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Tag: AMCON

  • Court strikes out AMCON’s appeal in N24b.6 debt case

    Court strikes out AMCON’s appeal in N24b.6 debt case

    Supreme Court has struck out an appeal by Asset Management Corporation of Nigeria (AMCON) against Suru Worldwide Ventures Nigeria Limited and its Managing Director, Mr. Edward Akinlade, over a disputed debt claim of N24.6 billion.

    The court ruled the appeal: SC/CV/865/2021, was incompetent, and therefore struck it out.

    The ruling was delivered by Justice Uwani Abba-Aji, with Justices Ibrahim Musa Saulawa, Emmanuel Akomaye Agim, Chidiebere Nwaoma Uwa, and Abubakar Sadiq Umar, concurring.

    “This notice of appeal, having been withdrawn for being incompetent, is struck out,” Justice Abba-Aji declared.

    The legal tussle arose from a dispute between Suru Worldwide Ventures and Oceanic Bank Plc (Ecobank Plc), over what Suru alleged to be gross mismanagement of its account.

    In 2011, Suru initiated Suit FHC/L/CS/450/2011 at Federal High Court against Ecobank and Central Bank of Nigeria (CBN), citing inconsistent and unexplainable debt restructuring and alleged “creative accounting.”

    Suru contended that its account, which was in credit, was manipulated, and that the alleged debt initially restructured to N8.3 billion in 2012  inexplicably ballooned to over N24.6 billion by 2013, despite no new facility being granted.

    CBN was later struck out as a party in the suit.

    AMCON entered the fray in 2016, claiming to have purchased the disputed debt from Ecobank and was joined as a co-defendant.

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    Just two days after being joined, AMCON filed a counterclaim seeking to recover the N24.2 billion from Suru and Akinlade.

    However, the Federal High Court and Court of Appeal ruled against AMCON.

    The trial court found the counterclaim to be an abuse of court process, citing multiple suits by AMCON on the same subject matter and failure to obtain declaratory reliefs in an earlier case effectively extinguishing AMCON’s right to sue on the matter.

    AMCON appealed to the Supreme Court in July 2021.

    But on Monday, its notice of appeal was deemed incompetent and withdrawn, leading to the dismissal.

    Dr. Joseph Nwobike (SAN), Kunle Gbolahan and Samuel Onah represented AMCON.

    Layi Babatunde (SAN) and David Owoeye appeared for Suru Ventures and Akinlade.

    There was no legal representation for Ecobank.

    The ruling not only affirms decisions of the lower courts but also brings a reprieve for Suru, which argued AMCON’s serial litigation on same debt amounted to harassment and abuse of judicial process.

    This ruling effectively ends the legal challenge by AMCON in this matter at the Supreme Court level, unless any extraordinary relief is sought in the future.

    The decision brings a legal close to the protracted dispute between the federal asset recovery agency and Suru Worldwide Ventures, a private company involved in real estate and hospitality.

    Before the judgment, Suru had issued a pre-action notice to AMCON, demanding over N23 billion in special damages for what it described as the wrongful occupation and destruction of its property, specifically the Best Western Hotel at No. 12 Allen Avenue, Ikeja, Lagos.

    According to the notice, the hotel was forcefully taken over on September 22, 2017, in a predawn operation allegedly carried out by AMCON operatives and armed security agents without prior notice, damaging the property and traumatising guests and staff.

    Suru Worldwide contended that the takeover was based on a Federal High Court order that was later set aside by the Court of Appeal, and that AMCON’s counterclaims against the company had been dismissed at both the trial and appellate levels.

    The company sought an order nullifying any transactions AMCON may have entered into concerning the disputed property, and an injunction restraining further interference, and N23,087,390,000 in special damages for financial losses, brand damage, and destruction of assets.

  • UBA rejects N100b sale of IBEDC by AMCON

    UBA rejects N100b sale of IBEDC by AMCON

    United Bank for Africa Plc (UBA) has rejected the reported sale of the 60 per cent stake in the Ibadan Electricity Distribution Company (IBEDC) for N100 billion by the Asset Management Corporation of Nigeria (AMCON).

    It described the transaction as unlawful and opaque, saying it was carried out without its consent or due process.

    AMCON’s Managing Director/CEO, Gbenga Alade, confirmed the sale last Thursday in a press conference and criticised debtors for “sabotaging the economy”.

    However, UBA, through one of its recovery officers/counsel, contended that the transaction is sub-judice, as the matter is currently before Justice Akintayo Aluko of the Federal High Court in Lagos.

    UBA is the plaintiff in the ongoing suit, with AMCON, Polaris Bank, and Archlight Nigeria Limited, the entity to which it was purportedly sold, as the first, second, and third defendants, respectively.

