAY.

Court revelations have also confirmed that it was EFCC that busted the phoney heavy debt allegation in its investigations, revealing that as there was no loan given to Arik Air by Union Bank Nigeria, there was no debt, as alleged. So, why did AMCON take over Arik Air? Planned sale of airline

THISDAY gathered that AMCON never intended to revamp Arik Air at takeover.

There is an allegation that has not been refuted that some elements at AMCON wanted to sell the airline, as they sold 9Mobile, Keystone Bank, Lagos Continental Bank and Suruworldwide Best Western Hotel, most of which have been recovered.

“This was not the decision of AMCON as an agent, but a syndicated arrangement, which at the end of the day failed because airline business is an intricate business. It is an international business, which you cannot just take

over,” offered an insider who disclosed that when the syndicate saw the challenge, “they opted for NG Eagle.” Damage 

But what AMCON did has damaged Nigeria’s aviation industry. THISDAY investigations revealed that after the take-over of Arik Air by AMCON, international financiers have shunned Nigerian airlines. 

“Many airlines have found it increasingly difficult to access credit facility from international financiers. Arik Air which built international goodwill made it easy; but afterwards, it became very difficult because, AMCON, as a government agency, changed the perception of international financial institution about aviation in Nigeria. Even the court confirmed that the Receiver Manager defaulted in the repayment for Afrexim Bank that financed Boeing 737-800 aircraft for Arik Air. He also defaulted in repayment of Gem Leasing and Export Development Bank of Canada for the financing of two Bombardier CRJ 1000 and the four Bombardier Q400,” an insider disclosed to THISDAY.

THISDAY visited the Arik Air maintenance hangar at its head office located at the Murtala Muhammed Airport, Lagos recently and discovered that out of over 10 aircraft parked at the facility, including Bombardier Q400, CRJ 900 and Boeing 737, none had its engines on the wings. All the engines were removed.

So, what remains are the carcass of what used to be airworthy aircraft. Some of them did not have their console and heavy load was put in some of them so that the wind would not carry them away. Current Status

In response to request made on September 16, 2025, the Nigeria Civil Aviation Authority (NCAA) issued the status of Arik Air aircraft with date, October 24, 2025, listed the total number of aircraft under the Arik Air service. 

The NCAA report, which was signed by the Director, Legal Services and Company Secretary, indicated that as at November 1, 2016 to January 31, 2017, Arik Air had 23 aircraft in its fleet, without the ones ferried overseas for maintenance but as at May 10, 2025 to July 31, 2015, Arik Air under AMCON Receivership, had the following: 1. Boeing B737-700 GL with registration mark: 5N-MJF; 2. Boeing 737-800JE with registration mark: 5NMJQ; 3. Bombardier DHC (Dash 8), Q400 with registration mark, 5N BKW and DHC (Dash 8) with registration mark, 5N-BKX.

So, from the 23 aircraft in its inventory in 2017, when AMCON took over the running of the airline under receivership, what is available in NCAA records are four aircraft in the airline’s current fleet. 

Many stakeholders have commended the federal government for the support it has given Nigerian carriers, enabling them to access dry lease after many years lessors shunned them due to the damage AMCON has done to the international reputation of Nigeria’s aviation industry.