News
FG to convert Arik, Aero Contractors to national carriers
The Asset Management and Corporation of Nigeria has said Arik and Aero Contractors airlines may be merged and converted to a national carrier.
The AMCON Managing Director/Chief Executive Officer, Gbenga Alade, stated this on Monday at an interactive session with media executives in Lagos.
According to Alade, both Arik and Aero Contractor are owing so much money that they may not be able to pay.
He stated that the corporation presented the idea of converting Arik and Aero Contractor to the former aviation minister but it was rejected.
“The former management of AMCON presented the idea of converting Arik and Aero to a national carrier. But the former aviation minister did not buy the idea. We will present it again because that is the best option.
“Unfortunately, the special purpose vehicle that was created by the former management of AMCON for the conversion of Arik and Aero to a national carrier had been sold. But we can create another SPV this,” he explained.
Recall that the former Minister of Aviation, Hadi Sirika, launched the Nigeria Air three days before the end of former President Muhammadu Buhari’s administration.
The development had elicited concerns among stakeholders over the ownership arrangement which gave Ethiopian Airlines a 49 per cent equity stake in the company.
The Federal Government had a 5 per cent equity, while a consortium of three Nigerian investors had 46 per cent.
Reacting to the deal in June 2023, the House of Representatives asked the Federal Government to suspend the operations of Nigeria Air, describing it as a fraud.
In August 2023, the incumbent minister, Festus Keyamo announced that the national carrier project was suspended till further notice.
Keyamo said, “It remains suspended. It was never Air Nigeria. It was not Air Nigeria. That’s the truth. It was only painted Nigeria Air. It was Ethiopian Airlines trying to flag our flag.
“If it is so, why not allow our local plane to fly our flag? So nobody should dispute that it was Nigeria Air.
“Air Nigeria must be indigenous, must be wholly Nigerian, and must be for the full benefits of Nigeria, not that 50 per cent of the profit is for another country.”
Recently, a Federal High Court sitting in Lagos halted the sale of Nigeria Air to Ethiopian Airlines.
The court declared null and void, the sale of the shares of Nigeria Air to Ethiopian Airlines after determining the issues in the suit.
Justice Ambrose Lewis-Allagoa ordered that the Federal Government’s plans to establish a national carrier, Nigeria Air, should be halted.
The judgment was delivered in favour of the Registered Trustees of the Airline Operators of Nigeria and five other aviation industry stakeholders.
At the briefing on Monday, Alade said the present status of Arik and Aero Contractors had been giving him sleepless nights.
“Believe me, it is a very difficult problem to resolve, and it is giving me sleepless nights, particularly Arik.
“Arik is owing so much that they cannot pay,” he stated.
Speaking further, Alade said, “There is a way out. We have met all their major international creditors. Afreximbank is one of them. They (Arik) are owing Afreximbank about $52m.”
After negotiations, he said the airline was only willing to take $8.5m out of the $52m.
“However, where will that $8.5m come from? Where? AMCON doesn’t have money of his own to put there? And then they negotiated and said, okay, ‘let’s take some of the engines of those things away in full and final settlement’. And the truth is that, if they took those engines away, Arik is finished.
“But we said ‘no, we cannot allow you to take it away. Let AMCON give you a kind of bank guarantee. And we will stretch it so that three planes are flying now and by the Lord’s grace, by February next year, we want to make seven planes fly for Arik,” he stated.
The Nigerian Airspace Management Agency grounded aircraft owned by Arik over a court order instituted by the airline’s creditor and billionaire businessman, Arthur Eze.
Eze had approached the court in protest against his unpaid $2.5m by the founder of Arik Air, Johnson Arumemi-Ikhide.
In a statement by the spokesperson of NAMA, Abdullahi Musa, the agency said the development stemmed from an enforcement action by the FCT High Court on July 19, 2024, which involved attaching Arik’s planes to secure the debt.
In 2016, AMCON took over the management of Aero Contractors after it dissolved the board of the company, appointing a manager to run the affairs of the company in an interim capacity.
AMCON said in a statement by its media consultancy firm that the decision to take over the management of the company was in furtherance of its responsibility of acquiring eligible bank assets and putting them to economic use in a profitable manner.
Similarly, Arik Air, founded by Mr Arumemi Johnson, was taken over by AMCON in 2017 after the carrier’s management failed to honour its debt obligation running into several billions of naira.
AMCON had taken over debts from local banks owed by Arik.
Last year, the corporation asked the owners of Arik to present a credible debt resolution plan to the bad debts manager if it hopes to recover the company from the Federal Government.
AMCON’s asset recovery efforts
In a move to recover outstanding debts of nearly N5tn, Alade announced plans to engage international asset tracers to locate and recover assets hidden by recalcitrant debtors offshore including those masqueraded under special purpose vehicles.
