Connect with us

latest

AMCON Considers Merging Arik and Aero Contractors to Create National Carrier Amid Debt Crisis

Published

on

AMCON Considers Merging Arik and Aero Contractors to Create National Carrier Amid Debt Crisis....KINDLY READ THE FULL STORY HERE▶

The Asset Management Corporation of Nigeria (AMCON) is contemplating a merger between Arik Air and Aero Contractors as a solution to their mounting debts, with the possibility of converting the merged entity into a national carrier. This announcement was made by AMCON’s Managing Director and Chief Executive Officer, Gbenga Alade, during an interactive session with media executives in Lagos.

Alade revealed that both Arik and Aero Contractors are burdened with substantial debts, which they are struggling to repay. The idea of merging the two airlines and converting them into a national carrier was previously proposed to the former Minister of Aviation but was rejected. However, Alade stated that AMCON plans to reintroduce the proposal, believing it to be the best course of action.

“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,” Alade said. Despite the previous rejection, AMCON remains optimistic, even though the special purpose vehicle (SPV) initially created for this conversion has been sold. Alade mentioned that a new SPV could be established to facilitate the merger.

This development comes after the controversial launch of Nigeria Air by former Aviation Minister Hadi Sirika, just days before the end of President Muhammadu Buhari’s administration. The launch, which granted Ethiopian Airlines a 49% equity stake in the company, sparked concerns among stakeholders about the ownership structure. Following this, the House of Representatives in June 2023 called for the suspension of Nigeria Air, labeling it a fraud.

The new Minister of Aviation, Festus Keyamo, later announced the suspension of the Nigeria Air project, clarifying that it was never truly a Nigerian airline but rather a venture by Ethiopian Airlines using the Nigerian flag. Keyamo emphasized the importance of having a national carrier that is wholly Nigerian, serving the full benefits of the nation.

In a recent legal twist, a Federal High Court in Lagos nullified the sale of shares of Nigeria Air to Ethiopian Airlines, halting the Federal Government’s plans to establish the national carrier. The court’s decision was in favor of the Registered Trustees of the Airline Operators of Nigeria and other aviation stakeholders who opposed the sale.

The financial struggles of Arik Air and Aero Contractors have become a significant concern for AMCON. Alade admitted that the current status of these airlines has been a source of stress, particularly due to the large debts they owe. Arik, for example, owes about $52 million to Afreximbank, one of its major international creditors. After negotiations, the airline offered to settle for $8.5 million, but the source of this payment remains uncertain.

To prevent Arik from losing vital assets, such as aircraft engines, which are critical for its operations, AMCON is exploring alternatives. Alade mentioned that the corporation is working on ensuring that more of Arik’s planes are operational, aiming to have seven planes flying by February next year.

The financial troubles of Arik Air are further complicated by a recent court order that led to the grounding of its aircraft by the Nigerian Airspace Management Agency (NAMA). This enforcement action was initiated by billionaire businessman Arthur Eze, who is owed $2.5 million by Arik’s founder, Johnson Arumemi-Ikhide.

AMCON’s involvement in the management of Arik and Aero Contractors dates back to 2016 and 2017, respectively, when the corporation took over the airlines due to their inability to meet debt obligations. Despite efforts to recover the companies, the financial situation remains dire.

As part of its broader asset recovery strategy, AMCON is taking steps to recover nearly N5 trillion in outstanding debts. This includes engaging international asset tracers to locate and recover assets hidden by debtors abroad. Alade highlighted that the new management has already recovered approximately N100 billion from high-profile debtors in just five months, with strong support from the Federal Government and other key stakeholders.

AMCON is also focusing on resolving issues in the oil and gas sector, which could significantly boost production, generate foreign exchange, and create employment opportunities. Additionally, the corporation is addressing challenges in the power and telecommunications sectors, aiming to revive dormant assets and improve the overall business environment in Nigeria.

latest

‘He Has Remembered The Poor’ – Oshiomhole Speaks On Tinubu’s ₦70,000 Allowance,

Published

on

The Senator representing Edo North, Adams Oshiomhole, has praised President Bola Tinubu’s administration, insisting that the government is performing well and deserves recognition for its efforts.....KINDLY READ THE FULL STORY HERE▶

Oshiomhole specifically pointed to the approval of an additional ₦70,000 transport allowance for workers, saying the decision demonstrates the President’s concern for the welfare of ordinary Nigerians.

The former Edo State governor made the remarks on Thursday during an appearance on Channels Television’s Politics Today.

He argued that the allowance would provide significant relief to low-income earners, particularly workers who previously earned ₦70,000 monthly.

“I think this government is doing well. If a man who was on ₦70,000 now is given ₦70,000 addition that makes it ₦140,000 for him it’s a hundred percent increase and if you know what ₦10,000 means for the real masses, you’ll appreciate that Tinubu has shown that he cares,” Oshiomhole said.

