Business
AMCON in desperate mode to recover debts
The Asset Management Company of Nigeria (AMCON) has taken its debt recovery drive to another level.
National Daily gathered that as the tenure of the bank slowly winds down, it has come under increasing pressure to recover all loans. The bulk of recoveries made, consist of properties. These assets seized, have been a bit difficult to offload due to the weak economy.
AMCON is also billed to be wound down by 2020, according to the Act bringing it into power.
It has therefore decided without notice to publish a detailed list of all debtors (and their directors where applicable) that have failed and/or refused to reach settlement resolution with the corporation.
The measure may have little or no effect, except for individuals eyeing the forthcoming elections. Commercial banks in the country routinely publish list of delinquent debtors. An earlier list published June, 2016, achieved very little.
Progress on other assets has also been slow. Aero contractors and Arik Air which were taken over in 2013 and 2017 respectively, are yet to get buyers. A move by Ethiopian Air to purchase Arik fizzled when AMCON denied being in the know.
In 2011, the corporation acquired 12,537 non-performing loans worth N1.7 trillion from 22 financial institutions, following the 2009 banking crisis. Banks in the country where hit by a double whammy of oil and gas loans gone bad, as well as margin loans to the capital market.
AMCON made a loss of N16.4 billion in its full year ended December, 2017, but expects to turn a profit this year. It has recovered a total of N731 billion worth of loans since inception.
The Asset Management Corporation of Nigeria (AMCON) was established on the 19th July, 2010, when then President Goodluck Jonathan signed the AMCON Act into law.
It is owned by the Federal Government but its shares are held by the Central Bank of Nigeria (CBN) and the Ministry of Finance in trust.