Alade stated that since the new management took over about five months ago, they have successfully collected approximately N100bn from several high-profile debtors and revised the sale of some assets.
He emphasised that the organisation had been receiving strong support from President Bola Tinubu, the Central Bank Governor, the Federal Ministry of Finance, the Attorney General of the Federation, and the National Assembly in their efforts to recover debts transferred by banks to AMCON during the different phases of eligible bank asset acquisition.
The AMCON CEO mentioned that the chairman of the House Committee on Finance had pledged to name and shame obligors, who had yet to repay their debts at a major stakeholders’ conference that would be held before the end of the year.
He revealed plans to organise a conference where senior officials from the Central Bank of Nigeria, relevant ministries, banks, and the judiciary would be invited to discuss the challenges posed by non-performing loans in the country.
He expressed confidence that resolving issues surrounding assets in the oil and gas sector would boost production, generate more foreign exchange, and create employment opportunities for citizens.
He noted that the corporation had achieved remarkable results in two of those assets in less than five months.
In the power sector, he disclosed that AMCON had made significant progress in one of the biggest distribution companies and an abandoned power project in Kaduna.
Alade emphasised the potential impact of addressing power challenges in Nigeria, stating that some banks with approximately 400 branches across the country spend as much as N500bn annually on diesel for their generators.
He believed that tackling the power sector would significantly improve the overall business environment.
According to Alade, AMCON is also working on assets in the telecommunications sector, aiming to revive dormant assets and bring them back into operation.
PUNCH
OSOGBO — The All Progressives Congress (APC) has rejected the outcome of the August 15, 2026, Osun State governorship election as declared by the Independent National Electoral Commission (INEC), insisting that it is not convinced that Governor Ademola Adeleke secured the highest number of valid votes.
INEC on Sunday declared Adeleke the winner after the Returning Officer, Prof. Joshua Olalekan Ogunwale, announced the final results at the commission’s headquarters in Osogbo.
Adeleke, who contested on the platform of the Accord Party, polled 511,067 votes to defeat the APC candidate, Asiwaju Bola Oyebamiji, who scored 444,815 votes. The African Democratic Congress (ADC) candidate, Dr Najeem Salaam, came third with 17,180 votes.
However, the APC said it would not accept the declaration without conducting a comprehensive review of the electoral process.
Speaking on Arise TV’s Prime Time programme on Monday, the Director-General of the APC campaign for the Osun governorship election, Hon. Oluwole Oke, said the party had commenced an audit of the results and electoral materials from the poll.
Oke said the party had directed its agents across the state to submit relevant result sheets for scrutiny as it investigates alleged infractions.
“We need to do the needful which is to evaluate the process, review the process and then form an opinion. We’ve embarked on an audit process; we’ve asked all our party agents to submit copies of Form EC8A, B, C to our secretariat for review. We need to inspect all the materials because we do not agree with the declaration of INEC, and that’s our position for now,” he said.
The APC campaign chief also dismissed suggestions that the party was under pressure to immediately accept the outcome following President Bola Ahmed Tinubu’s congratulatory message to Adeleke.
Tinubu had congratulated Adeleke after the declaration, describing the outcome as a reflection of the will of the people.
Reacting to the President’s position, Oke said Tinubu spoke in his capacity as President and a democrat following INEC’s declaration.
“Mr. President spoke as the Father of the nation and a democrat following the declaration by INEC,” he said.
Oke, however, maintained that the APC would rely on its own assessment of the election after completing its review.
“We’re on ground and politics is local and, like I’ve told you, what we’re doing is to conduct a thorough review of the entire process and form an opinion,” he said.
He added that the party would not be rushed into congratulating Adeleke, insisting that its preliminary position was that the governor did not secure the highest number of valid votes.
“We won’t be under any subtle pressure to easily reach out to congratulate Senator Ademola Adeleke because we believe he didn’t score the highest valid votes,” Oke said.
The APC is expected to determine its next course of action after completing its audit and reviewing the electoral materials and results submitted by its agents.
ABAKALIKI — The 2027 governorship race in Ebonyi State is gathering momentum, with the Peoples Democratic Party (PDP) candidate, Chief Ifeanyi Odii, unveiling a package of reforms aimed at improving the welfare of workers, teachers and retirees.
Odii made the commitments during a meeting with representatives of Ebonyi civil servants and members of the Nigeria Union of Teachers (NUT) at his Lagos residence, where he outlined his plans for a comprehensive reform of the state’s public service.
A major component of his agenda is a workers’ housing scheme designed to provide 1,000 housing units within his first year in office and up to 5,000 units over four years if elected governor.
Odii said the housing programme would be structured to minimise dependence on direct government funding, with workers’ contributions and existing pension assets forming part of the financing framework.
