AMCON boss laments difficulties in recovery of debts

Many may still remember the birth of the Asset Management Company of Nigeria (AMCON) but may not understand the reality of what the firm has been facing in its bid to prevent further damage to the nation’s economy.

The Managing Director, Ahmed Kuru gave an insight into how difficult it is get back the non-performing loan or bad debts.

In the beginning, “AMCON purchased about 13,700 loans from commercial banks and paid 1.7 Trillion Naira for them, 23 commercial banks in all.”

Conversely, because of the pricing, again AMCON recapitalise some of these commercial banks to zero paying another 2.2 trillion Naira making 3.9 trillion Naira which at that time, was bigger than the national budget.

80% of these loans were held up in 300 companies or rather individuals with cumulative assets net worth of 1.7 Trillion Naira but the recession and inflation the market eventually crashed.

Repayment is the hardest part of the process. Most of the defaulters had been acquiring assets, which form the basis of the recovery.  Kuru,  said that no single individual has 10 Billion Naira in cash.

“The funds to be recovered are locked in assets. And confiscation only occurs with a court order when the person refuse to commit to a repayment schedule.