The Asset Management Corporation of Nigeria, AMCON, has expressed worry over the implication of its increasing debt profile to the Central Bank of Nigeria, CBN, on the nation’s economy
Already, the debt profile has hit N4.7 trillion as a result of failure of federal government agencies to meet their obligations.
Speaking at a seminar for judicial officers in Abuja, the Managing Director/CEO of AMCON, Mr. Ahmed Kuru, disclosed that AMCON was indebted to the CBN to the tune of N4.7trillion.
According to him, the figure was more than half of the 2018 national budget proposal before the National Assembly.
Kuru also disclosed that more than 70 per cent of the corporation’s Eligible Bank Asset (EBA), portfolio was locked in one form of litigation or the other.
He therefore sought the help of the judiciary to resolve the loan issues within record time.
He added too that there was a rising number of appeals emanating from trial courts on AMCON’s cases
He added that at its present state the corporation’s existence, quick determination of appeals brought before the courts would help in resolving all outstanding assets and prevent the undesired economic consequences of failure to recover the assets.
He stressed that the inability of the corporation to resolve the rising debt profile would have dire implications for the entire Nigerian economy.
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It would be recalled that AMCON was created by the National Assembly in response to the global financial crises of 2008/2009.
It acquired over 12,000 non-performing loans worth about N3.7 trillion from 22 banks.
Out of them, the corporation injected N2.2 trillion as financial accommodation to 10 commercial banks in order to prevent systemic failure.
The action helped stabilise Nigeria’s financial system, leading to the protection of about N3.66 trillion of depositors’ funds and about 14,000 jobs were saved.
The idea was to recover the debts either through structured repayment or disposing of transferred assets towards settlement of the bonds.
