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Business News

₦5trn AMCON Debt: FG sets up committee to recover debt 

The Federal Government has set up an inter-agency committee for the purpose of recovering the N5 trillion debt owed AMCON.

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₦5trn AMCON Debt: FG plans to go after debtors, ₦5trn AMCON Debt: FG sets up committee to recover debt 
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The Federal Government has set up an inter-agency committee for the purpose of recovering the N5 trillion debt owed the Asset Management Corporation of Nigeria (AMCON).  

The committee was inaugurated by Vice President Yemi Osinbajo according to a statement released by his Senior Special Assistant on Media and Publicity, Laolu Akande. 

[READ MORE: AMCON sets to publish names of prominent Nigerians owing N5 trillion

The Details: Members of the committee include heads and representatives of agencies like Nigerian Financial Intelligence Unit; the ICPC; Central Bank of Nigeria (CBN); Nigeria Deposit Insurance Corporation; the Federal Ministry of Justice; AMCON, and the Economic and Financial Crimes Commission (EFCC). 

The Vice President gave the committee targets and expected to receive reports of their progress. 

“One of the terms of reference is for the committee to prepare a report, giving us a sense of what the timelines will be. About 67% of the outstanding N5 trillion debt is said to be owed by just 20 individuals/entities,” the statement said. 

[ALSO READ: UPDATED: Donald Duke reaches agreement with AMCON over N537 million debt

The backstory: Over 350 Nigerians are said to be responsible for more than 80% of the N5 trillion debt profile of AMCON. The huge debts have lingered for several years. 

  • AMCON was set-up by the Federal Government in 2010 to acquire non-performing loans from banks in order to ensure the viability of the country’s financial sector.
  • FG, through the operation of the Central Bank of Nigeria, conceptualized the idea for the establishment of a body that would prevent financial crisis in the country.
  • In October 2018, the corporation published about 20 names of corporations and agencies who hugely contributed to the debt.
  • AMCON has also threatened to publish the full list and released a documentary on prominent Nigerians who are still owing the corporation. IH
  • Recently, President Muhammadu Buhari assented to a new Act that gives AMCON more power to enforce recovery of debt from prominent Nigerians and corporate organisations.

The bottom line: In the meantime, AMCON has reiterated that if the debt is not recovered, Nigeria’s financial sector may be heading towards another era of high non-performing loans which will affect the economy. 

SSKOHN

 [READ FURTHER: AMCON boss wants courts to have debt recovery powers] 

 

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Reincarnated as a lover of stocks, Angel investors, seed funds, and anything aligned to tech or startups raising money, Joseph's work at Nairametrics involves following the money to wherever it leads. Before joining Nairametrics, he won an investigative journalism fellowship with ICIR, appeared in several national dallies, with hard-hitting opinions, features and investigative pieces. He has also engaged in content marketing and copywriting for a top e-commerce firm in Nigeria.

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Business

Hyundai and Kia to set up an assembly plants in Ghana by 2022

The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants in Ghana.

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Hyundai to invest $87 billion into producing 44 new electric vehicles, Hyundai partners Kia to invest €100m in electric vehicles 
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Few weeks after Twitter announced its plans to open its first African office in Ghana, Hyundai and Kia have also concluded plans to set up an assembly plants in Ghana by 2022. The automobile giants will join Toyota-Suzuki, Nissan, Kantanka, Volkswagen, and Sinotruck who already have plants.

Ghana’s Minister for Trade and Industry, Alan Kyerematen announced this on Twitter.

READ: This is the New Tarrif Structure For Importing Tokunbo & Brand New Cars

Pleased to announce that Hyundai & KIA are set to establish assembly plants in Ghana by the end of 2022 to join Toyota-Suzuki, Nissan, Kantanka, Volkswagen & Sinotruck. The Ghana Auto Development program = 3,600 assemblies & 6,600 manufacturing parts jobs in Ghana.

The local assembly of vehicles, 3,600 direct and indirect jobs would be created in Ghana, and the addition of components and parts manufacturing will also add about 6,600 direct and indirect jobs.”

READ: Toyota snubs Nigeria as it moves to establish assembly plants in Ghana, Ivory Coast 

Why this matters

More foreign companies are shunning Nigeria in favour of Ghana. Recently, Nairametrics reported that Amazon is set to situate its African Headquarters in South Africa, a multi-billion dollar investment that is projected to create over 20,000 jobs both directly and indirectly.

Following its move to Ghana, Twitter CEO, Jack Dorsey cited a number of human rights-related reasons for the choice of Ghana over Nigeria. Added to this are rising insecurity, stifling government regulations and the gapping infrastructural deficit bedevilling Nigeria. Consequently, our nation is steadily losing opportunities to attract foreign companies that could be very instrumental in bridging its unemployment gap which is currently over 30%.

SSKOHN

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Business

Passports: Backlog of undelievered passports to be fixed before May 31st – Minister

The government also announced the launch of a new passport application system, which would be aided by fast track services nationwide.

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The Federal Government disclosed that all backlogs of undelivered passport requests would be fixed before May 31st, and announced the launch of a new passport application system, which would be aided by fast track services nationwide.

This was disclosed by Minister of Interior, Rauf Aregbesola, in a press briefing with newsmen on Thursday.

What the Minister said

“On or before May 31st, all backlogs of undelivered requests for passports will be totally met, unless such applications have a problem,” he said.

“But before the deadline, the problematic application would be contacted, so that we know what’s wrong with the applications. Assuming there would be no problem, every successful application for a passport would be given a passport on or before May 31st,” he added.

READ: Canada invites 3,900 new PR candidates, introduces new programme to attract Nigerians

The new passport process

The Minister disclosed that the FG will launch a new passport application process which would come into effect soon.

“When you finish your application process, there would be a waiting period of six weeks to collect your passport, however, if you want an express service, there would be fast track centres nationwide, to meet requests for express passport users,” he said.

What you should know 

  • Recall Nairametrics reported last month that the Federal Government inaugurated the Nigeria Immigration Service Passport Express Centre, which is a partnership with the private sector to enable the government offer passport services to Nigerians and make passports available in a maximum of 72 hours of a successful application.
  • The FG also launched the Electronic Temporary Passport to cater for Nigerians desirous of returning home but whose national passport is not available.

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