13 July 2018

Nigeria: N4.8trn Bad Debt - Senate to Allow Amcon Publish Debtors' List

Photo: Vanguard
Estates.

The Senate, yesterday said it would soon authorise the Asset Management Corporation of Nigeria (AMCON) to publish names of the debtors responsible for 80 percent of its N4.8 trillion debt.

Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Rafiu Adebayo Ibrahim, disclosed this at a 2-day retreat to discuss the AMCON Act Amendment Bill.

He said since AMCON has over the past seven years done its best to resolve these debts but are still encountering resistance from obligor, the 8th Senate would have no option than to urge AMCON to compile and publish the list of all these debtors on major daily newspapers in the country.

He however urged the Management of AMCON to collaborate with the Federal Ministry of Finance (FMF), Central Bank of Nigeria (CBN) and the office of the Attorney General of the Federation to propose that the President of the Federal Republic of Nigeria issues an Executive Order on seizure of assets of persons who are indebted to AMCON.

In a keynote address he delivered at the commencement of the retreat, Ibrahim said the upper chamber is intent on having serious discussions as soon as possible with major stakeholders such as CBN, FMF, Nigerian Deposit Insurance Corporation (NDIC) and relevant committees from the legislature among others, where issues hindering AMCON from performing optimally including the funding model of AMCON would be discussed to enable the recovery agency finish its assignment.

Earlier in his presentation, Managing Director/Chief Executive Officer, AMCON, Mr. Ahmed Kuru, reminded the Senate Committee that the implication of failure by AMCON to recover its debt goes beyond economic cost.

Kuru said that AMCON, after seven years of negotiating with the obligors with no commensurate recovery result, has decided to change its strategy, which now pays strict attention to enforcements as a way of compelling, especially the recalcitrant obligors, to come and pay up their debts.

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