The Federal Government of Nigeria has declared total war on debtors owing the Asset Management Corporation of Nigeria (AMCON), billions of naira. The Vice-President, Prof Yemi Osinbajo, said the Federal Government will use some individuals and organisations on the list of high-profile debtors as example to others to deter them from owing.
He said the Federal government would stop doing business with the debtors.
According to the Vice President, who spoke when AMCON Management led by the Board Chairman, Muiz Banire paid him a visit at the State House Abuja, such individuals and group, had made it impossible for the corporation to resolve its outstanding N5tn debt, thereby holding the entire nation to ransom with their bad behaviour.
Osinbajo said: “I think the time has come for us (Federal Government) to set some examples with some of these top debtors of AMCON, which I believe will set a good example and serve as deterrent to others.”
In a statement issued by AMCON, Osinbajo said he was impressed with the performance of the executive management of AMCON under the leadership of Ahmed Kuru, for the recovery successes that had been achieved so far against all odds.
He promised Federal Government’s support to the corporation for it to pursue the obligors that had remained recalcitrant.
“I congratulate AMCON for the work done so far having recovered over N1tn and counting both in cash and in assets. The work you do as a recovery agency is not something that is particularly easy or encouraging because we all know how Nigeria works,” he said.
Chairman of AMCON’S board, Banire in his remarks said their visit was to congratulate President Muhammadu Buhari and the Vice President on their victory at the recent polls using the opportunity to highlight some of the challenges faced by AMCON as a result of the attitudes of some debtors.
He disclosed that as at end of December, 2018, AMCON’s Assets Under Management (AUM) amounted to about N172.5 billion.
“It is noteworthy to state that out of the total real estate properties, assets available for sale are valued at N62 billion. Of this N62 billion, about 83 per cent comprises bare land and other assets, which may need considerable improvement to convert into income generating assets. Your Excellency may recall that in September 2018, following the takeover of Skye Bank Plc. by the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC), AMCON was again invited to inject a total sum of N898.45 billion as capital, thereby leading to the emergence of another bridged bank named Polaris Bank Limited.
“The intervention in Skye Bank was caused majorly by internal abuse by the operators. As a result of that development, AMCON’s total debt obligation to the CBN is currently in excess of N6 trillion.
“And 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. But, despite the successes recorded, the corporation has been facing a number of challenges, which include obligors resorting to all manner of tactics to avoid honouring their obligations.
“Whilst some are still enjoying government patronage, others are using the judiciary and adopting legal technicalities to stall recovery, which is why we need a new strategy to enable AMCON meet its mandate before sunset,” he said.
