A total of ₦731 billion worth of bank loans was recovered by the Asset Management Corporation of Nigeria (AMCON) in seven years, since its inception.
AMCON’s Managing Director/Chief Executive Director, Mr Ahmed Kuru, made this known during the Corporation’s recently-held asset sales strategy retreat. According to him, recovered properties accounted for about 35% of the total recovered sum.
The AMCON boss, who was represented at the event by an Executive Director, also disclosed that the Corporation recently restructured its processes in readiness for more positive outcomes, even as it rejigs its asset sales strategy and facilitate speedy disposal.
Part of the strategies undertaken by AMCON towards the expansion of its scope of sale of assets was to engage qualified professionals in the real estate sector, legal experts, and regulatory stakeholders. AMCON also ensured the cross-fertilisation of ideas on the right steps to take towards ensuring that the recovered assets are properly sold off on time.
“As you may be aware, one of the key objectives of AMCON is to obtain the best achievable financial returns for all assets acquired. Following the acquisition of eligible bank assets, AMCON is now saddled with the responsibility for recovering the bad loans, either through cash repayments or asset forfeitures/foreclosures.
“In fact, the bulk of recoveries, which have been recorded at AMCON, are in form of asset recoveries. Considering the fact that AMCON’s obligations to the Central Bank of Nigeria (CBN) is in the form of cash repayment, AMCON, therefore, has the responsibility of converting the assets into cash in order to meet the repayment obligations.” – Kuru
But with 35% of all recoveries comprised of physical properties, AMCON said it is finding it rather difficult to sell off these assets at rates that are favourable. This challenge is due to such factors as inflation.
It is, therefore, in view of this challenge faced that Kuru said “we have realised that we cannot continue to do business as usual; it has, therefore, become imperative for us to seek more innovative ways of converting our huge portfolio of assets into liquid cash as quickly as possible.”
Also speaking during the retreat was Dr Eberechukwu Uneze, an Executive Director in charge of asset management at AMCON. He stressed the need for collaborative efforts between AMCON and professionals/experts as well as government agencies in order to successfully dispose off the stockpile of assets that are currently in AMCON’s possession.
AMCON was established in 2010 by an Act, and charged with the main responsibility of reviving the Nigerian financial system through the efficient resolution of “the non-performing loan assets of banks in the Nigerian economy.”
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That’s the problem right there. Buy an asset one has no business buying and finding it difficult to sell @ par or premium. Now its saddle with an asset while the banks it bought the asset from balance sheet is whole. public insititution are not in the business of making profit there is no public good/outcome to Nigerians only the banks. mopping up private investment gone wrong is a bad core/mission statement. Nigeria needs a bankruptcy court at the federal level dedicated solely to fix private and public debts. Amcon is not working and will only work at a loss.