    The bank said all parties were represented in court on July 3, including Dr. Chika Agbu (SAN) and Babatunde Ogala (SAN).

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    The matter was adjourned to October 2, 2025, for the hearing of all pending applications.

    UBA questioned the AMCON principal’s comments on the purported sale, the subject matter of which was under judicial consideration.

    The bank’s position is that the press conference was contemptuous, and it would take legal steps in that regard.

    The bank insisted the purported divestment violates the terms of the Facility Agreement and is liable to be set aside by the court.

    UBA is seeking interlocutory injunctions to restrain AMCON, Polaris Bank, Archlight Nigeria Limited, and their agents from disbursing funds or taking any steps regarding the divestment of Integrated Energy Distribution and Marketing Limited’s (IEDM) 60 per cent shareholding in IBEDC, pending the determination of the substantive suit.

    According to an affidavit deposed to by UBA’s representative, Afamefuna Ogbonna, IEDM had secured a $162.4 million syndicated loan from several banks, with UBA contributing $35 million (21.5 per cent of the total), to acquire the 60 per cent stake in IBEDC following the 2013 PHCN privatisation. Polaris Bank (then Skye Bank) was appointed Facility Agent.

    Following IEDM’s default, AMCON purportedly assumed control of IEDM’s interest in IBEDC and appointed a Receiver/Manager in August 2021.

    UBA alleged that AMCON unilaterally took over the role of Facility Agent and proceeded with a divestment plan without consulting or obtaining consent from the lenders.

    The bank said it found that AMCON initiated a bid process in 2022 and later selected Archlight Nigeria Limited as the preferred bidder, despite the latter’s failure to submit a bank guarantee.

    The bank claims the transaction lacks transparency, noting that no valuation report or share purchase agreement was shared with it or other lenders.

    In a pre-action notice dated April 28, 2025, UBA expressed its concerns to AMCON, which were discountenanced in a response dated May 16, 2025.

    UBA maintained that AMCON’s decision to sell the IBEDC stake for N100 billion, an amount said to be below 20 per cent of its true value of over N1 trillion, is arbitrary and grossly prejudicial.

    The bank emphasised that it is a custodian of depositors’ and shareholders’ funds and that the N70 billion exposure due to IEDM’s default continues to accrue interest, worsening its financial position.

    UBA is urging the court to set aside the sale, asserting that the process breached contractual obligations, violated transparency standards, and failed to secure the collective approval of the lenders.

  • AMCON ex-director denies signing Arik Air loan deal

    AMCON ex-director denies signing Arik Air loan deal

    A former Executive Director of the Asset Management Corporation of Nigeria (AMCON), Abbas Jega, yesterday told an Ikeja Special Offences Court that he was not among the signatories to the Loan Purchase Agreement between Union Bank of Nigeria and Arik Air.

    Jega, the third prosecution witness, stated this while testifying before Justice Mojisola Dada in the ongoing trial of Mallam Ahmed Kuru, a former Managing Director of AMCON, and four others over an alleged N76 billion and $31.5 million fraud.

    Kuru, alongside Capt. Roy Ilegbodu, Managing Director of Arik Air; Kamilu Omokide, Receiver Manager of Arik Air; Union Bank of Nigeria Plc; and Super Bravo Limited, are standing trial on a six-count charge bordering on conspiracy, stealing, and abuse of office involving N75 billion and $31.5 million.

    Jega, under cross-examination by Olalekan Ojo (SAN), counsel to the fourth defendant, questioned the authenticity of the signatures on the agreement.

    He noted that the two individuals said to have signed the document were professionals of the highest standard.

    “Therefore, I disagree that they signed the agreement the way it is shown to me,” he said.

    Jega also pointed out irregularities in the pagination, noting that the document began on page 8.

    “I doubt if my colleagues could have signed this agreement,” he added.

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    Ojo, at this stage, cautioned the witness and urged him to confirm that each page of the agreement was duly certified by AMCON.

    Jega told the court that his extra-judicial statement dated June 19, 2023, was based on questions posed by operatives of the Economic and Financial Crimes Commission (EFCC) and his knowledge of the matter.

    Regarding a meeting held in London on February 4, 2011, with foreign lenders, Jega explained that it was convened at the instance of Union Bank, and AMCON was merely invited.

    Asked if  the purpose of the London meeting was to inform foreign lenders that AMCON had taken over the guarantee of Arik Air’s loan by the defence, Jega responded that Union Bank representatives did not disclose that information at the meeting.

