AMCON to Pay Central Bank Over N4 Trillion Debt

In a bid to secure jobs and protect the banking sector from collapsing, the Asset Management Corporation of Nigeria (AMCON) said it used over N4 trillion procured from the Central Bank of Nigeria to acquire bad debts from financial institutions.

The Corporation said the debt owed to the apex bank could hit almost N7 trillion by 2024 given the current inflation rate.

“There is a dire need for all sister agencies of the Federal Government of Nigeria to join forces to ensure that the economic saboteurs who intend to cripple the banking sector before AMCON was set up are compelled to repay the humongous debt that is weighing down the Nigerian economy,” the corporation said.

Ahmed Kuru, the Managing Director/Chief Executive Officer, AMCON, was quoted as saying AMCON had several legal issues in various courts with obligors, saying the over N5 trillion owed to the corporation would have a negative effect on the nation’s resources.

The President of the Court of Appeal, Justice Monica Dongban-Mensem and the Administrator of the National Judicial Institute, Justice R.P.I Bosimo, (retd.) called on the judiciary to speed up the proceeding process involving AMCON and obligors.

In the statement, Justice Bozimo was quoted as saying, “The role of the judiciary in the execution of AMCON mandate cannot be overemphasised. This is understandable considering that the distinguished bench is indispensable to the realisation of the enormous powers conferred on the corporation by the AMCON Act.

“It is through these interactions that the judiciary will be sensitised on the complex role AMCON plays at ensuring the sustenance of the financial system stability in Nigeria.

“The level of financial stability currently enjoyed in the country is solely attributable to the role played by AMCON in offloading toxic portfolios from the balance sheets of banks thus enabling the banks to perform their intermediating role in the macro-economy.”