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Tag: Asset Management Corporation of Nigeria (AMCON)

  • N5.4tr debt: AMCON seeks INEC’s backing to block 12,537 mega debtors

    THE Asset Management Corporation of Nigeria (AMCON) is seeking collaboration with relevant government agencies, including the Independent National Electoral Commission (INEC) to block 12,537 mega debtors from contesting elections.

    AMCON data showed that 62 high profile debtors owe it N10 billion and above each, representing 40 per cent of the 12,537 obligors under its management.

    Another 431 debtors, representing 37 per cent of the debtors, owe between N1 billion and N10 billion.

    To be affected also are 1,998 debtors, constituting 16 per cent of the total obligors, that owe between N100 million and N1 billion, while 10,046 debtors, representing seven per cent of the total obligors owe between N100 million and below, bringing the total number of bad loans under AMCON management to 12,537.

    Other agencies that would be involved in the plan are Independent Corrupt Practices Commission (ICPC), Economic and Financial Crimes Commission (EFCC), Department of State Security (DSS) and the Police.

    AMCON has been emboldened by the successful amendment of the AMCON Act 2019, which gives it special powers to tackle billionaire debtors.

    The Corporation is expected to provide a comprehensive database of the affected obligors to the identified agencies for the execution of the plans.

    Proposing the plan to AMCON, Justice Cecilia Olatoregun of the Federal High Court, Lagos said that with the signing of the Asset Management Corporation of Nigeria (AMCON) (Amendment) Act 2019 into law by President Muhammadu Buhari, the management of AMCON could adopt a new strategy including partnering with other sister agencies of government to stop its debtors from occupying elective positions.

    Speaking at the 2019 External Solicitors and Asset Management Partners (AMPs) of AMCON seminar organised by the Firm of Legal Academy in Lagos, Justice Olatoregun said the society has continued to allow AMCON debtors and people who cannot honour a simple obligation to contest elections, and in most occasions win and eventually occupy exalted offices.

    He said: “It is in our constitution that people of questionable characters and criminals should not contest elections but we are yet to see confident lawyers that can come out and challenge this people beyond reasonable doubt that they are not eligible to stand for elections as a result of their heavy indebtedness.”

    She disclosed that the AMCON (Amendment) Act 2019 has opened new doors, which smart lawyers can explore to help the agency, AMCON, and indeed Nigeria recover these huge debts.

    She said: “When election is approaching, lawyers can boldly approach the court and get orders stopping such obligor candidates from seeking votes from Nigerians thereby helping the economy.

    “Lawyers need to understand that the over N5.4 trillion owed AMCON belongs to all Nigerians, including the lawyers. Recovering the outstanding debt will have huge positive impact on the development of the economy of the Federal Republic of Nigeria.”

    AMCON’s Managing Director/Chief Executive Officer, Ahmed Kuru, also backed Justice Olatoregun’s stand on the mega debtors. The AMCON boss lamented the over N5.4 trillion debt would become a burden to the Federal Government if at sunset, AMCON failed to recover them.

    He said the amended Act has provided additional powers to an already strong Act of AMCON to take legal actions against recalcitrant debtors.

    Kuru explained that it was not unusual to periodically amend the law that governs activities of organisations such as AMCON, to deal with obligors that constantly try to avoid, circumvent and totally deny commitments and obligations.

    Read Also: I didn’t owe AMCON N569m, says Duke

    The AMCON boss added: “However, the amendment can only be effective to the extent that solicitors of AMCON understand the Act and thereafter utilise the far-reaching powers that have been vested in the Corporation.

    “In our experience, even prior to the amendment, not all the provisions of the Act were effectively utilised. From our interaction with the judiciary, some judges are not very impressed with the approach of solicitors to the application of the unique provisions of the AMCON Act. In some instances, judges have had to direct lawyers to relevant provisions of the Act. It is said that some lawyers are not at home with the provisions of the Act, particularly the AMCON special powers provided in the law.

