AMCON Recovers 36% of N4.16trn non-performing Loans – About 36 per cent (actually 35.6 per cent) of the N4.16 trillion toxic loans bought over by the Assets Management Corporation of Nigeria (AMCON) has so far been recovered.
In order to save the banking industry from collapse and boost financial stability in the country, AMCON purchased the loans owed by bank debtors.
Speaking on Monday on the steps being taken to recover the debts, the Managing Director of the corporation, Mr Ahmed Kuru, said about N1.48 trillion have been retrieved.
He stated that due to debt recovery challenges the corporation was facing, it still had 7,902 outstanding obligors with a total outstanding loan of above N3.1 trillion, adding that 350 obligors alone accounted for over N2.05 trillion, which constitutes more than 70 per cent of the total outstanding amount.
According to a statement issued by AMCON, Mr Kuru gave these details when he spoke in Kaduna at the 2021 retreat of the Senate Committee on Banking Insurance and other Financial Institutions with the management of AMCON.
The AMCOM chief informed the lawmakers that the agency was strongly battling with its debt recovery activities, noting that it was very difficult, particularly given AMCON’s peculiar situation, to recover these bad loans.
He said despite the efforts of the corporation, the economy and the banking sector were not growing at the expected rate, creating a huge gap in its recovery operations.
“All our action is geared towards settling our obligation with the CBN. After recovery and disposal, funds are paid directly into our CBN account.
“Recovery and disposal of assets have so far contributed above N1.27tn towards settling our obligation. The economy and the banking industry are not growing at the expected rate thereby creating a huge gap in our recovery activities.
“At the recovery rate we are currently experiencing; we may not be able to cycle out even in the next five years.
“Additionally, the interest rate AMCON is shouldering on its bond to the CBN is making it difficult for the recovery rate to grow,” he disclosed.
Mr Kuru, however, reaffirmed the commitment of the corporation to its mandate of loan and assets recovery, regardless of the difficulties encountered.
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