The Managing Director/Chief Executive Officer of the Asset Management Corporation of Nigeria, Mr Ahmed Kuru has said that it is strongly battling with its debt recovery activities.
He stated that out of a total of N4.158trn, the Corporation has so far recovered over N1.48trn.
Kuru disclosed that AMCON still has 7,902 outstanding obligors with total outstanding loan of above N3.1trn. According to him, 350 obligors alone account for over N2.053trn, which more than 70 per cent of total outstanding amount.
Kuru said these in Kaduna at the 2021 retreat of the Senate Committee on Banking Insurance and other Financial Institutions with the management of AMCON.
He stated, “All our action is geared towards settling our obligation with the CBN. After recovery and disposal, funds are paid directly into our CBN account.
“Recovery and disposal of assets have so far contributed above N1.27trn towards settling our obligation.
“The economy and the banking industry are not growing at the expected rate thereby creating a huge gap in our recovery activities.
“At the recovery rate we are currently experiencing, we may not be able to cycle out even in the next five years. Additionally, the interest rate AMCON is shouldering on its bond to the CBN is making it difficult for the recovery rate to grow.
“There is no easy way to recover money, no easy way. It is always difficult for both sides. One doing a hard job and the other responding to a hard situation.
” Let us not forget that these loans have remained uncollected for minimum of 10-15 years! Just imagine your neighbour coming for the repayment of loan given to him before your 10-year-old son was born. It is not easy.
“However, we have responsibility to collect and shall continue to pursue them within the purview of the law.”
The Chairman Senate Committee on Banking Insurance and Other Financial Institutions, Senator Uba Sani disclosed that the Senate would push and ensure that both the Nigerian Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) collaborate and contribute more to support the recovery efforts of the Asset Management Corporation of Nigeria (AMCON).
He said that the Senate remains resolute in its stance to supporting AMCON as they battle to help the country recover the huge outstanding debt in the hands of a few obligors of the Corporation.
He said the senate is in a haste to see that AMCON meets its set mandate within a reasonable timeline.
Sani explained that given the additional damage done to the Nigerian economy by the dreaded coronavirus pandemic, which crushed the global economy including Nigeria, the time has come for agencies of the Federal Government of Nigeria most especially the NDIC and CBN to work closely with AMCON.
He said, “In response to the impact of the COVID-19 on AMCON’s policies, and processes, the Senate amended the Act in 2021 by extending the tenor of the Resolution Cost Fund, and empowered AMCON to access the Special Tribunal established by the BOFIA, 2020 for dealing with financial related matters.
“This is to reposition AMCON for optimal debt, and assets recovery performance. If the bill gets the concurrence of the House of Representatives and is assented to by the President (Muhammadu Buhari), it will not only boost AMCON’s asset recovery efforts but contribute effectively to our economic growth and development.”