I read an article on Thisday recently about how AMCON can use its powers, as the major lender to the Aviation Industry, to make the industry fair better in terms of asset quality, operations and return to profitability. They also mention that AMCON can even reorganize the ownership structure of this airlines and even make them add new shareholders. After pausing to digest the possibility of this as regards the provisions of the Companies and Allied Matters Act (CAMA), my head almost popped out of my body as I got to the part of the article where the Aviation Lawyer interviewed was quoted as saying “Let the truth be told, AMCON owns all the airlines in Nigeria now”. Is that possible?? Is that Nationalization??
Well, I have read the Guidelines for the N300b Intervention Fund meant for the Power and Aviation Industry and nowhere did I see a mention of AMCON or indeed any participating bank investing in the equity of the participating airlines or even stipulating conditions that warrant the shareholders of the airlines giving up powers relating to capital structure. I also do know that lenders do not have powers in Nigerian law to decide the ownership structure of airlines or any company for that matter. They could influence operations or managerial structure of the company depending on the terms of the loans, but this done in extreme circumstances. For example, if the airline is starring at bankruptcy. But I do not think that is the case here making even that impossible to conjecture.
However, if the AMCON Loan has been converted to shares in the companies then they can as shareholders use their status as shareholders to influence the ownership structure and even operational and management structure of the airline. Since that is not the case (going by the article) I do not agree with this assertion. This is an epic case of misstatement of the facts in my opinion!!
I RATE THIS A FAIL ON FIGURATEIT