Asset Management Corporation of Nigeria (AMCON) has said that it will engage international asset tracers to locate and recover nearly N5 trillion in outstanding debts, including assets hidden offshore by recalcitrant debtors.
Gatekeepers News reports that AMCON’s managing director and chief executive officer, Gbenga Alade revealed this during a meeting with media executives in Lagos.
This 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 recovering the N5 trillion debt owed by some obligors.
AMCON on July 17, said over N1.96 trillion has been recovered from debtors since its inception, and proprietary assets worth about N651 billion have been disposed of.
Alade while speaking to journalists at the event, 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 CEO noted that these efforts have been strongly supported by President Bola Ahmed Tinubu, Central Bank of Nigeria (CBN), Federal Ministry of Finance, attorney general of the federation, and national assembly.
Alade said chairman of House Committee on Finance has pledged to publicly identify and shame debtors who are yet to repay their debts.
He also announced plans to organise a conference with senior officials from CBN, relevant ministries, banks, and judiciary to address the ongoing challenges posed by non-performing loans in the country.
The CEO listed four key sectors 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 revealed that the corporation has achieved remarkable results in two of those assets in less than five months.
He said, “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.”
The CEO reiterated 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.
Alade further said that addressing the power issues would greatly improve the overall business environment.
Alade said AMCON is also making efforts to revive dormant assets in telecommunications sector and bring them back into operation.
He said, “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.”
Alade reiterated the corporation’s commitment to resolving non-performing loans and stabilising Nigerian financial system.
He noted that by engaging international asset tracers and focusing on key sectors, AMCON aims to recover outstanding debts and contribute to overall economic growth and development of the nation.