    Ojo asked again if AMCON representatives disclosed at the meeting that they had taken over the loan. Jega replied: “We did not.”

    Questioned on whether he ever returned to the EFCC to make an additional statement, he said: “My Lord, there was no need to do that in respect of the Arik Air loan.”

    The witness insisted that what was purchased by AMCON was the guarantee and the indemnity.

    On the loan agreement with Union Bank, Jega confirmed that AMCON acquired loans from Union Bank, valued at approximately N239.534 billion.

    He also affirmed that AMCON and Union Bank had exchanged official correspondence regarding the loan transaction, but noted that Arik Air was not a party to the loan purchase agreement.

    When shown Exhibit P11 by Ojo, the witness told the court that the loan agreements were duly executed and each page of the agreement was satisfied by AMCON.

    The London meeting held on February 1, 2011, according to Jega, was convened by Union Bank to address foreign lenders.

    He said he was not appointed secretary and hence did not take the minutes.

    He also could not confirm whether AMCON’s takeover of the loans was formally announced during the meeting.

    Asked whether AMCON sent any letters disputing the loans with Union Bank, Jega replied in the negative and added that EFCC operatives never showed him any such document during their interactions.

    Jega referenced Exhibit P12, which indicated Arik began borrowing from Union Bank in 2007 and defaulted by 2009.

    He said that Union Bank used its funds to service foreign loans when Arik defaulted.

    However, he said there was no documentation presented at the London meeting to indicate the loans were performing at the time.

    The witness admitted that not all aspects of the transaction were covered in his EFCC statement, noting that his responses were limited to the questions asked.

    Jega said two relationship managers, whom he mentioned in his testimony, were also present at the London meeting.

    Justice Dada adjourned the case to October 15 and 17, 2025, for continuation of the trial.

  • AMCON ex-director exposes flaws in Arik loan deal

    AMCON ex-director exposes flaws in Arik loan deal

    The Lagos State High Court yesterday heard that the controversial multi-billion-naira debt attributed to Arik Air was not a traditional loan as previously claimed.

    The fresh revelation was made in Federal Republic of Nigeria vs Kamilu Alaba Omokide & others: Charge No. ID/24942C/2024.

    A former Executive Director at AMCON, Mr. Abbas Mohammed Jega, told the court during cross-examination that the controversial multi-billion-naira debt attributed to Arik Air was a guarantee facility misrepresented by Union Bank during AMCON’s debt acquisition in 2010.

    Jega, who served as AMCON’s Executive Director in charge of Credit, said the truth came to light during a February 2011 meeting in London with HSBC and Export Credit Agencies (ECAs), where Union Bank disclosed that the facility was a guarantee—contrary to what AMCON had believed at the point of purchase.

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    According to him, Union Bank eventually refunded AMCON the purchase price for the Arik facility.

    He said it was an unusual move that would not have happened if the loans were genuinely non-performing.

    Despite this, the guarantees later crystallised into bad debts, pushing AMCON to restructure the liabilities and seek support from the Central Bank of Nigeria (CBN) and the Bank of Industry (BOI).

    By July 2011, AMCON was still holding both the Union Bank refunds and funds earmarked to settle future repayments. “We were holding the cash,” Jega said.

    The case involves Kamilu Alaba Omokide, Ahmed Lawal Kuru, Captain Roy Ilegbodu, and two others.

    Jega clarified that neither the first nor the third defendants played any role in the original transaction, as they were not yet part of AMCON at the time.

    AMCON bought Arik’s debt, thinking it was a loan; it turned out to be a performing guarantee.

    Union Bank refunded AMCON after the truth emerged, and no evidence implicates the first and third defendants in the original transaction.

    Lead counsel Prof. Taiwo Osipitan (SAN) and Olasupo Sasore (SAN) cross-examined the witness, who also confirmed he declined a post-AMCON consultancy offer from Arik Air’s chairman, after being asked to help negotiate the airline’s exit from receivership.

    The trial continues today with further cross-examination of the witness.

  • Fed Govt. challenges new AMCON Board on asset recovery, others

    Fed Govt. challenges new AMCON Board on asset recovery, others

    The Federal Government has issued a directive to the Asset Management Corporation of Nigeria (AMCON) to ramp up efforts in recovering distressed assets, strengthen corporate governance practices, and develop a clear and time-bound exit strategy consistent with international standards.

    This mandate was delivered by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the formal inauguration of the newly constituted Board of Directors of AMCON held in Abuja on Wednesday.

    Speaking at the inauguration, Edun stressed the need for AMCON to undergo a strategic transformation from being a stabilising force during economic crises to becoming a more structured and efficient institution focused on value realisation and eventual wind-down.

