Bank Debtors Cough Out N1.48trn – AMCON

• Says over N4.158trn still outstanding

BY SEGUN ADEBAYO – The Asset Management Corporation of Nigeria (AMCON) says its efforts at reining in bank debtors have so far yielded results with the recovery of about N1.48 trillion from the total figure of N4.158 trillion entered against them.

Managing Director of the Corporation, Ahmed Kuru, however, said there are still over 7,902 outstanding obligors with a total outstanding loan above N3.1 trillion to their names.

Speaking at the 2021 retreat organised by the Senate Committee on Banking Insurance and Other Financial Institutions in Kaduna, Kuru disclosed that 350 obligors alone account for more than N2.053 trillion, representing over 70 percent of the outstanding debts.

According to him all actions so far taken by the Corporation are “geared towards settling our obligation with the CBN”, adding; “After recovery and disposal, funds are paid directly into our CBN account.”

He further explained that; “Recovery and disposal of assets have so far contributed above N1.270 trillion towards settling our obligation. The economy and the banking industry are not growing at the expected rate thereby creating a huge gap in our recovery activities.”

Kuru, who lamented that the current rate of debts’ recovery still remains unsatisfactory, said; “We may not be able to cycle out even in the next five years. Additionally, the interest rate AMCON is shouldering on its bond to the CBN is making it difficult for the recovery rate to grow.

“There is no easy way to recover money, no easy way. It is always difficult for both sides. One doing a hard job and the other responding to a hard situation.”

The AMCON boss said it is important to keep reminding ourselves that most of “these loans have remained uncollected for a minimum of 10-15 years”, even as he stressed the fact that the Corporation has the “responsibility to collect and shall continue to pursue them within the purview of the law.”

In his remarks at the retreat, Chairman of the Senate Committee on Banking Insurance and Other Financial Institutions, Senator Uba Sani, said the upper legislative Chamber would not relent in pushing for effective collaboration from the Nigerian Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) in supporting AMCON’s debt recovery activities across the country.

Determined to strengthen its capacity at loan recovery from chronic debtors, the Red Chamber had in April 2021, passed the AMCON amendment bill empowering the Corporation to take possession, manage or sell all properties traced to debtors.

Specifically, the bill envisages that this would be applied, whether or not such assets or property is used as security/collateral for obtaining the loan in question.

Consistently, AMCON has maintained that the over N3.6 trillion debts if successfully recovered would help the country revamp the moribund Ajaokuta Steel Company in Kogi State, as well as bankroll over two million micro-businesses with N2 million each or about 200,000 Small and Medium Enterprises (SMEs) with N20 million each in empowerment funding to help create jobs for Nigeria’s teeming unemployed youth.