    “The AMCON (Amendment) Act, 2019 is very robust, and we urge you to take advantage of the provisions to safeguard our collective public interest. That should be taken together with the 2010 Act and the 2015 amendment. It is important that we express our determination to recover the over N5.4 trillion debt giving its implication on the economy. We should not allow a few individuals to escape with our commonwealth. And we want to do it within the confines of the law.”

    Kuru urged legal practitioners, especially those handling AMCON related cases to sit up and test the full strength of the amended Act especially in the face of hard fighting obligors of AMCON in the overall interest of the economy and development of the country.

    The corporation was established on July 19, 2010, when AMCON Act was signed into law by former President Goodluck Jonathan, with a mandate to acquire bad loans from banks, pay the banks and recover the loans from the debtors.

  • 431 debtors owe AMCON between N1b and N10b

    Sixty-Two debtors are owing the Asset Management Corporation of Nigeria (AMCON) N10 billion and above each, the agency has said.

    The corporation was established on July 19, 2010, when AMCON Act was signed into law by former President Goodluck Jonathan, with a mandate to acquire bad loans from banks, pay the banks and recover the loans from the debtors.

    But eight years into its operation, the corporation is being owed N10 billion and above by each of the 62 high-profile debtors. The debt represents 40 per cent of the 12,537 obligors.

    AMCON said that 431 debtors, representing 37 per cent of the debtors, owe between N1 billion and N10 billion; 1,998 debtors, constituting 16 per cent of the total obligors, owe between N100 million and N1 billion while 10,046 debtors, representing seven per cent of the total obligors owe between N100 million and below bringing the total number of bad loans under AMCON management to 12,537.

    AMCON was created to be a key stabilising and re-vitalising tool aimed at reviving the financial system by efficiently resolving the non-performing loan assets of the banks in the economy.

    Read Also: AMCON: Beyond the here and now

    The corporation has in the last eight years of operation, bought Non-Performing Loans (NPLs) worth N5.4 trillion from banks.

    There is N3.8 trillion AMCON Bond held sorely by the Central Bank of Nigeria (CBN) and this is expected to mature by 2023.

    AMCON’s Managing Director Ahmed Kuru announced that the corporation has so far recovered N1 trillion from the bad debtors, and the agency was doing everything within the ambit of the ambit of the law to recover the remaining debts.

    But recovering the remaining debts from billionaire debtors, who are taking strategic steps to ensure they do not payback will remain an uphill task, and perhaps impossible.

    Financial pundits insist that since it took AMCON eight years to recover N1 trillion out of the N5.4 trillion bad debts, it is doubtful if it could recover substantial amount by 2023, which is its sunset timeline. The N1 trillion recovery represents a meagre 18.51 per cent of the total debt portfolio.

    Speaking on AMCON operations and results achieved so far, a Board Member at Standard Bank Group, South Africa, Atedo Peterside, said that one third of the money that the Federal Government squandered on AMCON can resolve most of Nigeria’s social and economic problems including fixing the power sector.

    Peterside who did not elaborate further on AMCON’s operation, spoke during ‘A Consultative Roundtable with The Central Bank of Nigeria Governor’ tagged: ‘Going for Growth’ held in Lagos.

    The shareholders of banks contributing 0.5 per cent of their total assets as at the date of their audited financial statements, annually for 10 years to the Sinking Funds are also furious about AMCON operations.

    They are seeking stoppage of such funding to enable them have enough value for their investments in the lenders. There is also N50 billion CBN contribution to  AMCON operation which is spread across 10 years.

    As highlighted earlier, N3.8 trillion was raised by the Federal Government through the CBN-purchased bonds for AMCON operations. The raised fund represents 42.64 per cent of the N8.91 trillion annual budget for 2019 already signed by President Muhammadu Buhari.

     

  • AMCON to sack asset partners over N740b debt recovery

    The Managing Director/CEO, Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has hinted on the corporation’s plan to disengage Asset Management Partners (AMPs) that are not effective in recovering N740 billion debts assigned to them.

    The AMPs are currently handling over 6,000 accounts within AMCON portfolio but outsourced to them.