    He said the new direction is essential for enhancing investor confidence and unlocking value trapped in non-performing assets, as well as aligning with the government’s broader macroeconomic reform agenda aimed at stimulating private sector-led growth.

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    “AMCON must evolve from a stabiliser of last resort to a disciplined vehicle for value creation and responsible exit,” the minister said.

    He added that developing and executing a credible exit strategy would not only free up vital public and private sector resources but also contribute to the government’s objective of fostering a more transparent and investment-friendly financial system.

    Edun further noted that amid current fiscal constraints, the efficient recovery of assets and robust institutional governance are indispensable tools for maintaining Nigeria’s attractiveness as a destination for global capital and business.

    Responding on behalf of the Board, AMCON Managing Director/CEO, Gbenga Alade, assured the minister and stakeholders of the Board’s full dedication to the Corporation’s renewed mission.

    He acknowledged that AMCON was established as a temporary intervention and pledged that the organisation would remain committed to winding down its operations in a structured and responsible manner.

    “We are here to conclude, not to continue indefinitely,” Alade stated. “We will benchmark our exit plan against global models and deliver a process that serves the national interest.”

    The new AMCON Board brings together professionals from across Nigeria’s six geopolitical zones, combining public and private sector experience to steer the Corporation toward the completion of its mandate.

    The board members include: Dr. Bala Bello – Chairman; Yusuf Tegina – Non-Executive Director (North Central); Adeyemo Adeoye – Non-Executive Director (South West); Charles Odion Iyiore – Non-Executive Director (South South); Yahaya Ibrahim – Non-Executive Director (North West); Emily Chidinma Osuji – Non-Executive Director (South East); Gbenga Alade – Managing Director/CEO, AMCON; Adeshola Lamidi – Executive Director, AMCON; Lucky Adaghe – Executive Director, AMCON and Aminu Mukthar Dan’Amu – Executive Director, AMCON.

  • FG tasks new AMCON Board on asset recovery, corporate governance, exit strategy

    FG tasks new AMCON Board on asset recovery, corporate governance, exit strategy

    The Federal Government has directed the Asset Management Corporation of Nigeria (AMCON) to ramp up efforts in recovering distressed assets, strengthen corporate governance practices, and develop a clear and time-bound exit strategy consistent with international standards.

    This mandate was delivered by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the formal inauguration of the newly constituted Board of Directors of AMCON held in Abuja on Wednesday. 

    The event signals a significant milestone in AMCON’s mandate to restore stability to Nigeria’s financial sector, accelerate asset recovery efforts, and chart a roadmap for its eventual dissolution.

    Speaking at the inauguration, Edun stressed the need for AMCON to undergo a strategic transformation from being a stabilising force during economic crises to becoming a more structured and efficient institution focused on value realisation and eventual wind-down. 

    He said the new direction is essential for enhancing investor confidence and unlocking value trapped in non-performing assets, as well as aligning with the government’s broader macroeconomic reform agenda aimed at stimulating private sector-led growth.

    “AMCON must evolve from a stabiliser of last resort to a disciplined vehicle for value creation and responsible exit,” the Minister said.

    He added that developing and executing a credible exit strategy would not only free up vital public and private sector resources but also contribute to the government’s objective of fostering a more transparent and investment-friendly financial system.

    Read Also: AMCON urges partners to recover N4tr from 12,000 debtors

    Edun further noted that amid current fiscal constraints, the efficient recovery of assets and robust institutional governance are indispensable tools for maintaining Nigeria’s attractiveness as a destination for global capital and business.

    Responding on behalf of the Board, AMCON Managing Director/CEO, Mr. Gbenga Alade, assured the minister and stakeholders of the Board’s full dedication to the Corporation’s renewed mission. 

    He acknowledged that AMCON was established as a temporary intervention and pledged that the organisation would remain committed to winding down its operations in a structured and responsible manner.

    The board members include: Dr. Bala Bello – Chairman; Yusuf Tegina – Non-Executive Director (North Central); Adeyemo Adeoye – Non-Executive Director (South West); Charles Odion Iyiore – Non-Executive Director (South South); Yahaya Ibrahim – Non-Executive Director (North West); Emily Chidinma Osuji – Non-Executive Director (South East); Gbenga Alade – Managing Director/CEO, AMCON; Adeshola Lamidi – Executive Director, AMCON; Lucky Adaghe – Executive Director, AMCON and Aminu Mukthar Dan’Amu – Executive Director, AMCON.

  • AMCON urges partners to recover N4tr from 12,000 debtors

    AMCON urges partners to recover N4tr from 12,000 debtors

    The Asset Management Corporation of Nigeria (AMCON) says it will work with Asset Management Partners (AMPs) to recover over N4 trillion debt owed by nearly 12,000 obligors.

