The Asset Management Corporation of Nigeria (AMCON) has said that a weak economy is hindering its efforts to recover billions of dollars of loans and other assets it took on five years ago to rescue banks, according to Bloomberg.
The Chief Executive Officer; Ahmed Kuru told reporters in Lagos that Companies that owe money to Amcon are struggling to repay their debts, while the value of its property assets is dropping. This situation will make it more difficult for Amcon to pay off its N5.6 trillion ($28 billion) liabilities, including bonds held by the central bank, he said.
“The price of crude oil below $40 per barrel impacts the government’s ability to honor its obligations to those that are owing us,” Kuru said.
“The impairment of oil assets we took over is another problem. Real-estate assets are challenged as the economy is going down.”
The issue of recovering loans has been a thorn in the flesh of Amcon who have struggled to recover loans. In May Amcon reported that it had only recovered 57% of bad debt in 5 years.