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AMCON Recovers N682bn Bad Debts in Six Years – CEO

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AMCON
  • AMCON Recovers N682bn Bad Debts in Six Years

The Asset Management Corporation of Nigeria has recovered N681.5bn of non-performing loans in the last six years of its existence, the Managing Director/Chief Executive Officer of the corporation, Mr Ahmed Kuru, has said.

The recoveries, he said, were made from debtors in the form of cash, properties and shares.

AMCON was set up in 2010 to absorb banking sector-wide NPLs in exchange for government bonds, after the Central Bank of Nigeria rescued nine weak banks from collapse in 2009.

In a statement by the corporation on Monday, Kuru was quoted as saying this during an interaction conference of Federal High Court Judges held at the National Judicial Institute complex in Abuja.

The theme of the conference is, “The AMCON regime: A paradigm shift in debt recovery.”

Kuru said the recoveries were made possible through court-sanctioned settlements or outright judgment.

According to him, the judiciary is the most important stakeholder in the pursuit of its statutory mandate.

This, he said, was why AMCON would continue to seek the support of the judiciary all through its lifespan.

The AMCON boss said his assertion was based on the fact that when all other resolution strategy failed, AMCON resorted to the courts to exercise its special enforcement powers.

He said, “We understand the crucial role of the judiciary, which is why we always look forward to opportunities like this where we can share some of our unique experiences towards ensuring that justice is done in all of our cases based on a thorough understanding of the unique regime under which AMCON was established in 2010.”

The “bad bank” still has around N1.7tn worth of assets under litigations.

The Administrator, NJI, Justice Rosaline Bozimo, who spoke during the event, said the judiciary and all stakeholders in the financial industry were vital to the activities of the AMCON and its debt recovery efforts.

She said this while emphasising the importance of the corporation and its ability to correct the economic flaws of the past.

Bozimo said the call had become necessary because of the critical but difficult assignment of AMCON to recover huge debts as mandated by its establishment Act.

The legal expert informed that the Justice of Nigeria, Walter Samuel Onnoghen, gave approval for the interaction because of AMCON was an integral component of the financial safety net system.

Bozime, therefore, said that acknowledging Nigeria’s critical economic status; acquiring the intellectual competence of promoting the financial system stability and ring-fencing the integrity of the macro-economy from fragmentation, should be encouraged and supported by justices and justices of the Appellate courts.

The statement quoted her as saying, “My Lords, the relevant mechanisms and approaches inherent in complementing AMCON judicial and judiciously to accomplish its primary mandate in the area of liquidity support, assumption of troubled loans and compliments to businesses, should be encouraged and supported by all stakeholders. Hence, the roles of judicial officers in aiding AMCON to achieve its statutory objective are very key.”

The NJI boss said the institute in the future would collaborate with AMCON to ensure that all its judicial officers were exposed to the novel prescriptions in the AMCON Act.

She argued that this development was understandable considering that judges and justices must be effectively and constantly informed to enable them accomplish their tasks with desired precision and competence.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Investment

United States Firms Operating in Nigeria Plans to Invest $2.4 Billion in Nigeria – Report

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United States Firms Operating in Nigeria Plans to Invest $2.4 Billion in Nigeria – Report

A report compiled by the American Business Council, the United States Embassy, Verraki, KPMG and PwC showed American firms operating in Nigeria plans to invest $2.37 billion in the country in the next three years.

In the 2020 Nigeria Economic Impact Survey, the impact of US firms on the Nigerian economy was analysed while changes in business revenue, foreign investment, job creation, gross value added and plans for expansion were measured.

45 United States companies operating in Nigeria were surveyed and data obtained analysed, according to the report.

The report revealed that US companies in Nigeria created over 30,000 indirect jobs in 2019, a decline from three million in 2018 and over 13,100 direct jobs, down from 18,000 in 2018.

The firms realised N1.08 trillion in revenue in 2019, representing a decline from N1.47 trillion when compared to N1.47 trillion generated in 2018.

