AMCON to engage international asset tracers to recover N5trn debt

The Asset Management Corporation of Nigeria (AMCON) says there are plans to engage international asset tracers to locate and recover nearly N5 trillion in outstanding debts, including assets hidden offshore by recalcitrant debtors.

Gbenga Alade, AMCON’s managing director and chief executive officer, spoke on Monday at a meeting with media executives in Lagos.

The event comes more than a month after the house of representatives committee on banking asked the corporation to adopt best practices in asset recovery, management, transparency, accountability and efficiency in the quest to recover the N5 trillion debt owed by some obligors.

On July 17, the AMCON had said over N1.96 trillion has been recovered from debtors since its inception, adding that proprietary assets worth about N651 billion have also been disposed of.

Speaking to journalist at the event, Alade said since the current management took over about five months ago, they have successfully recovered approximately N100 billion from several high-profile debtors and also revised the sale of some assets.

The AMCON CEO said these efforts have been strongly supported by President Bola Tinubu, the Central Bank of Nigeria (CBN), the federal ministry of finance, the attorney general of the federation, and the national assembly.

He said the chairman of the house committee on finance has pledged to publicly identify and shame debtors who are yet to repay their debts.

Alade also announced plans to organise a conference with senior officials from the CBN, relevant ministries, banks, and the judiciary to address the ongoing challenges posed by non-performing loans in the country.

‘AMCON TO RESOLVE ISSUES IN KEY SECTORS’

The CEO highlighted four key sectors the AMCON intends to focus on, including oil and gas, power, telecommunications, and aviation.

He expressed confidence that resolving issues surrounding assets in the oil and gas sector would significantly boost production, generate foreign exchange (FX) and create employment opportunities for Nigerians.

Alade said the corporation has achieved remarkable results in two of those 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,” he said.

“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.”

The CEO emphasised the potential impact of resolving Nigeria’s power challenges, adding that some banks with around 400 branches across the country spend as much as N500 billion annually on diesel for their generators.

Addressing these power issues, he said, would greatly improve the overall business environment.

Alade said AMCON is also making efforts to revive dormant assets in the telecommunications sector 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,” he added.

The AMCON boss reiterated the corporation’s commitment to resolving non-performing loans and stabilising the Nigerian financial system.

Alade said 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.