    The accounts outsourced to AMPs constitute only 20 per cent or N740 billion of the total Eligible Bank Assets (EBA) portfolio of N3.7 trillion.

    Kuru said AMCON places equal importance on the recovery efforts as they count towards the achievement of the corporation’s core mandate.

    He also promised the corporation may assign more accounts to AMPs that have shown aggression and zeal based on the review of the AMP scheme so far.

    Kuru spoke at the 2019 edition of the AMCON/AMPs Interactive/Feedback Session in Abuja.

    AMPs, are consortiums appointed by AMCON after a rigorous selection process with specialist skills required to ensure recovery and debt resolution; banking, legal, valuation and accounting.

    Kuru said that collaborating with AMPs became necessary because AMCON has a total loan portfolio of over 12,000 loans of various sizes and sectors that are still lingering many years after the corporation was established.

    He stated that when this is compared to AMCON’s staff strength, it became obvious that the corporation surely needed a strategic approach to improve coverage, recovery and results.

    To achieve the mandate as part of the corporation’s renewed strategy to resolve these loans, he said, AMCON in 2016 introduced the AMP scheme to assist the corporation’s recovery activities especially in tracing, identification and location of obligors with the intent to resolve their outstanding indebtedness; tracing, identification and location of assets of obligors (both pledged and un-pledged) to enhance the EBA value, and achieve set recovery objectives.

    The AMPs, he further said, were also empowered to enable them get involved in negotiation of settlement & restructuring terms with identified obligors in line with approved guidelines; pursuing & enforcing debt recovery and collection activities geared towards optimization of assigned portfolio to achieve set targets and initiation of legal actions to further the loan recovery mandates in line with approved guidelines, amongst other obligor engagements.

    With this laid down guideline and with AMCON sunset in sight, Kuru said AMCON is more aggressive with its recovery strategy and also expects its partners to equally step up their game because the corporation will no longer accommodate any AMP that is not moving on the same speed.

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    “We know it is not easy the jobs we have assigned to you. Recovery is a difficult job but even at that, a few of you (AMPs) have shown they cannot cope; we may have no choice to disengage such partner.

    “But those that have done well, we will upgrade and even assign more responsibilities to such partners because there is indeed need for speed in this assignment.

    “We are convinced that the AMP programme is key to the success of AMCON, and we will give you all the necessary support to make you succeed in this exercise,” the AMCON boss added.

    Principal Partner, Lexavir Partners, Mr. Francis Chuka Agbu, and AMCON’s Group Head, Enforcements, Mr. Aliyu Kalgo who also spoke at the forum, called on the AMPs to leverage the special powers as provided by the AMCON Act 2010 as amended to improve on their assignment.

  • Unpaid Debt: AMCON takes over Sen. Oduah’s assets

    The Asset Management Corporation of Nigeria (AMCON) has taken over Sea Petroleum Oil & Gas Ltd. and other assets belonging to Sen. Stella Oduah-Ogiemwonyi over an unpaid debt of about N20 billion.

    AMCON said the takeover followed an injunction granted by Justice M.S. Hassan of the Federal High Court, Lagos against Sea Petroleum Oil & Gas Ltd.

    The corporation in a statement by its Head, Corporate Communications, Mr Jude Nwauzor, on Friday said that Oduah-Ogiemwonyi had been having a running battle with AMCON over her inability to settle her huge debt of nearly N20 billion.

    The statement said that AMCON purchased the Eligible Bank Assets (EBAs) of Sea Petroleum & Gas from Union Bank Plc. sometime in 2012.

    It said that in spite of overtures and genuine efforts made by AMCON to reach an amicable settlement, the senator and her co-promoters had remained recalcitrant.

    “Having exhausted all avenues of peaceful resolution of the humongous debt, AMCON had no other choice than to refer the matter to court,” the statement said.

    It said that the order also affected the senator’s other business interests for which AMCON had since appointed Moyosore Jubril Onigbanjo (SAN) as receiver over the assets of Oduah-Ogiemwonyi; Sea Petroleum Oil & Gas; Sea Petroleum and Gas FZE as well as Star Tourism and Hotels Ltd.