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Afreximbank, AAAM to Drive Automotive Investment

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Afreximbank

Afreximbank, AAAM to Drive Automotive Investment

The African Export-Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) have entered into a Memorandum of Understanding (MoU) for the financing and promotion of the automotive industry in Africa.

President of Afreximbank, Prof. Benedict Oramah and President of AAAM/Managing Director of Nissan Africa, Mike Whitfield, signed the MoU in early February, according to a statement yesterday.

The deal formalised the basis for a partnership aimed at boosting regional automotive value chains and financing for the automotive industry while supporting the development of enabling policies, technical assistance, and capacity building initiatives.

Oramah, said, “the strategic partnership with AAAM will facilitate the implementation of the Bank’s Automotive programme which aims to catalyze the development of the automotive industry in Africa as the continent commences trade under the African Continental Free Trade Area (AfCFTA).”

Under the terms of the MoU, Afreximbank and AAAM will work together to foster the emergence of regional value chains with a focus on value-added manufacturing created through partnerships between global Original Equipment Manufacturers (OEM), suppliers, and local partners.

The two organisations plan to undertake comprehensive studies to map potential regional automotive value chains on the continent in regional economic clusters, in order to enable the manufacture of automotive components for supply to hub assemblers.

“To support the emergence of the African automotive industry, they will collaborate to provide financing to industry players along the whole automotive value chain. The potential interventions include lines of credit, direct financing, project financing, supply chain financing, guarantees, and equity financing, amongst others.

“The MoU also provides for them to support, in conjunction with the African Union Commission and the AfCFTA Secretariat, the development of coherent national, regional and continental automotive policies, and strategies.

“With an integrated market under the AfCFTA, abundant and cheap labour, natural resource wealth, and a growing middle class, African countries are increasingly turning their attention to support the emergence of their automotive industries.

“Therefore, the collaboration between Afreximbank and AAAM will be an opportunity to empower the aspirations of African countries towards re-focusing their economies on industrialisation and export manufacturing and fostering the emergence of regional value chains,” the statement added.

“The signing of the MoU with Afreximbank is an exciting milestone for the development of the automotive industry in Africa. At the 2020 digital Africa Auto Forum, the lack of affordable financing available for the automotive sector was identified as one of the key inhibiters for the growth and development of the automotive industry in Africa and having Afreximbank on board is a game changer and a hugely positive development,” CEO of AAAM, David Coffey said.

“It is wonderful to have a partner that is as committed as the AAAM to driving the development and growth of our sector on the continent; this collaboration will ensure genuine progress for our industry in Africa,” Coffey added.

Other areas covered by the MoU include working with the African Union and the African Organisation for Standardisation to harmonise automotive standards across the continent and developing an automotive focused training program for both the public and private sector.

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FG Warns Foreign Investors Against Enslaving Nigerians

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Immigration

FG Warns Foreign Investors Against Enslaving Nigerians

The Federal Government on Monday warned foreign investors against subjecting Nigerians working in their companies to industrial slavery.

The government said the warning became necessary following several complaints against foreign companies maltreating some of their staff.

The Chief Commissioner, Public Complaints Commission, Chile Igbawua, issued the warning during a courtesy call on him by a delegation of Pan Africa United Youth Developments Network who came to lay complaint against some foreign companies allegedly maltreating Nigerians working under them.

The PCC said that it would not allow only its state commissioners to handle the issues due to their magnitude as there had been so many complaints about the ways some of the foreign companies were treating their staff.

At the event, the leader of the delegation, Habib Muhammed, expressed concern over alleged injustice and irregularities perpetrated by some company on Nigeria youths whom they engaged as factory workers.

He called on the Federal Government to look into the alleged slavery and injustice meted on Nigerian youths.

While calling on the foreigners to obey the labour laws of Nigeria, Igbawua said, “Our resources cannot be used to enslave us again.”

He said, “We have labour laws in Nigeria for goodness sake and we also have industrial standards; people working in various industries are entitled to good working conditions and minimum conditions of service.”

He added that the law was clear on the issue of casualisation and should be implemented.

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