Economy

Debt: AMCON Recovers N1 Trillion in 8 Years

  • Debt: AMCON Recovers N1 Trillion in 8 Years

The Asset Management Corporation of Nigeria (AMCON) recovered just N1 trillion from debtors of banks whose loans were acquired by the agency, the Minister of Finance, Mrs Zainab Ahmed has said.

The Minister, who was inaugurating the board of AMCON under the chairmanship of Mr Muiz Banire (SAN), said out of the total amount recovered, cash accounted for 60 per cent, while assets such as properties and equity securities accounted for the remaining 40 per cent.

Since AMCON commenced operations in 2010, AMCON’s debt obligation to the CBN has jumped to over N5 trillion, while it has paid just over N1 trillion to the CBN. Raising concerns on how the new management board would recover the N5.4 trillion debt.

“AMCON’s total debt obligation to the CBN is currently in excess of N5tn. It is evident that the Federal Government cannot afford to write off this debt in the short term hence, our moral obligation to pursue obligors and recover the debts owed,” the minister said.

She said the decision of the Federal Government to set up the agency helped protect 14,000 jobs and N3.66 trillion deposits. However,  without recovery, the agency won’t be able to rescue other businesses in financial distress and this could lead to systemic risk and weigh on economic productivity and job creation.

“The direct impact of that action is seen in the protection of about N3.66tn of depositors’ funds and approximately 14,000 jobs were saved.”

“At inception, the corporation acquired over 12,000 non-performing loans worth approximately N3.7tn from 22 commercial banks; injected N22tn as financial accommodation to ten banks.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

Share
Published by
Samed Olukoya

Recent Posts

Metering Gap Exceeds 7 Million Despite Multilateral Loans and Government Funds

Despite interventions by the Federal Government and multilateral lenders amounting to over N1.5 trillion, Nigeria’s…

38 minutes ago

Petrol Prices Surge to N990 in Abuja, N960 in Lagos as Oil Tops $80 Per Barrel

The Nigerian National Petroleum Company Limited (NNPC) has increased the pump price of petrol at…

1 hour ago

Brent Crude at $79.38 Amid Trump’s National Energy Emergency Declaration

Oil prices remained steady on Wednesday as investors assessed the potential impact of U.S. President…

3 hours ago

Netflix Hits 302 Million Subscribers, Surpasses $10 Billion in Annual Operating Income

Netflix ended 2024 on a high note as its global subscribers rose to 302 million…

3 hours ago

PalmPay Explores Remittance Services as Part of Ambitious Global Growth Strategy

PalmPay, a leading Nigerian fintech company with over 30 million users and $6 billion in…

3 hours ago

Dollar to Naira Black Market Exchange Rate Today, 22nd January 2025

The dollar to naira exchange rate continues to be a focal point in Nigeria's financial…

14 hours ago