Minister of Finance, Zainab Ahmed has disclosed that Asset Management Corporation of Nigeria (AMCON) has recovered N1 trillion from debtors since its establishment.
Ahmed said since AMCON’s commencement of operations, not less than N1 trillion had been recovered from debtors of banks whose loans were taken over by the corporation.
While inaugurating the board of AMCON under the chairmanship of Muiz Banire (SAN), Ahmed said out of the recovered amount, cash accounted for 60 per cent, while non-cash assets such as properties and equity securities accounted for the balance of 40 per cent.
According to the Minister, AMCON’s repayment of its indebtedness to Central Bank of Nigeria (CBN) was over N1 trillion, while its total debt obligation to the CBN currently stood in excess of N5 trillion.
“AMCON has been able to recover over N1tn since inception to the 2018 year end.
“AMCON’s total debt obligation to the CBN is currently in excess of N5 trillion. It is evident that the Federal Government cannot afford to write off this debt in the short term hence, our moral obligation to pursue obligors and recover the debts owed.” Ahmed was quoted.
Following the exposure of 105 delinquent debtors, AMCON was preparing to release another list of debtors. AMCON’s Head of Corporate Communications Department, Jude Nwauzo made this known.
AMCON has decided to expose the debtors following their failure to meet their debt obligations after several peaceful engagements.
The Asset Management Corporation of Nigeria was established in 2010 to buy non-performing loans and rescue lenders after the industry was threatened with collapse.
AMCON was created to be a key stabilising and re-vitalising tool aimed at reviving the financial system by efficiently resolving the non-performing loan assets of banks in the country.
The agency is also billed to wound down by 2020, according to the Act establishing it.