- 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.