In a bold move to recover outstanding debts of nearly N5 trillion, the Asset Management Corporation of Nigeria (AMCON) has announced plans to engage international asset tracers to locate and recover assets hidden by recalcitrant debtors offshore including those masqueraded under Special Purpose Vehicles (SPVs).
This decision was revealed by the Managing Director/Chief Executive Officer, Mr. Gbenga Alade, during a meeting with senior members of the print and online media in Lagos on Monday.
Alade stated that since the new management took over about five months ago, they have successfully collected approximately N100 billion from several high-profile debtors and revised the sale of some assets.
He emphasized that the organization has been receiving strong support from President Bola Ahmed Tinubu, the Central Bank Governor, the Federal Ministry of Finance, the Attorney General of the Federation, and the National Assembly in their efforts to recover debts transferred by banks to AMCON during the different phases of Eligible Bank Asset (EBA) acquisition.
Furthermore, the CEO mentioned that the Chairman of the House Committee on Finance has pledged to name and shame obligors who have yet to repay their debts at a major stakeholders’ conference that would hold before the end of the year. He revealed plans to organize a conference where senior officials from the Central Bank of Nigeria (CBN), relevant ministries, banks, and the judiciary will be invited to discuss the challenges posed by non-performing loans in the country.
Alade highlighted four key sectors that the new management has chosen to focus on. The include: oil and gas, power, telecommunications, and aviation.
He expressed confidence that resolving issues surrounding assets in the oil and gas sector will boost production, generate more foreign exchange, and create employment opportunities for citizens. The CEO noted that they have achieved remarkable results in two of these assets in less than five months.
In the power sector, AMCON has made significant progress in one of the biggest distribution companies and an abandoned power project in Kaduna.
A memorandum of understanding has been signed, and operations are expected to commence within the next six months. The corporation is also working on other assets in the power sector, particularly in Aba, as reliable power supply has become a major concern for small, medium, and large-scale enterprises.
Alade emphasized the potential impact of addressing power challenges in Nigeria, stating that some banks with approximately 400 branches across the country spend as much as N500 billion annually on diesel for their generators. He believes that tackling the power sector will significantly improve the overall business environment.
AMCON is also working on assets in the telecommunications sector, aiming to revive dormant assets and bring them back into operation. In the aviation sector, the corporation is addressing issues involving two airlines, with the hope of increasing Arik Airline’s fleet from three to eight aircraft by March 2025, which could help reduce airfares in the local aviation industry.
The Asset Management Corporation of Nigeria remains committed to its mandate of resolving non-performing loans and stabilizing the Nigerian financial system. By engaging international asset tracers and focusing on key sectors, AMCON aims to recover outstanding debts and contribute to the overall economic growth and development of the country.