Setting up AMCON is a blessing to Nigeria – Ahmed Kuru

The Managing Director/Chief Executive Officer, the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has described the setting up of AMCON in 2010 as a blessing to Nigeria’s economy.

Kuru who disclosed this recently while speaking on his first five years in office said despite the lingering economic challenges and deliberate tactics of some recalcitrant obligors, the corporation has recorded a lot of successes.

“So far, we have made a total recovery of above N1.2 trillion. We have sold assets worth about N500 billion and have resolved close to 5000 eligible bank assets (EBSs). The corporation has paid over N2 trillion to the CBN.

According to him, the  fundamental objectives for the establishment of AMCON was to rescue commercial banks and some underlying strategic businesses in Nigeria from the brink of collapse in the aftermath of the global financial crises of 2008 through acquisition of non-performing loans and to dispose of the underlying assets in the most profitable manner.

“AMCON also had the mandate to recapitalise the banks and to recover the debts using the various resolution mechanisms created under the Act, which I can tell you have been executed effectively.

“As at today, AMCON has achieved the first mandate of purchasing the Non-performing Loans (NPLs) and providing liquidity to the commercial banks. We are currently focused on the second and most difficult phase of recovery and restructuring of the bad loans.

“Recall that AMCON acquired over 12,000 NPLs worth N3.7 trillion from 22 banks and injected N2.2 trillion as financial accommodation to 10 banks in order to prevent systemic failure. As a result of this intervention, our current liability with CBN is around N4.7 trillion while the sum of N2 trillion has been repaid so far.

In the area of supporting businesses, Kuru said AMCON has done very well, especially in the aviation and manufacturing sectors.

“Our intervention efforts in Arik Air with the support and collaboration of the federal government did a great service to the growth of the sector. A similar intervention in Aero Contractors also saved the airline from collapse.

“As a matter of fact, the Nigerian Civil Aviation Authority (NCAA) certified Aero, which is under AMCON receivership, to commence C-check maintenance services on Boeing series in Nigeria. This is a commendable feat in Nigeria’s aviation industry. And there are several other companies that we have saved.

On the issue of recalcitrant debtors, Kuru said, “We have said it several times that some of them borrowed the money from the banks with no intention to pay back, which was why we have been calling on the federal government to reconsider the reintroduction of the Failed Bank Act to make the operators also answerable.

“It is not a bad thing to borrow money, but it is bad to avoid paying back. Government should not do business with those that cannot keep to commitment. We know things are hard, but commitment is commitment. At least, let us be talking and performing. We shall continue to pursue them through the instrumentality of the courts by being law abiding, although some of them want to avoid the law,” he added.

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