- The minister of finance, Zainab Ahmed, said AMCON has recovered N1tn from debtors since its establishment in 2010
- Ahmed said 60% of the recovery was cash while non-cash assets such as properties and equity securities accounted for the balance of 40%
- The finance minister tasked the new board of the debt recovery agency to come up with innovative ways to recover outstanding loans
The federal government has said that the Asset Management Corporation of Nigeria, since the commencement of operations in 2010, has recovered about N1tn from debtors of banks whose loans were taken over by the corporation.
The Punch reports that the minister of finance, Zainab Ahmed, said this in Abuja during the inauguration of the board of AMCON.
Legit.ng gathers that the newly constituted board is under the chairmanship of Muiz Banire (SAN).
AMCON is an agency set up by the federal government through the Central Bank of Nigeria (CBN) to bail out banks through the purchase of non-performing loans and to recover loans from debtors.
The finance minister added that 60% of the recovered amount was cash while non-cash assets such as properties and equity securities accounted for the balance of 40%.
She said over the same period, AMCON’s repayment of its indebtedness to CBN was over N1tn, while its total debt obligation to the CBN currently stood in excess of N5tn.
Ahmed explained that going by the current economic realities, the federal government could not afford to write-off the debts in the short term.
She tasked the new management board to come up with creative strategies to recover the outstanding loans since it had now become a moral obligation for the government to recover the outstanding liabilities.
Her words: “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.
“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.
“AMCON has been able to recover over N1tn since inception to the 2018 year end.
“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.”
She admitted that the corporation had made significant progress in its management of toxic assets in the financial sector.
Ahmed said that the government would do all it could to recover debts to AMCON and hinted that payment to any contractor in this category might be frozen until such obligations to AMCON were met.
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Legit.ng had earlier reported the Nigerian Senate on Wednesday, October 10, confirmed Muiz Banire, a former legal adviser of the All Progressives Congress (APC), as the chairman of the governing board of AMCON.
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