    The statement said that the court also ordered the freezing of the funds of Sea Petroleum & Gas and its affiliated companies and principal promoters, held anywhere by any entity or persons in Nigeria.

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     It also authorised AMCON and its receiver, Onigbanjo to take over all assets pledged as collateral for the facility by Sea Petroleum Oil & Gas Ltd.

    “In compliance with the order of the court, AMCON through its receiver, Moyosore Jubril Onigbanjo, SAN, today (May 18), simultaneously took possession of the assets of Sea Petroleum & Gas Ltd. and its affiliated companies.

    “Justice Hassan specifically, ordered Sea Petroleum Oil & Gas Ltd. and its affiliated companies to hand over the company’s business, which sits on over 9000 square kilometres of land in the fastest developing area of Lagos State along the Lekki-Epe Expressway,” it said.

    Other affected assets, according to AMCON, are two tank farms of 500 metric tonnes capacity; a property at Maiyegun Tourism Zone, Lekki Peninsula Scheme 11, Lagos Island and a filling station complex at kilometre 14, Lekki-Epe Expressway, Ikota, Lagos.

    The court order also listed a host of other assets across the country, including Plot 2, Block 12C, Babafemi Osapa Crescent Lekki; Block 5, House 4A Mobolaji Johnson Estate, Lekki, and office/filling station at Jakande in Lekki, Lagos, among others.

  • 2018 Budget: LCCI lauds 30.8% capital allocation

    2018 Budget: LCCI lauds 30.8% capital allocation

    The Lagos Chamber of Commerce and Industry (LCCI) has commended the Federal Government for allocating 30.8 per cent of the 2018 Federal Budget to capital projects.

    The Director-General of LCCI, Mr Muda Yusuf, gave the commendation in a statement on Thursday in Lagos.

    President Muhammadu Buhari presented the N8.6 trillion 2018 Federal Budget to the National Assembly on Nov. 7.

    The N8.6 trillion 2018 Budget represents a 16 per cent increase in nominal term over the 2017 Budget of N7.44 trillion.

    “We welcome the priority accorded to infrastructure in the budget proposal focusing on roads, railways, power projects, water projects and second Niger bridge.

    “Reference was made to the embarrassing state of the access to the ports and the public private initiative to fix it.

    “We welcome the decision to connect the Lagos-Ibadan standard gauge to the Apapa and the Tin-Can Island port.

    “But time is of the essence.

    “There is an urgent need to save the private sector and investors from the agony of persistent gridlock at the Apapa and Tin-Can ports which accounts for over 70 per cent of import and export cargo in the country,” he said.

    Yusuf said that it was imperative to formulate policies to mobilise private sector capital into the infrastructure space.

    He said that consideration should be given to further reduction in cost of governance and scaling up remittances of surplus from MDAs to the coffers of government.

    The LCCI boss also said there was the need to refocus government’s tax drive from direct to indirect taxes in line with the National Tax Policy.

    “A disproportionate focus on direct taxation is detrimental to investment and hard work.

    “There is also need to curb the growing incidence of multiplicity of taxes and levies on businesses at all levels of government,” he said.

    According to him, as the budget appropriation process progresses, there is need for clarifications on the status of budgetary appropriation for petroleum subsidy both for the current fiscal year and 2018.

    “It is also necessary to throw some light on the status of the estimated N800 billion debt to oil marketers.

    “Investors in this sector would like to see a sustainable framework for the management of petrol subsidy,” Yusuf said.

    He also called for clarification on the status of Asset Management Corporation of Nigeria (AMCON) debts estimated at about N5 trillion within the debt management framework of the government.

    Yusuf said that clarification on the framework for payment of contractors’ arrears which cuts across various MDAs should be provided.

    “The non-payment of contractor’s arrears has taken a huge toll on many contractors.

    “The amount involved has been estimated at over N1 trillion,” he said.

    The LCCI boss appealed to the National Assembly to ensure speedy consideration of the appropriation bill toward normalising the budgetary cycle and bringing greater predictability to the economic management process.

