- Reps Urges Efficiency To Recover N5tr Outstanding Debt
Caption: Members of the House of Representatives Committee on Banking and Other Ancillary Institutions with the Executive Management and other Senior staff of AMCON in a group photograph after the oversight visit at AMCON in Abuja…Tuesday
Chief Executive of the Asset Management Corporation of Nigeria (AMCON), Gbenga Alade, on Tuesday said it has repaid a total of N2.929tr to the Central Bank of Nigeria (CBN) in the 10 years between 2013 and 2023 in the discharge of its core function of recovering debts acquired from the nation’s banks in the aftermath of the 2008 financial crisis.
Alade, who spoke while welcoming members of the House of Representatives Committee on Banking and Other Ancillary Institutions on the oversight function to his office, said the amount includes contributions to the Sinking Fund by other Deposit Money Banks (DMBs), and AMCON recoveries.
A statement by Jude Nwauzor, its Head, Corporate Communications Department, quoted Alade as saying AMCON has so far recovered a total of N1.96tr, 43% of which represents cash, while sale of bridged banks contributed 13%, and sale of proprietary shares 11%. Others include clawback and repurchases 9%, sale of property assets and rentals 9%, investment income 7%, and others, about 7%.
Alade also noted that “AMCON, since its inception, has played a pivotal role in stabilizing the Nigerian financial system. In the aftermath of the 2009 global economic crisis, AMCON was established to address the non-performing loan crisis that threatened the stability of our banking sector. Today, as we reflect on the journey thus far, we acknowledge the significant strides made by AMCON in fulfilling its mandate. This visit aims to ensure that AMCON operates within the legal framework established by the National Assembly and achieves its objectives effectively and efficiently.”
He highlighted the several battles the corporation had to fight, noting that despite the shaky start-off model, the corporation achieved such considerable recoveries with the support of the National Assembl.
Accompanied by his Executive Directors – Dr Aminu Mukhtar Dan’amu, and Adeshola Lamidi among other senior staff of the Corporation, the MD/CEO specifically said AMCON has disposed of proprietary assets worth about N651bn from inception to date,
Reacting, the committee chairman, Hon. Eze Nwachukwu Eze, charged the corporation to be innovative and adopt best practices if it must recover the total of almost N5tr outstanding debt owed by some obligors.
He also called for transparency and accountability in asset recovery, if it must continue to enjoy the necessary support through appropriate legislative frameworks and oversight functions to enable the corporation fulfill its mandate effectively.
The committee, he said, recognizes “that AMCON cannot achieve its mandate in isolation. Collaboration with the National Assembly, which this Committee represents, other financial institutions, regulatory bodies, and other stakeholders is crucial. As representatives of the people, we are committed to fostering an enabling environment that supports AMCON’s efforts and promotes the stability and growth of our financial system.
“As we navigate through the current economic landscape, marked by global uncertainties, and domestic challenges, the role of AMCON becomes even more critical. Resolving non-performing loans, recovering debts, and managing acquired assets are key to ensuring the stability and resilience of our banking sector. It is essential that AMCON remains steadfast in its mission, adopting innovative strategies and leveraging technology to enhance its operations.