    Speaking during inaugural interactive session with AMPs in Abuja at the weekend, AMCON Executive Director, Resolution, Adeshola Lamidi, said the new dawn in AMCON includes proactive and practical applications to debt recovery.

    According to AMCON policy guidelines, the AMPs are among other things, work with AMCON in tracing, identifying, and locating obligors with the intent to resolve their outstanding indebtedness.

    They would also be involved in the identification and location of assets of obligors (both pledged and unpledged) to enhance the Eligible Bank Assets (EBAs) value and achieve set recovery objectives, negotiation of settlement and restructuring terms with identified obligors in line with approved guidelines.

    The AMPs will be vested with the wide powers granted to AMCON by its enabling Act. It would be recalled that almost nine years ago, AMCON called for applications from reputable and qualified entities with the requisite experience to collaborate with it as AMPs to resolve these debts.

    Lamidi said the Corporation has decided to take its relationship with the appointed AMPs to the next level, which he also assured would be mutually beneficial to both the AMPs and AMCON.

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    Reassuring the AMPs of the decision of the AMCON management to continue the partnership programme, Lamidi said sessions such as this, would provide a timely and strategic opportunity for us to reflect on our journey so far, re-evaluate our recovery strategies and pave the way forward for better effectiveness, and efficiency in conducting this national assignment.

    “In achieving greater success, we must deepen collaboration, uphold ethical standards, and embrace strategic thinking in our recovery efforts. This session is therefore designed not only to strengthen engagement with our partners but also to jointly explore practical solutions, share feedback, and forge better ways forward,” Lamidi concluded.

    Managing Director, AMCON, Gbenga Alade, underscored the importance of the AMP scheme when he urged the AMPs to take the AMCON debt recovery assignment seriously.  He said, “You must not underrate your importance to the Corporation. You are indeed very critical to our success, as our workforce of less than 500 personnel with offices in Lagos and Abuja may not effectively cope with the over 12,000.00 portfolios in our inventory. Accordingly, the imperative of deepening our mutual synergy is readily apparent.

    “With an inevitable Sunset date and recalcitrant debtors, a high premium is placed on debt recovery efforts to ensure that the Corporation achieves its statutory mandate. In other words, with a looming Sunset date, it is necessary that you are more aggressive in your debt recovery drive. We are not oblivious to the herculean challenges confronting you in your debt recovery strides.  Certainly, debt recovery has never been easy. However, most of you have surmounted these hurdles with excellent performance to your credit.

    “Your consistent feedback from previous sessions and at other fora formed the fulcrum of the Federal High Court (Asset Management Corporation of Nigeria) Proceedings Rules, 2024, and the establishment of the Insolvency Unit of the Federal High Court on Monday, March 24, 2025. In the Notice establishing the Insolvency Unit at the Federal High Court, My Lord the Hon. Chief Judge of the Federal High Court explained that it was created pursuant to the ‘relevant insolvency provisions of the AMCON Act, 2010 (as amended)’ and the Companies and Allied Matters Act (CAMA), 2020.’”

    The AMCON CEO further explained that “Amongst others, the functions of the Unit include the effective implementation of the provisions of the insolvency laws relating to Company Voluntary Arrangements, Administration, Receivership, Winding-Up and various forms of re-structuring. Notably, this Unit was established in accordance with global best practices on insolvency. It will also offer specialized and standardized services on insolvency. Furthermore, the Unit will serve as a dedicated channel for supervisory and enforcement infrastructure on insolvency issues. For AMCON, this Unit will offer the Fast Track services inherent to the realization of the Corporation’s mandate and the procedure enacted by the Federal High Court AMCON Rules, 2024.

    “In addition to the Unit in the Abuja Division, the Corporation is collaborating with the office of the Hon. Chief Judge of the Federal High Court to have this Unit established in Lagos, Port Harcourt, Enugu, Kano, and Kaduna divisions of the Federal High Court. This will enhance your performance and also ease your challenges while delivering your tasks to the Corporation. The FHC AMCON Rules, 2024 have robustly prescribed the procedure for realizing the extraordinary powers of the Corporation as enshrined in its establishment Act 2010 and subsequent amendments.  Our resource person will take you through the nitty-gritty of the Proceeding Rules.

