Banks: Tension As AMCON Moves To Shame 8000 Chronic Debtors

By Tosin Olatokunbo

Chronic banks debtors have besieged the offices of the Asset Management Corporation of Nigeria, AMCON to appeal to the management not to disgrace them by making their names public, The Source magazine has learnt.

The development followed the decision of AMCON to publish names of debtors owing banks over N4 . The debt recovery agency said it will now go ahead to publish close to 8000 names who bank debtors.

The corporation spokesman Jude Nwauzor, said the action became necessary after debtors refused to take advantage of the 30 days window provided to liquidate their debts.

The action is in furtherance of its powers to recover debt according to the extant laws covering debt recovery. Last year, the agency gave debtors 30 days ultimatum to pay their debt failure which it will be forced to make their identities public.

The ultimatum expired today January 5, 2022, and the magazine learnt that the many obligators have not made any serious effort to liquidate their debt.

“Our offices have suddenly become a beehive of activities to the powerful in the country who until now have ignored our directive to them to pay their debts. They are begging the agency not to shame them as this will affect their status in the business community and bring them to disrepute among friends and families,” a top source in AMCON said on Wednesday.

Recall that the Senate, last April passed the AMCON amendment bill which seeks to strengthen the agency in the area of loan recovery. The bill, among other things, conferred on the agency power to take possession, manage or sell all properties traced to debtors, and assets used as collateral by debtors.

Nwauzor said the last option for the agency is to publish the names of the debtors after they failed in their obligations, in line with powers conferred on it by the National Assembly.

He said the agency has “taken the decision to publish already. The decision has been taken already. It is a directive from the National Assembly,” he said.

“As a responsible corporate citizen, this was why we published an advertorial to warn all the entities concerned that their names will be published at the expiration of the ultimatum.

“The one-month grace period will be expiring on January 5, 2021.”

Ahmed Kuru, AMCON managing director said last year that it recovered N1.48 trillion from bank debtors, noting that the process of recovering loans in the country is slow, and that it will take a long period for the agency to recover huge debts owed by debtors who have failed to service their loans.

Kuru said, “at the recovery rate we are currently experiencing, we may not be able to cycle out even in the next five years. Additionally, the interest rate AMCON is shouldering on its bond to the CBN is making it difficult for the recovery rate to grow.

“There is no easy way to recover money, no easy way. It is always difficult for both sides. One doing a hard job and the other responding to a hard situation.

“Let us not forget that these loans have remained uncollected for minimum of 10-15 years. However, we have responsibility to collect and shall continue to pursue them within the purview of the law,” he said.