Managing Director and CEO of Asset Management Corporation of Nigeria (AMCON), Mr. Gbenga Alade, at the weekend disclosed that over 3000 court cases are stalling its debt recovery efforts.
After 14 years of existence, the debt recovery agency of the federal government is still pursuing over N5 Trillion loans.
Speaking at the Stakeholders’ Retreat with the Senate Committee on Banking, Insurance, and other Financial Institutions, Alade urged the judiciary to expedite the adjudication of AMCON-related cases within the 60 to 90-day timeframe stipulated in the AMCON Act.
According to him, judicial support is crucial in addressing AMCON’s extensive backlog of over 3,000 cases.
He said, “We have more than 3,000 cases in various courts around the country; from the court of first instance to the Supreme Court. We have continued to deepen our interaction with the leadership of these courts.
“Our hope is that AMCON cases would be adjudicated within the time limit enshrined in the AMCON Act.”
He stated that the Senators have a role to play in raising awareness among government agencies about the risks associated with engaging with debtors (contractors) who have outstanding liabilities with AMCON.
The MD added that in the last 14 years, AMCON recovered approximately N2.011 trillion comprising 44 per cent in cash recoveries and 56 per cent from sale of proprietary assets, clawback, repurchases, among others.
He added that the corporation has successfully disposed of assets valued at around N651 billion since its inception, saying this has contributed to job preservation and business rescues across Nigeria.
Alade added that AMCON paid N2.929 Trillion to the Central Bank of Nigeria (CBN) between 2013 and 2023, including contributions to the Sinking Fund by other Deposit Banks and AMCON recoveries.
As the extended tenure of AMCON elapses in 2026, Alade noted that a premature closure of AMCON could lead to a resurgence of non-performing loans and potential bank failures. “One wonders if any lessons were learned from activities of the past,” he said.
Chairman of the Senate Committee on Banking, Insurance, and other Financial Institutions, Senator Adetokunbo Abiru said efforts must be made to recover the tax payers’ money.
He said: “Admittedly, the setting up of AMCON has succeeded, to a large extent, in not only stabilizing the banking industry given that the purchase of Eligible Banks Assets (EBA) reinjected the much-needed liquidity into the banking system, but also helped in restoring confidence in the financial sector.”
“I am aware that the AMCON Amendment Act of 2021 extended the life of AMCON for another five years although it provides that the current tenor may be extended by a resolution of the National Assembly. So, we now stand at a pivotal moment where we must transition beyond AMCON as it is nearly impossible for the Corporation to recover substantial loans by 2026 when it is expected to wind down.
“Regrettably, despite 14 years of its existence, AMCON still carries massive loans in her portfolio put at circa N5 trillion with a significant portion of the AMCON debt due to the CBN. So, I expect that at this retreat, we should come up with more effective options for dealing with outstanding loans beyond the strategies already adopted, just like the Korea Asset Management Company (KAMCO).”
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