The Asset Management Corporation of Nigeria (AMCON) is considering merging Arik Air and Aero Contractors into a national carrier due to their overwhelming debts.
AMCON’s CEO, Gbenga Alade, revealed this during an interactive session, expressing concerns over the airlines’ financial instability.
The proposal was previously rejected by the former aviation minister, but AMCON plans to present it again as a solution to the airlines’ financial woes.
Alade disclosed that both airlines owe significant amounts, with Arik Air owing $52 million to Afreximbank.
Negotiations are ongoing to prevent the airline’s collapse, with plans to increase its operational fleet.
He also highlighted AMCON’s broader efforts to recover nearly N5 trillion in outstanding debts, with support from various government bodies and plans to engage international asset tracers.
AMCON has made strides in asset recovery, particularly in the power and telecommunications sectors, aiming to revive dormant assets.
Alade emphasized the importance of addressing power sector challenges to improve the business environment and reduce operational costs for businesses in Nigeria.