The Asset Management Corporation of Nigeria (AMCON) appears to have abandoned plans for NG Eagle (Lagos), having re-assigned the startup's managing director.

The NG Eagle project came to a standstill after certification was suspended - at the time nearing completion - on orders of the Nigerian Senate in mid-October 2021.

The sticking point had been AMCON's NGN235 billion naira (USD572 million) debt, including its NGN200 billion (USD487 million) exposure to Arik Air (W3, Lagos) - under AMCON's receivership - and NGN35 billion owed to various civil aviation agencies. The Nigerian National Assembly in February 2022 declared NG Eagle would not be certified until Arik Air paid back its outstanding debt of NGN10.8 billion (USD24.8 million).

The project's cancellation reportedly cost AMCON an estimated NGN22 billion (USD53 million) on three grounded B737-700s (former Arik Air aircraft), insurance premiums, staff salaries, and other operating expenses.

In the latest development, AMCON, in a statement, said it was re-assigning NG Eagle Managing Director Ado Sanusi to Aero Contractors due to the startup's failure to take off. Sanusi, for his part, said he was pleased to return to Aero Contractors (N2, Lagos) to continue the job of repositioning the airline.

Aero Contractors has been in receivership under AMCON since 2016 and is undergoing restructuring with hopes of returning to operations via a contract with virtual carrier UmzaXpress.