    NAN

  • AMCON, EFCC collaborate on debt recovery

    AMCON, EFCC collaborate on debt recovery

    The Asset Management Corporation of Nigeria (AMCON) says it is collaborating with the Economic and Financial Crimes Commission (EFCC) as strategy to recover N4.6 billion from debtors across the country.

    The corporation said this   in a statement issued after a meeting with the management of the EFCC on Thursday in Lagos.

    It said the decision was for both agencies to consolidate on the gains in the areas of investigating, prosecuting and compelling all obligors of AMCON in accordance with the relevant statutes.

    The agencies said they were working on taking another look at some banks and their officials that were instrumental to the abuse and violation of internal processes that led to the huge non-performing loans in AMCON’s portfolio.

    “The agencies are planning to revisit, reinvestigate and duly prosecute such banks and the responsible officials,” the statement said.

    The EFCC Acting Chairman,Mr Ibrahim Magu, who welcomed the Managing Director,AMCON Mr Ahmed Kuru, and his team described the assignments of both agencies of government as “very tough, overwhelming and challenging.”

    He however added that he was happy that AMCON under Kuru is doing everything within its mandate to confront the obligors with all the risks involved in the process of doing so.

    He said it was for that reason that EFCC established AMCON Desk with dedicated EFCC officials that ensured that all AMCON related cases in EFCC received speedy attention.

    Magu assured Kuru that the AMCON Desk at EFCC would continue to be functional adding that the EFCC was willing to increase the number of personnel on the desk if so required.

    He said that the agency would be willing to establish a Lagos branch if necessary to make sure these huge loans are recovered in the interest of the Nigerian economy.

    The EFCC boss affirmed that some of those obligors “who took loans without the intention of paying back” did not envisage that someday an agency like AMCON would come knocking on their doors seeking to recover the loans.

    Magu, therefore, condemned the impunity with which those transactions were done.

    According to him, giving the similarity in the objectives of both agencies, the acting EFCC boss said there was need for joint training towards fostering better understanding between AMCON and the EFCC.

    While reaffirming the commitment of the EFCC to cooperate and provide the much needed support to AMCON, Magu urged AMCON to ensure justice is done in all cases.

    He said that was because most of the obligors might not have acted alone in their unwillingness to repay, but might involve the connivance of some of the bank officials whose motive was to cheat the banks ab-initio.

    He, however, disclosed that “in appropriate circumstances, these bankers would also be called upon to account for their roles in granting these questionable facilities.”

    Kuru thanked the Acting Chairman of EFCC for receiving the AMCON delegation and appreciation for his passion and cooperation in the collaboration with AMCON toward recovering the enormous bad debts from recalcitrant obligors of AMCON.

    He also  thanked the acting chairman for creating that unit that had led to several recoveries.

    while appreciating the contribution of the AMCON Desk at EFCC.

    He said that AMCON was willing to provide the required support to the AMCON Desk at EFCC by providing information, logistics and training to the team.

    Recounting AMCON’s role in the economy especially in the banking sector, Kuru said that since its establishment, AMCON acquired debts from 22 banks worth N3.7 trillion and provided financial accommodation to 10 banks of about N2.2 trillion.

    He observed that despite AMCON’s recovery efforts, the corporation still holds unresolved loans in excess of N4.6trillion which represents about 75 per cent of total national budget.

    The managing director expressed concern that failure on the part of AMCON to resolve the debts will have far reaching implication for the nation at large.

  • Oil marketers urge FG to pay outstanding fuel subsidy claims

    Oil marketers urge FG to pay outstanding fuel subsidy claims

    The Major Oil Marketers Association of Nigeria (MOMAN) has appealed to the Federal Government to pay the outstanding fuel subsidy claims to its members to pay back their bank loans.

    The Executive Secretary of the association, Mr. Obafemi Olawore, made the plea in an interview with the News Agency of Nigeria (NAN) on Wednesday in Lagos.

    NAN reports that some oil marketers had on June 18 appealed to the Federal Government to pay their outstanding debts of two  billion dollars (N720 billion) owed on importation of petrol products and the accrued interests on bank loans.

