The Asset Management Corporation of Nigeria (AMCON) has called on Nigerian senators and the judiciary to bolster its debt recovery efforts, emphasising the importance of their support to stabilize the country’s economy. AMCON, tasked with resolving Nigeria’s non-performing loan (NPL) crisis, has recovered N2.011 trillion to date and disposed of assets worth N651 billion since its inception.
However, it still grapples with a staggering N5 trillion in outstanding debt, underscoring the urgency of its appeal.
Speaking at the 2024 Stakeholders Retreat with the theme: “Transitioning Beyond AMCON: Navigating the Path to Sustainable Financial Stability,” AMCON’s Managing Director, Gbenga Alade, highlighted the need for legislative and judicial backing. He specifically urged the judiciary to implement the amended AMCON Act rigorously, which mandates speedy adjudication of cases within 60 to 90 days and requires debtors to deposit the judgment sum before appealing. This, he noted, would significantly enhance AMCON’s efficiency in recovering public funds tied up in bad loans.
Alade also appealed to government agencies to refrain from engaging contractors indebted to AMCON without first clearing with the corporation. “We must not allow a few individuals to squander taxpayers’ hard-earned money,” he stated.
He credited AMCON’s recoveries to the National Assembly’s support, which has enabled the corporation to stabilize businesses, save jobs, and restore confidence in the financial sector.
“On our path as a Corporation, we have resolved to continue to pursue the recoveries of these humongous debts owed to our Nation by some few individuals. These individuals prefer to remain in Courts than settle their debt. They believe that with Corporation’s sunset date drawing closer, they would walk away free, and the debt will be added to already overloaded domestic debt profile of the Nation.
“We will not allow this to happen because taxpayers monies may be used to repay these debts.
As a matter of fact, only about 350 obligors make up more than 70 percent of the entire debt profile of the Corporation. Some of these obligors still fly private jets, get government contracts and continue to live lavishly in society, “he reiterated.
The retreat provided an opportunity for lawmakers to reflect on AMCON’s role in rescuing Nigeria’s banking industry from the adverse effects of NPLs.
Senator Mukhail Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, commended AMCON for injecting liquidity into the banking system through the purchase of Eligible Bank Assets (EBA). This intervention, he said, has not only stabilised the sector but also preserved public trust in financial institutions.
However, Senator Abiru acknowledged that AMCON’s mandate was never intended to be indefinite. The 2021 AMCON Amendment Act extended its tenure by five years, allowing a possible extension by a National Assembly resolution. Yet, with the corporation expected to wind down by 2026, the senator emphasised the need for innovative strategies to tackle the remaining debt.
Drawing parallels with the Korea Asset Management Company (KAMCO), he suggested exploring alternative models to manage unresolved loans effectively.
Despite AMCON’s significant recoveries, challenges persist. Only 44 percent of recoveries have been in cash, while the remainder comprises asset sales, clawbacks, and other non-cash methods. Alade reaffirmed AMCON’s commitment to its mandate but stressed that collaboration across government institutions is vital to achieving its objectives.
The retreat also served as a platform to discuss the transition beyond AMCON’s current structure. Stakeholders deliberated on sustainable solutions to ensure financial stability post-AMCON, recognizing that the corporation’s eventual exit should not jeopardize the progress made in Nigeria’s financial sector. As the 2026 deadline approaches, the focus shifts to devising long-term strategies to address the NPL crisis and solidify the country’s economic foundation.
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