Independent Shareholders Association of Nigeria. (ISAN) has blamed the inability of Asset Management Company of Nigeria (AMCON) to turn around the banks toxic assets on lack of due diligence on the troubled banks bad debts, the appalling board and management of the agency.
The National Coordinator Emeritus, Sir Sony Nwosu who made the statement at press conference over the weekend said AMCON is currently reported to have about N1.7 trillion worth of assets under litigation across the country.
He said as at August 2022, the total recoveries so far by the corporation are pegged at about N1.4 trillion.
He said the poor recovery of the agency has prompted most stakeholders rush to ascertain the current value of the forfeited asset stocks
He said with the mandate to acquire toxic loans from troubled banks at a discount rate, AMCON was expected to dispose the loans within the stipulated time frame and use the proceeds to leverage the national economy.
Nwosu noted that AMCON’s failure to live up to expectation has generated serious stakeholders’ queries, questioning the justification for the establishment of AMCON.
He said the corporation’s delay in turning around the ‘toxic’ loans remains very worrisome, especially now the federal government is facing dwindling revenue and challenges in executing critical capital projects.
Urging Central Bank of Nigeria (CBN), to rise up to the national systemic banking industry challenges through sustainable financial sector bailout, he said shareholders serious believe that the federal government floating of AMCON is a distraction that has prolonged the banking industry challenges and must be eliminated with huge funds intervention like in most developing and developed climes.
The association also accused “AMCON of killing the banking industry and the entire financial services sector, adding that the Association want the federal government to tighten the noose on debtors and reject the aroma of the free funds from the banking industry levies but reflect on the negative impact of the levies on the real sector and the economy.
