The Asset Management Corporation of Nigeria (AMCON) has announced a significant milestone in its debt recovery efforts, revealing it has repaid approximately N3.6 trillion to the Central Bank of Nigeria (CBN) since its establishment in 2010. The disclosure was made by AMCON's Managing Director, Gbenga Alade, during a media engagement in Lagos. However, the corporation still carries an outstanding obligation of around N3 trillion to the apex bank.
Intensive Recovery Efforts and Legal Battles
Gbenga Alade detailed the corporation's aggressive strategy to meet its obligations. A major component of this effort involves navigating a complex legal landscape. AMCON is currently pursuing more than 3,000 litigation matters across various courts in Nigeria to recover debts. To bolster these efforts, the corporation has engaged foreign asset trackers to locate and recover properties hidden overseas by high-profile debtors.
Alade emphasized that AMCON's enabling law provides it with a priority in disputes involving collateral, a crucial provision that alters the usual hierarchy of contractual rights and strengthens its recovery position. He also expressed gratitude to the judiciary for its support, noting the establishment of dedicated Insolvency Units at the Federal High Court and new practice directions designed to expedite debt recovery cases.
Financial Performance and Global Comparison
Reviewing the corporation's financial health, Alade presented figures that underscore its operational efficiency. Under his leadership, AMCON recorded N156.25 billion in total revenue against N29.04 billion in operating expenses, achieving an operating revenue ratio of 19%. Looking ahead, the corporation projects its revenue to rise to N215.15 billion for the 2025 financial year, with operating expenses expected to remain stable at about N29 billion. This projection would lower the operating expense ratio to 13.5%.
In a global context, Alade compared AMCON's recovery rate favorably with similar institutions worldwide. He stated that AMCON has achieved a recovery rate of over 87%. This performance surpasses that of Malaysia's Danaharta (58%) and asset management companies in China (approximately 33%). Only South Korea's KAMCO, with a 100% recovery rate, performed better.
Legacy and Ongoing Asset Sales
The AMCON boss reflected on the corporation's foundational role, reminding stakeholders that it spent N1.7 trillion to purchase toxic assets from struggling banks during the financial system crisis. This intervention was critical in stabilizing the Nigerian banking sector, cleaning up non-performing loans, and restoring depositor confidence.
AMCON continues to actively manage and dispose of Eligible Bank Assets (EBAs). Recent notable actions include the sale of the Ibadan Electricity Distribution Company (IBEDC) for N100 billion. Furthermore, the corporation is seeking buyers for assets owned by Silverbird Entertainment, which were seized following a default on an N11 billion loan. These assets include office complexes and residential buildings across the country.
Alade concluded by reaffirming AMCON's commitment to its mandate, executed with "the fear of God, love of country, and complete adherence to the rule of law." He also urged media practitioners to verify claims made by debtors, cautioning that some obligors attempt to use the press to distort facts surrounding their liabilities.