    Olawore said that the immediate payment of the accumulated subsidy claims would salvage the banks from total collapse over the huge debts owed them by marketers.

    According to him, the delay in repayment of the loan debts owed the banks by marketers had led to retrenchment in the banking and the oil and gas sectors.

    “We (marketers) are afraid that if the money is not paid on time, this may attract the Asset Management Corporation of Nigeria (AMCON) to take over our businesses.

    “The debts had imparted grossly on marketers, while only very few marketers are presently importing insignificant quantity of petroleum products into the country,” he said.

    Olawore said that the plea was to avert the scarcity of petroleum products in the country.

    The executive secretary said that inability of the marketers to import fuel had impacted negatively on loading activities at the Apapa and Dockyard private depots.

    Olawore said that the NNPC had become the sole importer of petroleum products, while marketers were queuing to get the products on credit.

    He said that the Federal Government paid over N300 million daily as fuel subsidy.

    Olawore said that anytime there was problem in the banking sector, it was always traced to the oil sector, because of the unpaid loans collected by marketers borrowed.

    “Once we (marketers) are unable to pay, the banks will have problems,” he said.

    Olawore said that some banks might be having problem with their correspondence banks abroad due to the unpaid loans.

    “This can have negative effects on the financial sector’s stability, which is not good for the economy.

    “A situation where the banks are being owed N800 billion constitute major threat to the continuous existence of the sector,” he said.

  • N11b fuel ‘theft’: Court orders DSS to produce Ubah

    N11b fuel ‘theft’: Court orders DSS to produce Ubah

    The Federal High Court in Lagos Tuesday ordered the Department of State Services (DSS) to produce Managing Director of Capital Oil and Gas Limited, Ifeanyi Ubah, on Friday.

    Justice Mohammed Idris ruled on an ex-parte application by Ubah through her counsel, Mrs. Ifeoma Esom.

    The businessman is praying the court to compel DSS release him from its custody.

    Esom argued that unless the court orders the applicant to be produced in court within 48hours, the DSS and the Economic and Financial Crimes Commission (EFCC) would continue to keep him in their custody.

    She said they may “coerce him into acceding to whatever conditions they impose on him in exchange for his freedom”.

    The EFCC, the DSS Director-General, Nigeria National Petroleum Corporation (NNPC) and the Asset Management Corporation of Nigeria (AMCON) are among the respondents.

    The Service arrested Ubah over alleged “economic sabotage” and “illegal sale of petroleum products stored in his tank farm by the NNPC”.

    “So far, it has been established that the products stolen amount to over N11billion,” the DSS said in a statement.

    In a supporting affidavit to Ubah’s application, Capital Oil’s Secretary, George Oranuba, said the DSS acted in disregard of “the constitutional doctrine of separation of power and sanctity of the judicial process”.

    According to him, the arrest was over allegations made by the NNPC and AMCON, which were already subject of a lawsuit.

    “Notwithstanding the pendency of this suit and the service of the originating process as aforesaid, the respondents again invited Ubah to report to their offices in respect of the same allegations made by the NNPC and AMCON, which is the subject matter of the instant suit,” Oranuba said.

    Oranuba said a “throughput agreement” between Capital Oil and NNPC allows for “conversion and diversion of products by ‘operators’ so long as the operator is prepared to re-deliver the products within seven days of demand by the products owner or to pay a penalty for non-re-delivery”.

    According to him, the failure to re-deliver was a “mere” breach of contract, which can be remedied by the payment of penalty to the owner, and was not a criminal act.

    “The throughput agreement expressly states that any penalty due for non-re-delivery is to be treated as a debt and I verily believe that law enforcement agencies are not allowed to operate as debt collectors,” the deponent said.

    Oranuba also said NNPC was indebted to Capitol Oil in “excess of N13billion”, yet the company did not call law enforcement agencies to collect the debt.

    The DSS claimed Ubah had further engaged “in other activities inimical to national security and public order”.

