AMCON Takes Over Arik Air

By Dipo Olowookere

Foremost airline in Nigeria, Arik Air, has been taken over by the Federal Government through the Asset Management Company of Nigeria (AMCON).

The takeover was announced by the government on Thursday following crisis rocking the company.

Last December, some aggrieved workers shutdown the company due to its inability to pay them for months.

Speaking on the takeover today, AMCON explained that the move is to instil sanity in the country’s aviation sector and prevent a major catastrophe.

Spokesman of the agency, Mr Jude Nwauzor said, “The development will afford Arik Airlines, which is the largest local carrier in the country, to go back to regular and undisrupted operations, avoid job losses, protect investors and stakeholder funds as well as ensure safety and stability in the already challenged aviation sector.”

It was disclosed that under the new arrangement, the Managing Director of Arik Air, Mr Chris Ndolue, will step down for Mr Roy Ilegbodu, a veteran aviation expert, under the receivership of Mr Oluseye Opasanya.

AMCON was set up the Federal Government in July 2010 to take over bad loans of commercial banks in the country.

Arik Air, established in 2006, is owned by Sir Johnson Arumemi-Ikhide.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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