AMCON says bank debtors damaged Nigerian economy

… foreign asset tracers to locate obligors hidden assets

…Arik Air returning to profitability

Gbenga Alade, Managing Director and Chief Executive Officer, Asset Management Corporation of Nigeria (AMCON) has said that obligors of the Corporation damaged the Nigerian economy because they never intended to repay the loans they borrowed from various banks.

He stated this at an interactive session with media executives in Lagos on Thursday, remarking that, “Unfortunately for them, we were told of this trend before we assumed office. So, we are not deterred by these antics. Our appointment is a call to serve the motherland, and we will deliver that with all humility and sincerity of purpose”.

“Dealing with AMCON’s recalcitrant debtors is not easy, but dealing with such debtors who are in government, holding very high positions across different decision-making portfolios in governance in the country, is one of the most challenging tasks that I have ever faced in my career…”, Alade said.

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According to him, “AMCON, under our Executive Management with my humble self in the saddle, will continue to go about our recovery mandate with the fear of God, love of country, and will follow the rule of law. Please, no matter the skewed narration, these obligors come to give to you in your different newsrooms; kindly take it with a pinch of salt.

“If you recall, the last time we met, we told you there was a ban on asset sales. But today, with the Board is now in place, so, the sale of assets by AMCON has been lifted, and consequently, we have sold some high-profile assets running into several billions of Naira.”

He said Arik Air (in Receivership) is returning to profitability, and our engagements with AfreximBank are yielding positive results. “Aero Contractors is also delivering massive value in the country. As of today, Aero is the only airline in Nigeria with an MRO, and that can only be the result of effective and prudent management”.

He also said that the divestment of IBEDC is almost completed and that AMCON would soon hand over the company to the preferred bidder. Alade added that even as the current leadership of AMCON has stretched the bidders to get the best and most realistic value, there are still some distractions out there.

In a bid to ramp up recoveries, Alade said, “We have also commissioned some foreign asset tracers who will help us locate where some of these obligors have hidden their assets across the globe.

The CEO said, AMCON’s recovery efforts have been strongly supported by President Bola Ahmed Tinubu, the judiciary, the Central Bank of Nigeria, the Federal Ministry of Finance and the Attorney General of the Federation, the EFCC, the Police, the ICPC, the National Assembly, and a host of other sister agencies of the government.

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AMCON was set up with the legal mandate to manage Non-Performing Loans (NPLs) of banks by offloading the toxic assets from their books and injecting fresh funds, aligning with corporate insolvency restructuring principles.

With this mechanism, bank depositors retain their deposits because they have confidence in the financial system, assuring banks’ ability to honour their obligations. AMCON then manages the acquired Eligible Bank Assets (EBAs) preparatory to their disposal.