    “Similarly, the Hon. President of the Court of Appeal, also in the exercise of the powers as the Hon. President of the Court of Appeal approved the Court of Appeal (Fast Track) Practice Directions, 2021 to expedite disposal of matters relating to AMCON debt recovery and indeed other institutions that relate with insolvency. The Fast Track Practice Directions has accommodated the expedient provisions of the AMCON Act, 2010 (as amended) by prescribing that the  Court of Appeal can exercise any power conferred by any law and impose conditions, including a condition to pay a judgment debt or other sum of money into Court’s Registry or specify the consequence (s) of failure to comply with the order or the condition. Similar provisions are also captured by the Supreme Court Rules, 2024.”

    Head, Corporate Communications Department of AMCON, Jude Nwauzor,  reminded the AMPs that “AMCON’s mandate was at creation summarised in two folds: To stabilise the financial system (which we have done through the acquisition of non-performing loans and providing funds to the banks to avoid a systemic failure in the nation’s financial system, and the recovery of these loans.”

    He stated Whilst AMCON has performed very well over the years, there is still room for improvement, adding that, “Our success depends greatly on you, our Asset Management Partners (AMPs), through your dedication, innovation and professionalism.

  • CSO sues AMCON, others over Ibadan Disco sale

    CSO sues AMCON, others over Ibadan Disco sale

    Civil society group, African Initiative Against Abuse of Public Trust, has filed a suit at Federal High Court in Abuja to challenge proposed sale of a 60 per cent equity stake in Ibadan Electricity Distribution Company (IBEDC) for $62 million.

    It described the amount as an undervaluation of the asset.

    Asset Management Corporation of Nigeria (AMCON), Bureau of Public Enterprises (BPE), Nigerian Electricity Regulatory Commission (NERC), and IBEDC are the defendants.

    The plaintiff in suit FHC/ABJ/CS/866/2025 contends that the transaction would result in a $107 million loss compared to the $169 million paid for the same stake during IBEDC’s privatisation in 2013.

    Represented by attorneys, led by Chibuzor C. Ezike, the group is asking the court to declare that AMCON, which holds the 60 per cent in trust for Nigerians, cannot sell or assign the shares for less than the original acquisition cost.

    The plaintiff argues that the price—pegged at N100 billion (about $62 million)—represents a $107 million loss and contravenes public interest.

    The plaintiff argues that the sale violates procurement principles and undermines transparency in asset management.

    It urged EFCC, ICPC and others to intervene and ensure accountability.

    The suit contends that selling such a vital public asset far below its value constitute economic sabotage and erodes public trust and contribute to the deepening energy crisis.

    The plaintiff is praying the court to “declare that AMCON holds the 60 per cent equity stake in IBEDC in trust for the Nigerian public and should act in their interest; and declare that the 2013 valuation of $169 million for the 60 per cent stake remains the minimum permissible price for any future sale, transfer, or disposal.

    “Nullify any transaction involving the sale of the shares at a value below $169 million, citing it as illegal, corrupt, and an abuse of office.

    “Restrain BPE and NERC from approving or consenting to any sale of the shares below the stated valuation, among others.’’

    “Set aside any concluded or attempted transaction conducted in violation of these principles.

    “Award legal costs as deemed appropriate by the court.”

    The plaintiff filed a statement of claim, a verifying affidavit, and documentary exhibits, including privatisation documents, media reports, and public notices, in support of its case.

    The CSO recounted the privatisation history of IBEDC, stating that in 2013, the 60 per cent equity stake was sold to Integrated Energy Distribution and Marketing Company Limited for $169 million, based on a valuation conducted by the National Council on Privatisation and BPE.

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    Following a default on loan obligations by the investor, AMCON assumed control of the shares via a receivership process, having acquired the loan from Polaris Bank (formerly Skye Bank) as an eligible bank asset.

    The plaintiff alleges that AMCON now plans to quietly sell the shares to “preferred investors” at N100 billion ($62 million), without a public bid or transparency, in a manner that undermines accountability and potentially facilitates corrupt enrichment.

    The plaintiff cited a Nigerian Tribune report dated April 10, 2025, titled “IBEDC Sale, Another National Asset Giveaway”, which criticised the deal as opaque and potentially corrupt.

    The report noted that IBEDC, Nigeria’s largest power distribution company, is responsible for electricity supply to over 30 million people across Oyo, Ogun, Osun, Kwara, and parts of Kogi, Ekiti, and Niger states.

    According to the publication, IBEDC’s asset base is reportedly valued at over N1 trillion, yet it is being sold for just a fraction of that.

    The report raised alarm about the secrecy of the transaction and the absence of competitive bidding, accusing AMCON, BPE, and NERC officials of facilitating a “giveaway” of a critical national asset.

    The court is yet to fix a date for the hearing.

