The Asset Management Corporation of Nigeria (AMCON), the government-owned agency established in 2010 to stabilize and revitalize the Nigerian financial system, has repaid about N3.6 trillion to the Central Bank of Nigeria (CBN) since inception.
Disclosing this at a meeting with the media in Lagos yesterday, the Managing Director of the Corporation, Mr. Gbenga Alade, also said that even though it has paid N1.7 trillion to purchase the toxic assets of banks, it has been able to repay about N3.6 trillion and still owing about N3 trillion.
According to him, AMCON restructured the banks by offloading toxic assets from their books and injecting fresh funds, aligning with corporate insolvency restructuring principles.
He added that with this mechanism, bank depositors retain their deposits because they have confidence in the financial system, assuring banks’ ability to honour their obligations, adding that AMCON then manages the acquired Eligible Bank Assets (EBAs) preparatory to their disposal.
Alade noted that the law establishing AMCON upsets and reverses the contractual rights and securities law hierarchy by conferring priority to AMCON in disputes with bank debtors over collateral and contracts.
He stated further, “As part of our recovery strategy, we have commissioned some foreign asset tracers who will help us locate where some of these obligors have hidden their assets across the globe.”
Speaking on the financial performance of the corporation since he assumed duties as the helmsman, he said the corporation recorded total revenue of N156.25 billion and total operating expenses of N29.04 billion, remarking that total operating revenue/revenue ratio was 19 percent.
Alade said projected total revenue for 2025 will be N215.15 billion while projected total operating expenses will be N29.06 billion with total operating/revenue ratio will be in the region of 13.5 percent.
“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world. Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87% in recoveries despite the unique challenges associated with debt recovery in Nigeria.
“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s only achieved 58%. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33%. Only the Korean Asset Management Corporation (KAMCO) South Korea has achieved more recoveries than AMCON, with about 100%. This was due to their brute force with which they chased the obligors.
“Despite KAMCO’s recovery records, the agency is still operational to date with slight realignments in its mandate. Other noted Asset Management Corporations that have transitioned into a perpetual institution of the various governments include, China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) USA, and KFW Germany. So, gentlemen, without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realised,” Alade said.
