Nairametrics
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Ranking & Reviews
  • Markets
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
  • Industries
    • Company News
    • Consumer Goods
    • Content Partners
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
  • Economy
    • Macro-Economic News
    • Get Data
  • General News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home General News

N4.5 trillion non-performing loans: AMCON raises concerns over banks’ debt 

Joseph Olaoluwa by Joseph Olaoluwa
September 16, 2019
in General News
N4.5 trillion non-performing loans: AMCON raises concerns over banks’ debt , Heads could roll as AMCON probes Power Ministry over N1.68 billion payment to UK firm , AMCON Urged to declare Public Officials on Debtor list bankrupt 
Share on FacebookShare on TwitterShare on Linkedin

The issue of non-performing loans has been a source of worry for the Asset Management Corporation of Nigeria (AMCON) as the corporation has expressed concerns over the inability of deposit money banks to recover these debts. 

According to the Managing Director of AMCON, Ahmed Kuru said the total debt owed the corporation was N4.5 trillion. He said this at an investiture of Governing Council/induction of members of the Chartered Institute of Loans and Risk Management of Nigeria. 

[READ MORE: CBN goes tough over N777 billion non-performing loans to oil marketers] 

The debt cannot be ignored: Karu said the debt was half of Nigeria’s annual budget and could be higher than the annual budget of countries like Rwanda and Kenya. Therefore, it could not be written off. 

He blamed the banks for their poor risk assessment criteria as they continued to grant loans without assessing the risks associated with them. He said the corporation had made giant strides in recovering debts and driving down the ratio of chronic debtors to 5% ever since taking toxic assets from the banking sector.  

 “AMCON was created because of the crisis in the financial sector. We still have about N4.5 trillion debt uncollected and this is because some of our loans and risk management crisis were compromised. N4.5 trillion is higher than the budget of Rwanda, it is higher than the budget of Kenya. This induction of risk managers is a call to duty. Building up toxic assets is a combination of events. Let’s be above board and stand on professionalism and integrity.”

Harriet Akubuiro, President of the Governing Council of the institute, advocated for the importance of the country to take the issue of risk management very seriously. She said the institute would not relent in keeping the public abreast on the importance of sound risk management practices in Nigeria.   

“Risk management concept is a new development in Nigeria, and we need to know how to manage risks. The world is evolving, and changes are happening every day. There is no business without risk and one of the objectives of the institute is to perform our advocacy role on financial matters regarding risk management in the economy.”

What this means: Non-performing loans are a burden for both lenders and borrowers. According to a Nairametrics report, NPLs reduce credit availability, distort the allocation of credit, negatively affect market confidence, and slow economic growth. 

[READ FURTHER: Banks’ non-performing loans hit N2.36 trillion] 

Related

Tags: Ahmed KuruAMCON NewsChartered Institute of Loans and Risk Management of NigeriaHarriet AkubuiroNon-performing loansOn the Money

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Access Bank
Bankers Committee
Flowmono

Bfpeer
Mega Millions
FCMB
Ikeja Electrics
Zenith CEX
Kwakol Markets
First bank





    Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

    Recent News

    • NDLEA apprehends suspected drug baroness in Delta State
    • Why investments in Nigerian economy is declining – Atedo Peterside
    • Terra Founder, Do Kwon proposes Terra Hard Fork to save network

    Follow us on social media:

    Recent News

    NDLEA apprehends suspected drug baroness in Delta State

    NDLEA apprehends suspected drug baroness in Delta State

    May 17, 2022
    Atedo Peterside resigns as Chairman of Cadbury Nigeria’s board of directors 

    Why investments in Nigerian economy is declining – Atedo Peterside

    May 17, 2022
    • ABOUT US
    • CONTACT US
    • PRODUCTS
    • ANDROID APP
    • iOS APP
    • DISCLAIMER
    • CAREERS
    • PRIVACY POLICY

    © 2022 Nairametrics

    No Result
    View All Result
    • Home
    • Exclusives
      • Analysis
      • Corporate Stories
      • Interviews
      • Investigations
      • Ranking & Reviews
    • Markets
      • Cryptos
      • Commodities
      • Equities
        • Dividends
        • Stock Market
      • Fixed Income
      • Market Views
    • Industries
      • Company News
      • Consumer Goods
      • Content Partners
      • Corporate deals
      • Corporate Press Releases
      • Energy
      • Entertainment
      • Financial Services
      • Hospitality & Travel
      • Manufacturing
    • Economy
      • Macro-Economic News
      • Get Data
    • General News
    • Financial Literacy
      • Career tips
      • Personal Finance
    • Lifestyle
      • Billionaire Watch
      • Profiles
    • Opinions
      • Blurb
      • Op-Eds

    © 2022 Nairametrics

    Social Media Auto Publish Powered By : XYZScripts.com