  • AMCON recovers N2.1tr from debtors

    AMCON recovers N2.1tr from debtors

    The Asset Management Corporation of Nigeria (AMCON) has recovered over N2.1 trillion for the Federal Government despite facing stiff resistance from debtors.

    Speaking at a media briefing in Lagos over the weekend, AMCON’s Head of Corporate Communications, Jude Nwauzor, stressed the corporation’s commitment to recovering outstanding debts, particularly the N227.6 billion owed by Arik Air Limited (in Receivership) and its founder, Sir Johnson Arumemi-Ikhide.

    The recovery agency also stated that it currently has over 2,000 cases in court, as some of its debtors did not use the borrowed money for its intended purpose.

    AMCON reaffirmed its commitment to recovering the N227.6 billion owed by Arik Air Limited (in Receivership) and its founder, Sir Johnson Arumemi-Ikhide, amid ongoing legal battles and allegations of mismanagement.

    “At AMCON, we see the media as very strategic to our recovery mandate because most of these obligors run to the media with some skewed narratives in their desperation to make AMCON look bad.

    “The point remains that these are debtors who have contributed to killing the Nigerian economy.

    “The media must not allow them to eat their cake and have it,” Nwauzor said.

    He noted that as the media is the mirror of society, the management of AMCON is convinced that deeper collaboration between AMCON and the media will deliver positive dividends for the country.

    Nwauzor further added that the task of debt recovery has been arduous and challenging. He lamented how AMCON’s efforts have been thwarted, as several Nigerian companies are unwilling to pay without legal battles.

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     “AMCON has continued to face resistance from a number of debtors who are unwilling to pay without a fight,” he said. Adding: “One of these debtors is Arik Air Limited (in Receivership), an airline company owned by Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nigeria Limited (a power infrastructure company), Ojemai Farms Limited, and Ojemai Investment Limited.

    “These companies’ debts were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455,171,764,772.80 as of December 31, 2024.

    “Arik owes AMCON N227,637,469,394.34; Rockson Engineering N163,502,837,397.75, and Ojemai Farms N14,031,457,980.71.”

    Nwauzor explained that no matter the smear campaign being sponsored against AMCON, these debts must be recovered one way or the other.

     “The leadership of AMCON knows that there is no nice way of recovering debt. Because of that, obligors go to any length to assassinate the characters of both AMCON staff and management. They malign the name of AMCON, intimidate, and harass our personnel with every arsenal at their disposal.

    “Repeatedly, AMCON has made the point at every opportunity that all stakeholders, including the media, must view the AMCON mandate as one of serious national importance.

    “If at sunset AMCON is unable to recover the huge debt of over N4 trillion, it becomes the debt of the Federal Government of Nigeria, for which taxpayers’ money will be used to settle.

     “The implication is that the general public will be made to pay for the recklessness of only a few individuals who continue to take advantage of the loopholes in our laws to escape their moral and legal obligations to repay their debts,” he said.

    Nwauzor said the question AMCON would want the media to ask Arumemi-Ikhide is whether he indeed took these loans that led the banks to sell the loans to AMCON. If his answer is yes, the aviation media should also be interested in his effort(s) at repayment.

    He said, “Amongst several inaccurate claims, the founder of Arik, Arumemi-Ikhide, has consistently peddled a false narrative regarding his debt to AMCON, claiming that Arik never defaulted on its payment obligations to Union Bank and feigning ignorance of the debt owed to AMCON.

    “He has also alleged that the receivership was premature and claimed his loan was performing.

    “These claims are misleading. The intelligent public must ask: if the loan was performing, why was it sold and restructured? And why did he agree to the restructuring? Did he fulfill the agreed terms? “Arik’s debt originated from loans taken from Union Bank of Nigeria, Bank PHB (now Keystone Bank), and others.”

    AMCON explained that Union Bank classified the loan as non-performing and sold it in 2010 after warning Arik about its financial instability.

    “If the loan was performing, why was it sold? Why did he agree to the restructuring? Did he fulfill the agreed terms?” Nwauzor questioned.

    AMCON further revealed that Arik had a negative equity value of N80 billion in 2016, with total liabilities reaching N289 billion. By December 2016, the airline’s negative shareholder capital had surged to N139 billion, nearly equivalent to its AMCON debt.

    “Following years of financial distress, AMCON took over Arik in 2017, citing chronic mismanagement, flight cancellations, unpaid staff salaries, and regulatory violations. At the time, Arik was on the brink of collapse, struggling to maintain its aircraft and fulfill ticketed obligations.

    “Between November 2016 and January 2017, the airline suspended several operations, failed to pay for insurance, and owed around N30 billion to aviation regulators (NCAA, FAAN, and NAMA).

