…Tightens grip on big debtors amid 3,000 court cases

By Uche Usim

The Asset Management Corporation of Nigeria (AMCON) says it has so far repaid about N3.6 trillion to the Central Bank of Nigeria (CBN) since it was created in 2010 to stabilise the financial system.

The Corporation has also vowed to tighten grip on big debtors even as it battles over 3,000 ongoing litigations in various courts across the country.

The Managing Director and Chief Executive Officer, Gbenga Alade, revealed this yesterday during a media parley in Lagos, noting that the corporation is still owing about N3 trillion.

Alade explained that although AMCON spent N1.7 trillion buying toxic assets from struggling banks, it has returned far more to the CBN. He said the agency’s intervention helped keep banks afloat by removing bad loans from their books and injecting fresh funds. “With this mechanism, bank depositors retain their deposits because they have confidence in the financial system,” he said, adding that AMCON manages the purchased Eligible Bank Assets (EBAs) until they can be disposed of.

He noted that the law setting up AMCON gives the agency priority over debtors in disputes involving collateral, saying the act “upsets and reverses the contractual rights and securities law hierarchy.” Alade also disclosed that AMCON has hired foreign asset tracers to help locate properties hidden abroad by high-profile debtors. “Some of these obligors have hidden their assets across the globe,” he said.

Reviewing the corporation’s finances, Alade said AMCON recorded total revenue of N156.25 billion and operating expenses of N29.04 billion under his watch. The operating revenue ratio stood at 19 percent. He projected that 2025 revenue will hit N215.15 billion, with operating expenses expected to remain flat at about N29 billion, dropping the ratio to 13.5 per cent.

He argued that AMCON’s performance compares favourably with similar agencies worldwide. “AMCON outperformed other Asset Management Corporations all over the world by achieving over 87 per cent in recoveries despite the unique challenges associated with debt recovery in Nigeria,” he said. He pointed out that Malaysia’s renowned Danaharta managed only 58 per cent, while China’s asset management firms achieved 33 percent. Only South Korea’s KAMCO performed better at 100 percent, “due to the brute force with which they chased the obligors.”

Alade revealed that AMCON has commissioned consultants to review all its court cases across the Federal High Court, Court of Appeal and Supreme Court. He said the judiciary understands AMCON’s struggles with debtors, leading to the approval of a new practice direction for faster debt recovery. The Federal High Court has also created Insolvency Units to speed up pending cases.

He praised President Bola Tinubu, the judiciary, the CBN, the Ministry of Finance, the Attorney-General of the Federation, security agencies and the media for supporting AMCON’s recovery work. According to him, AMCON will continue its mandate “with the fear of God, love of country, and complete adherence to the rule of law.”

Alade cautioned journalists to be wary of false narratives from debtors attempting to “leverage the media to misinform the public.”

He said many of them took loans “with no intention whatsoever to repay,” urging the media to verify claims because AMCON holds accurate records backed by several court victories. He added that AMCON’s cases have shaped Nigerian legal precedent, leading to the publication of its first legal compendium.