•Reps Pledge Support For Debt Recovery Efforts
Chief Executive of the Asset Management Corporation of Nigeria (AMCON), Ahmed Lawan Kuru, has once again enjoined the National Assembly to support ongoing efforts to recover its N5.4tr outstanding debt owed it by obligors before its sunset.
Kuru, who spoke during a retreat by members of the House of Representatives Committee Chairman on Banking and Currency, which began in Lagos on Wednesday, said the corporation is making efforts to recover the huge debts, working with various stakeholders.
Ahead of its eventual sunset and winding down, he suggested that all of the remaining debts be put in one vehicle which will be sold “to anybody or firm that wants to buy at a considerable discount. At that stage maybe it would be wise to do that and then close AMCON.”
He expressed confidence this would be possible, because “there are funds all over the world that are in search of such opportunity.
“Then, the contributions into the sinking fund from the banks, NDIC and CBN would over the period of two or three years, depending on how the rates are adjusted, be gradually cleared.”
Already, Kuru said, AMCON has already hired the firm of Ernst & Young as Financial Advisers “to see what we need to do, how we need to work with the Nigerian Insurance Deposit Corporation (NDIC) and the Central Bank of Nigeria (CBN) to thinker things a little and then at certain point in time liaising with the National Assembly draw a line.”
He challenged the lawmakers to consolidate on the gains of the previous National Assembly in the interest of the Nigerian economy to recover the debt, noting that AMCON was not established as a charity.
The initial capital for setting up AMCON, he recalled, was raised through a Share Capital of N10bn, contributed equally by the Ministry of Finance (MOF) and Central Bank of Nigeria (CBN); and a 6% Bonds issued for a discounted value of N4.042tn (for a face value of N5.6tn) for the acquisition of Non-Performing Loans (NPLs). This was followed by the recapitalization of Eligible Financial Institutions (EFIs) and N500bn Debenture from the CBN at a 3% annual interest rate, payable by 2021.
Kuru said AMCON purchased 12,743 NPLs or Eligible Bank Assets worth N3.8tr from 22 Eligible Financial Institutions (EFIs) at a purchase price of N1.8tr, which are covered by various collaterals. AMCON also capitalizes three EFIs and provides financial accommodation to five. The corporation, he added had to inject a total sum of N2.2tr to 10 banks – bridged and owned banks (intervened banks) – bringing Net Asset Value (NAV) to Zero.
Of the EBAs, he continued, AMCON has so far resolved about 4,000 or 31.38%, while over 8,000 remain outstanding. Of this number, he said the corporation has mapped out about 6,000 accounts to its Asset Management Partners (AMPs), a move that has significantly improved recoveries.
Another 71 of the EBAs, Kuru added, are currently under receivership.
Also speaking at the retreat, Victor Nwokolo, chairman, House Committee on Banking and Currency, assured that the 9th National Assembly would do everything necessary to help the corporation’s recovery efforts.
Recall that AMCON with the assistance of the 8th National Assembly successfully amended the AMCON Act, which President Muhammadu Buhari signed into law earlier in the year. The amended Act provides AMCON with additional powers to deal with the obligors.
Nwokolo affirmed that the National Assembly would work to ensure that AMCON performs its function satisfactorily, and deliver on its expected, assuring that the National Assembly will continue to amend the Act until the Federal Government achieves the target for which AMCON was established.
He stressed that the National Assembly will continue to strengthen the laws of the country on enforcement, which has become critical, given that the tactics of debtors have so far constrained recovery efforts.
He recalled that public funds were used to purchase the loans that helped prevent the systemic collapse of the nation’s banking sector at the time AMCON was created.

PHOTO CAPTION: Sitting: Executive Director, Asset Management Corporation of Nigeria (AMCON), Dr. Eberechukwu Uneze (second left); Managing Director/CEO, Ahmed Kuru (sixth left); Chairman House Committee on Banking and Currency, Victor Nwokolo (middle); Deputy Chairman, Hafiz Kawu (fifth right); a member of the committee, Babangida Ibrahim (second right); and AMCON’s Group Head, Enforcement, Joshua Ikioda (AMCON), with other members of the committee, management of the corporation and facilitators at the Lagos retreat.