He said the initiative would address the housing difficulties faced by workers and retirees, particularly retirees who often struggle to sustain rented accommodation after leaving government service.
The PDP candidate also proposed a paperless digital loan platform that would allow workers to access loans against their contributory pension savings without the bureaucratic delays associated with the existing system.
On retirement benefits, Odii pledged that workers would have access to their entitlements immediately upon retirement, arguing that retirees should not endure prolonged delays in receiving benefits accrued during their years of service.
He further promised to reform the promotion process through computer-based promotion examinations capable of producing results instantly.
According to him, the digital system would reduce delays, curb opportunities for manipulation and promote greater transparency and fairness in the career progression of civil servants.
Odii said the proposed reforms were aimed at creating a public service where workers would have improved access to housing, credit facilities and timely retirement benefits, while ensuring a more transparent promotion system.
He presented the proposals as part of his broader agenda to improve workers’ welfare and reposition the Ebonyi State civil service for greater efficiency if elected governor in 2027.
The MainPower Electricity Distribution Limited (MEDL) has confirmed the death of one of its operations staff in an electrical accident.
The Head of Communications, MEDL, Mr Emeka Ezeh, who confirmed the incident in Enugu on Monday, said that the incident occured on Aug. 13 at Eke in Udi Local Government Area of Enugu State.
Ezeh said that the incident, which occurred at about 1p.m., involved Mr. Samson Okechi, the Team Lead, Abor, attached to the company’s 9th Mile District.
He said, “Okechi was carrying out maintenance work on a 50kVA/11kV pole-mounted distribution substation at Eke when he sustained an electric shock.
“Okechi was immediately evacuated to Our Saviour Hospital, Ngwo, for medical attention but was pronounced dead by the doctor on duty. His remains were subsequently deposited at a mortuary.”
He said that the incident was formally reported at the Ngwo Police Station for documentation and other necessary statutory actions.
Ezeh also debunked claims circulating on some social media platforms that Okechi was murdered or that the incident was the result of sabotage.
“I wonder why some people take pleasure in conjuring unfounded narratives and circulating them, thereby creating unnecessary tension and bad blood. This is so unfair,” he said.
He urged members of the public to disregard the claims, describing them as baseless.
According to him, Okechi had requested a Station Guarantee (SG) for the Okwe 11kV Feeder, which was granted at about 11:06 a.m. at the 9th Mile Injection Substation. The feeder was subsequently opened and tagged.
“This is a very unfortunate development and a big shock to all of us, his colleagues. Our hearts go out to his immediate family as they grieve,” Ezeh said.
The MEDL spokesman disclosed that MainPower management had commenced a comprehensive investigation to establish the immediate, underlying and root causes of the accident.
He said, “We are committed to ensuring that the investigation is thorough and evidence-based.
“The findings will be used to identify any gaps, determine appropriate corrective measures, and strengthen safety procedures and operational controls where necessary.”
Ezeh MEDL assured its customers and stakeholders that safety remained a paramount priority in its operations, adding that appropriate measures would be taken based on the outcome of the investigation.
Idiaye, a third-term lawmaker, takes over from Blessing Agbebaku, who resigned as Speaker on Monday amid moves by lawmakers to impeach him.
The emergence of Idiaye was said to have been influenced by the gentleman’s zoning arrangement in the Assembly, which provides that when the governor is from the Edo Central Senatorial District, the Speaker should come from Edo North.
Idiaye, being the oldest member from the Edo North Senatorial District, was subsequently elected Speaker.
Without the zoning arrangement, the Deputy Speaker would have automatically succeeded Agbebaku, according to the new Speaker.
Members of the Assembly were at the Government House to inform Governor Monday Okpebholo of the change in leadership.
Agbebaku was said to have resigned early on Monday following alleged moves by lawmakers to impeach him.
Reports gathered that 17 of the 24 lawmakers had signed a notice of impeachment on Sunday night, a development that may have prompted his resignation.
Agbebaku’s resignation was confirmed by Ebojele, who said details of the development would be made public later.
She said, “I can confirm the Speaker’s resignation but details will be made public later.”
The Speaker of the Edo State House of Assembly, Blessing Agbebaku, has resigned from his position.
Agbebaku stepped down on Monday amid moves by some lawmakers to impeach him.
His resignation was confirmed on Facebook by his media aide, Ivy Adodo-Ebojele, who said further details on the circumstances surrounding his exit would be made public later.
“EDO ASSEMBLY SPEAKER RT HON CHIEF BLESSING AGBEBAKU RESIGNS,” she wrote.
The development has thrown the Edo State House of Assembly into a fresh leadership crisis, with lawmakers expected to determine a new Speaker.
Details shortly…
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