The Managing Director, of the Asset Management Corporation of Nigeria, AMCON, Ahmed Kuru, has disclosed that the sum of N1.6 trillion has so far been recovered from commercial bank debtors.
Kuru made the revelation in the United Kingdom during the annual training for judges, saying the recovered assets include cash and sale from assets seized from debtors.
The government agency was set up by an Act of the National Assembly in July 2010 in the wake of the global financial meltdown of 2008-2010 and the systemic stress that swept through Nigeria’s financial system, with an initial intended lifespan of 10 years to buy the bad loans of the banks and avert bank failures.
According to a statement signed by Jude Nwauzor, Head of Corporate Communications Department , Kuru, stated that he appreciates the opportunity granted the AMCOM to participate in the event, adding that the platform enabled it to present, at a global stage, what the agency is doing and the challenges facing the company, noting that feedbacks from the forum “helps AMCON to perform better.”
The statement reads: “My Lords, distinguished ladies, and gentlemen, with the help of the Judiciary AMCON has been able to make notable progress especially in enforcement. Granting of Exparte Orders as well as Orders to attach traced assets have compelled most recalcitrant obligors of AMCON to come to the negotiation table. To date the corporation has made recoveries of about N1.6 trillion, which include recoveries in cash and in sale of assets.
“As Nigeria struggles with huge debt burden, so is AMCON struggling with very recalcitrant obligors who have mastered the act of clinging to the technicalities, rather than settle their established obligations.
“We have noticed from experience however that some recalcitrant obligors have found new tricks of colluding with a third party who would present himself as the owner of the traced assets and file for the Order of Court to be set aside. We urge Your Lordships to kindly be wary of these characters.
“We cannot over flog the important role the Judiciary play in National Development and as such Your Lordships remain vital to the success of AMCON. We still have many cases pending with the various divisions of the Courts. “These matters are very vital to the success of the Corporation and particularly as we know that if we are unable to resolve them, it becomes a burden on our country’s debt profile and taxpayer’s money.
“Despite the achievements made, with the tremendous support of Your Lordships, we are still strongly battling with our debt recovery activities. It is very difficult, particularly given our peculiar situation.
“Out of total of N4.664 trillion we have so far recovered about N1.6 trillion in the more than 10 years of our existence. We still have a long way to go! About 350 obligors account for N3.957 trillion, which is above 84 per cent of total outstanding amount.
“Our debt is in the balance sheet of the Central Bank of Nigeria (CBN), and therefore a threat to the economy. After recovery and disposal, funds are paid directly into our CBN account.
“Recovery and disposal of assets have so far contributed about N1.6 trillion towards settling our obligation. Accordingly, we would not get tired of appealing to Your Lordships for more understanding and collaboration towards the achievement of this National assignment,” Kuru said.”
