Monday, November 22,2021 / 08.45AM / AMCON /Header Image Credit: AMCON

In another deft strategyto intensify its debt recovery drive in the country, the Asset ManagementCorporation of Nigeria (AMCON) has submitted a list containing its top 1,000obligors to the National Assembly. AMCON made the expose to members of the House of Representatives Committee on Banking and Currency at the justconcluded retreat of the committee in Lagos. 

AMCON handed the list overjust a few hours after President Muhammadu Buhari also signed into law theAsset Management Corporation of Nigeria (Amendment) Act, amending the AMCON ActNo.4, 2010. The AMCON Act provides for the extension of the tenor of theResolution Cost Fund (RCF) and grants access to the Special Tribunalestablished by the Banks and other Financial Institutions Act 2020, whichconfers on AMCON the power to among others... "to take possession, manage,foreclose or sell, transfer, assign or otherwise deal with the asset orproperty used as security for Eligible Bank Assets (EBAs), and relatedmatters."

The Chairman of the Houseof Representatives Committee on Banking and Currency, Honourable Victor Nwokolorepresenting Ika Northeast/Ika South Constituency in the 9th National Assembly,while receiving the list of recalcitrant AMCON obligors from the ManagingDirector/Chief Executive Officer of the Corporation, Mr. Ahmed Lawan Kuru saidthe Committee called for the list so that the National Assembly would knowthose that are holding the country to ransom to enable them to meet withrelevant agencies of the Federal Government on how to further deal with thedebtors to ensure that AMCON realized its mandate in the overall interest ofthe Nigeria economy. 

Nwokolo, who commended thecommitment of the Kuru-led agency, said that AMCON has been operating underharsh conditions since their establishment, which he stated has been made worseby the coming of the coronavirus (COVID-19) pandemic, which practically shuteverything down.

He said the harsh economicrealities caused by COVID-19 meant that the recovery assignment AMCON is doingfor the country had been further compounded, which is why the National Assemblyis looking at ways of further supporting the recovery drive of AMCON. 

Nwokolo, who furtherdisclosed that the National Assembly is considering punitive measures indealing with those whose names made the top 1,000 AMCON debtors’ list, however,said he was happy that President Muhammadu Buhari has just signed the AmendedAMCON Act into Law because it will help AMCON to recover the vast outstandingdebt, which will ensure that the aim of the Federal Government of Nigeria insetting up AMCON in 2010 is not defeated. 

Earlier, while presentingthe list, the AMCON boss said, "To enable AMCON to succeed in its national callto duty, AMCON solicits the continued support of this Distinguished Committee.The Judiciary must be encouraged to respect the provisions of the law thatrequire them to fast-track cases before them, issue certificates of judgementon properties, which the Corporation has no collateral and demand debtors todeposit Judgment sum before proceeding to appeal any judgement. 

Even though the judiciary,according to Kuru, has been of tremendous support, he told the NationalAssembly members that AMCON recovery presently is heavily dependent on theJudiciary in the country because AMCON has over 4,000 cases in court and iscurrently challenged with so many issues including unperfected title documentsof some properties from Eligible Financial Institutions (EFIs), which oftenprevent or elongate the completion of the sale of some of the assets; A generalmarket perception that AMCON assets are distressed, hence buyers request fordeeply discounted prices, and the basis for the pricing of EBA’s at the pointof purchase was the valuation of the assets, to mention a few. 

Kuruadded that more recently, due to the socio-economic downturn, the market valuesof assets have significantly reduced, lower than the valuation at the point ofEligible Bank Asset (EBA) purchase, making it extremely difficult to consummatesales transactions. With the support of the National Assembly and theJudiciary, Kuru argued that recovering the total current exposure on all EBAs,which stands at N4.4 trn, may be possible before the sunset period.

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