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Tribune Online
‘We never thought AMCON debts ‘ll be recovered fully’

AMCON

Even from the point of establishment, there was never a time that major stakeholders thought that all the bad debts acquired by the Assets Management Corporation of Nigeria (AMCON) would be fully recovered.

This revelation was made last week by the pioneer Managing Director of AMCON Mr Mustafa Chike Obi in an exclusive interview with Nigerian Tribune.

Specifically, Chike Obi revealed that the bad bank in simple terms paid 30 kobo for every one Naira debt, and has recovered close to the same amount.

“We never thought the AMCON debt will be recovered fully. We paid 30 kobo in a Naira for the debt and we have recovered close to 30 kobo in the Naira.

“That is what we paid for it. We did not pay N100. We didn’t pay one Naira for every one Naira debt, we paid 30 kobo and we have recovered close to 30 kobo.”

He was reacting to a question bothering on arguments made over five years ago by some critics, who predicted that the debts will never be recovered.

However, available records show that as at October 23, 2019, AMCON had recovered N759 billion.

This amount includes cash and seized properties worth N264 billion out of reported debts of N5 trillion.

It is even estimated that the debts could rise to N6.6 trillion by 2024 because of its N4.5 trillion indebtedness to the Central Bank of Nigeria.

It should be recalled that over 350 Nigerians are said to be responsible for more than 80 per cent of the N5 trillion debt profile of AMCON. The huge debts have lingered for several years.

AMCON was set up by the Federal Government in 2010 to acquire non-performing loans from banks in order to ensure the viability of the country’s financial sector.

The Federal Government, through the operation of the Central Bank of Nigeria, conceptualised the idea for the establishment of a body that would prevent financial crisis in the country.

The apex bank said the carrying value of AMCON’s liabilities increased from N4.53 trillion at the end of June 2018 to N5.43 trillión as of December 2018, arising from the corporation’s investment.

‘We never thought AMCON debts ‘ll be recovered fully’
Tribune Online



source https://tribuneonlineng.com/we-never-thought-amcon-debts-ll-be-recovered-fully/

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