    “The government, concerned about the safety of the airline, the welfare of over 1,500 employees, and the stability of the aviation industry, urged AMCON to intervene,” the agency stated.

    In 2021, Arumemi-Ikhide challenged AMCON’s takeover in the Federal High Court, Lagos. But Justice Lewis-Allagoa upheld the receivership, affirming AMCON’s exclusive authority to manage Arik.

    “The validity of the receivership has been affirmed by the court and is not in question,” Nwauzor stated.

    Nwauzor added that despite the court ruling, Arumemi-Ikhide continued to dispute the debt, claiming that AMCON’s takeover was ‘premature’ and that his loans were performing. He also accuses the receivership of mismanaging Arik’s fleet.

    AMCON, however, dismissed these claims as false, stating that when it took over, only eight aircraft were operational—far fewer than the 30 planes Arumemi-Ikhide claims were in service.

    Some aircraft, AMCON alleged, had been used as collateral for personal debts and were later repossessed by creditors.

    AMCON, created in 2010 to stabilize the banking sector, has faced severe resistance from debtors, who often resort to legal delays and media campaigns.

    “The task of debt recovery has been arduous. If AMCON cannot recover these debts, the burden falls on taxpayers. The general public will be made to pay for the recklessness of a few individuals,” Nwauzor warned.

  • AMCON raises alarm over N4 trillion debt

    AMCON raises alarm over N4 trillion debt

    • Says Arik Air owes N445b as options for liquidation on the table

    The Asset Management Corporation of Nigeria (AMCON), yesterday raised the alarm over the humongous debt totalling N4  trillion it is owed by organisations as non-performing loans it inherited from Nigerian banks saying it will utilize every legitimate instrument at its disposal to recover the monies from companies, including Arik Air and others, which have refused to pay back.

    The intervention institution said failure to recover such funds from the non – complying debtors could deal a deadly blow on Nigeria’s financial system.

    Speaking at a briefing in Lagos, head of AMCON’s Corporate Communications Unit, Mr Jude Nwauozor, said some institutions such as Arik Air and about 12, 000 others have demonstrated resistance in paying the monies they took from banks to support their business at inception.

      He said the task of recovering the money has been arduous and challenging. He said: ” While several thousands of Nigerians and Nigerian companies have honoured their obligations, AMCON continues to face resistance from a number of debtors who are unwilling to pay without a fight. One of these debtors is Arik Air Limited (in Receivership), an airline company owned by Sir Johnson Arumemi-Ikhide, who is also the promoter of Rockson Nigeria Limited (a power infrastructure company), Ojeimai Farms Limited, and Ojemai Investment Limited. These companies’ debts were transferred by various banks to AMCON due to their non-performance, with a total indebtedness of N455, 171, 764, 772.80 billion as at December 31, 2024.

    “Arik owes AMCON N227,637,469,394.34 billion; Rockson Engineering N163,502, 837, 397.75billion and Ojemai Farms N14, 031, 457, 980.71 billion. “The fact of the matter is that no matter the smear campaign he is sponsoring against AMCON, these debts must be recovered one way or the other. The leadership of AMCON knows that there is no nice way of recovering debt. For that, obligors go to any length to assassinate the characters of both AMCON staff and management. They malign the name of AMCON, intimidate, and harass our personnel with every arsenal at their disposal.

    “If at sunset AMCON is unable to recover the huge debt of over N4 trillion, it becomes the debt of the Federal Government of Nigeria for which taxpayers’ monies will be used to settle.

    “The implication is that the general public will be made to pay for the recklessness of only a few individuals who continue to take advantage of the loopholes in our laws to escape their moral and legal obligations to repay their debts.”

    Read Also: Court sets aside bench warrant against ex-AMCON MD over alleged multi-billion fraud

    AMCON) said the  option to liquidate Arik Air is still on the table following several efforts it has made to revive the airline.

     AMCON, said the AMCON Act, in Section 6 empowers the corporation to purchase, manage, and dispose of EBAs, which include Arik.

    Nwauzor also noted that section 48 empowers the corporation to appoint a Receiver or Receiver Manager to take, manage, and dispose of assets of a debtor company like Arik.

    He said considering the powers that AMCON possesses according to the law, liquidating Arik Air remains an option for it.

    He said Arik was managed in its bad state and already insolvent, without any kobo from anyone by the corporation, adding that the Corporation met trade creditors to Arik debt, debt to its technical partners, and debt to other aviation experts all over the world.

    “Managing these debts was challenging for the corporation, which still can liquidate Arik. But here we are still managing Arik, which was already insolvent and still insolvent even as we discussed,” Nwauzor said.