N1tn recovered by AMCON from debtors in eight years –FG

By Alex Ekemenah
Asset Management Corporation of Nigeria (AMCON) has recovered the whooping sum of N1 trillion so far from banks’ obligors since the corporation was established in 2010.
The Minister of Finance, Mrs. Zainab Ahmed, made this disclosure in Abuja while inaugurating the board of AMCON under the chairmanship of Mr. Muiz Banire (SAN).
AMCON was set up in 2010 by the Federal Government through the Central Bank of Nigeria to bail out banks through the purchase of non-performing loans and to recover loans from banks’ obligors.
The Minister said that out of the recovered amount, cash accounted for 60 per cent, while non-cash assets such as properties and equity securities accounted for the balance of 40 per cent.
Ahmed revealed that 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.
She explained that going by the current economic realities, the Federal Government could not afford to write-off the toxic debts in the short term.
She therefore called on 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.