By Adedapo Adesanya
The Asset Management Corporation of Nigeria (AMCON) has announced plans to engage international asset tracers to locate and recover outstanding debts of nearly N5 trillion hidden by debtors offshore including those masqueraded under Special Purpose Vehicles (SPVs).
This was disclosed by the Managing Director/Chief Executive Officer, Mr Gbenga Alade, in Lagos, on Monday, noting that since the new management took over five months ago, it has successfully recovered approximately N100 billion from several high-profile debtors and revised the sale of some assets.
He emphasised that the organisation has been receiving support from the Presidency, the Central Bank of Nigeria (CBN), the Federal Ministry of Finance, the Attorney General of the Federation, and the National Assembly in their efforts to recover debts transferred by banks to AMCON during the different phases of Eligible Bank Asset (EBA) acquisition.
Furthermore, the CEO mentioned that the Chairman of the House Committee on Finance has pledged to name and shame obligors who have yet to repay their debts at a major stakeholders’ conference that would be held before the end of the year.
He revealed plans to organise a conference where senior officials of the CBN, relevant ministries, banks, and the judiciary would be invited to discuss the challenges posed by non-performing loans in the country.
Mr Alade highlighted four key sectors that the new management has chosen to focus on oil and gas, power, telecommunications, and aviation.
He expressed confidence that resolving issues surrounding assets in the oil and gas sector would boost production, generate more foreign exchange, and create employment opportunities for citizens. The CEO noted that they have achieved remarkable results in two of these assets in less than five months.
In the power sector, AMCON has made significant progress in one of the biggest distribution companies and an abandoned power project in Kaduna.
According to him, a memorandum of understanding has been signed, and operations are expected to commence within the next six months.
He added that the corporation is also working on other assets in the power sector, particularly in Aba, as reliable power supply has become a major concern for small, medium, and large-scale enterprises.
Mr Alade emphasised the potential impact of addressing power challenges in Nigeria, stating that some banks with approximately 400 branches across the country spend as much as N500 billion annually on diesel for their generators.
He believes that tackling the power sector will significantly improve the overall business environment.
AMCON is also working on assets in the telecommunications sector, aiming to revive dormant assets and bring them back into operation, he added.
In the aviation sector, the corporation is addressing issues involving two airlines, with the hope of increasing Arik Airline’s fleet from three to eight aircraft by March 2025, which could help reduce airfares in the local aviation industry.
“The Asset Management Corporation of Nigeria remains committed to its mandate of resolving non-performing loans and stabilising the Nigerian financial system.
“By engaging international asset tracers and focusing on key sectors, AMCON aims to recover outstanding debts and contribute to the overall economic growth and development of the country,” he stated.