The Federal Government approved the monthly ₦70,000 transport support for workers across all levels for an initial six-month period beginning in November 2026.

The decision followed a meeting with the Nigeria Labour Congress (NLC) on October 27.

During the interview, Oshiomhole also criticised the administration of former President Olusegun Obasanjo, under which former Vice President Atiku Abubakar served.

He alleged that the administration struggled to guarantee the regular payment of workers’ salaries.

The senator further argued that the 2027 presidential election would offer Nigerians a choice between Tinubu, whom he credited with unifying the exchange rate, and Atiku, whose administration he accused of maintaining multiple exchange rates that favoured people based on their connections.

Continue Reading

latest

Man United Owner Avram Glazer Makes Stunning Admission About Winning Trophies.

Published

on

Manchester United co-owner Avram Glazer has maintained that the club can continue to enjoy commercial success even without winning major trophies, a position that could further upset supporters unhappy with the team’s recent performances.....KINDLY READ THE FULL STORY HERE▶

The 66-year-old American businessman made the remarks at Deutsche Bank’s inaugural Sports Investment Conference in London, where he discussed the connection between a football club’s performances on the pitch and its financial value.

According to The Athletic, Glazer argued that Manchester United’s commercial strength is not necessarily dependent on winning silverware.

He reportedly cited American sports franchises such as the New York Yankees and Dallas Cowboys, which have retained their global commercial appeal despite going through lengthy periods without winning major trophies.

Glazer, who has been involved in Manchester United’s ownership since 2003, believes the club can continue generating significant revenue even when its performances on the pitch fail to meet expectations.

His position is similar to comments previously made by former United executive vice-chairman Ed Woodward, who told investors in May 2018 that the team’s performances had little meaningful impact on the club’s commercial operations.

Despite their recent difficulties, Manchester United remain the third most valuable football club in the world, according to Forbes, behind Real Madrid and Barcelona.

Glazer’s comments come amid growing frustration among United supporters over the club’s ownership and performances. Fans have repeatedly staged protests against the Glazer family, including during the club’s recent Champions League encounter with Roma.

United ended a nine-match winless run with a dramatic 3-2 comeback victory over the Italian side. Matias Soule and Donyell Malen had put Roma ahead before Bruno Fernandes converted a penalty and Matheus Cunha scored twice to complete the turnaround.

However, Cunha was sent off during stoppage time and needed an escort off the pitch after the final whistle.

Despite the European victory, Manchester United remain close to the Premier League relegation zone, with only goal difference separating them from the bottom three.

Manager Michael Carrick is under increasing pressure to improve the team’s results, with United scheduled to host Aston Villa on Sunday.

Continue Reading

latest

Boko Haram Deal: What Defence Headquarters Says About Alleged Agreement With FG.

Published

on

The Defence Headquarters (DHQ) has denied reports that the Federal Government reached a ceasefire agreement with Boko Haram, the Islamic State West Africa Province (ISWAP) or other criminal groups operating across the country.....KINDLY READ THE FULL STORY HERE▶

The denial follows a report alleging that the Federal Government entered into a secret peace deal with the faction of Boko Haram led by Bakura Doro. The report claimed the alleged agreement was responsible for the relative calm recorded in parts of the North-East over the past three months.

However, speaking during a joint security briefing in Abuja, the Director of Defence Information, Major General Samaila Uba, dismissed the claims, insisting that no ceasefire arrangement existed with the terrorists.

Uba maintained that military operations against insurgents, kidnappers and other armed criminal groups would continue nationwide.

He said, “On the issue of whether there is a ceasefire with Boko Haram, I want to make it clear that there is nothing like a ceasefire.

“Considering the terrorists neutralised, suspects arrested, victims rescued and other successes recorded across our operations, it is clear that we are not relenting.

“We will continue to sustain pressure on these criminal elements.”

The defence spokesman explained that the military’s operations were not limited to Boko Haram and ISWAP but also covered kidnappers and other armed groups threatening the lives and security of Nigerians.

“Our operations are not limited to Boko Haram or ISWAP. They also target kidnappers and other criminal elements who take up arms against innocent citizens,” he stated.

He warned that anyone involved in criminal activities would face lawful military action or be brought before the courts.

“Anyone involved in criminal activities that threaten the lives and security of Nigerians will either be eliminated through lawful military operations or brought to justice,” Uba added.

Addressing reports that insurgents were moving into areas where they had previously been less active, Uba described the development as an indication of the impact of ongoing military operations.

He, however, stressed that the Armed Forces were not taking the situation lightly, adding that efforts were underway to identify locations where the insurgents might have relocated to prevent them from establishing new bases.

“The fact that some of them are leaving their former locations is a testimony to the successes of our operations. However, I assure you that we are not taking the situation lightly,” he said.

Continue Reading

Trending