    “In furtherance of his gimmicks to undermine the government and people of Nigeria, he has incited members of the Petroleum Tanker Drivers (PTD), a critical player in the downstream sub-sector of the Petroleum Industry, to refuse/stop the lifting of products,” it said.

    But, the PTD wing of the National Union of Petroleum and Natural Gas Workers (NUPENG) faulted the DSS over the allegation, saying no individual or institution can be allowed to use tanker drivers to cause economic sabotage.

    The union, in a statement by its national chairman, Otunba Salmon Oladiti, dismissed the allegation as “baseless and unfounded”.

     

  • Arik Air management restates commitment to safety standards

    The new management of Arik Air has reiterated commitment to high safety standards as it continues with the task of re-positioning the airline.

    Mr Simon Tumba, Arik air media consultant, said on Friday in a statement that the new management of the airline is more safety conscious.

    “Irrespective of the enemies of the government and their resolve to transform the career, the management of Arik (under receivership) is not distracted.

    “Arik will continue to maintain the highest operational and safety standards, which the airline has been known for since its inception in 2006,” he said.

    The News Agency of Nigeria (NAN) reports that the airline was on Feb. 9 taken over by the Asset Management Corporation of Nigeria (AMCON) due to its huge debt profile.

    AMCON had thereafter appointed Capt. Roy Ilegbodu, a veteran aviation expert, to manage the airline under the receivership of Mr Oluseye Opasanya (SAN).

    Tumba said the takeover of the airline by AMCON had not in any way eroded the confidence of the flying public and all other business partners of the largest carrier in Nigeria.

    According to him, the new management of the airline is more safety conscious than the former management which neglected critical details that are needed to run a sensitive business like an airline.

    “Ilegbodu has worked at the highest level as a regulator when he served the Nigerian Civil Aviation Authority (NCAA).

    “He has successfully managed at least two major airlines in the country, which is why he is well regarded and respected in the airline industry.

    “It would be recalled that when the new Arik management team took over the affairs of Arik in February, they met a depleted fleet and 18 unserviceable aircraft.

    “There was no single spare part in the store, which is highly unethical and dangerous in aviation business.

    “It was, therefore, only a matter of time for the few serviceable aircraft to be grounded,” Tumba said.

    He disclosed that the maintenance/engineering department of the airline was now alive to its responsibility of ensuring that Arik Air’s fleets are maintained according to airworthiness standards at all times.

    According to him, the new management of the airline has ordered more aircraft spares, which have started arriving and in the coming days more aircraft will become serviceable and ready to join the fleet.

  • Arik shareholders to court: We won’t be liable for any crash 

    Arik shareholders to court: We won’t be liable for any crash 

    Shareholders and directors of Arik Air Limited have filed a fresh suit at the Federal High Court in Lagos over the takeover of the airline by the Asset Management Corporation of Nigeria (AMCON).

    They are praying the court, amongst several reliefs, for a declaration that the defendants would be personally liable for any air crash arising from non-compliance with the Nigeria Civil Aviation Agency (NCAA) Act and regulations, including any claims for compensation and criminal liability arising therefrom.

    In their statement of claim, the plaintiffs alleged that Arik’s aircraft are not receiving adequate and scheduled maintenance as well as regular supply of proper spare parts.

    They claim that the over 10 aircraft parked at the Arik Air Hanger are not on a maintenance and storage program and thus the safety of passengers currently being ferried on board the aircraft cannot be guaranteed.

    They alleged that there is a risk that lives could be lost if proper spare parts, maintenance and storage programs are not implemented.

    The plaintiffs accused the Receiver Manager appointed by AMCON of lacking the expertise and technical capacity to manage Arik Air.

    The plaintiffs also are seeking court orders directing the Receiver Manager to procure spare parts from only credible suppliers.

    They also prayer for an order directing NCAA officials and officers of the International Air Transport Association (IATA) and the International Civil Aviation Organisation (ICAO) to undertake an independent search and audit of the airline to ensure compliance with safety standards.

    AMCON had on February 8 announced its takeover of Arik Air Limited following a court order.