The Asset Management Corporation of Nigeria (AMCON) plans to engage international asset tracers to unmask and seize hidden assets of recalcitrant bad debtors anywhere in the world in a renewed bid to recover huge funds being held by individuals and companies.
About 20 individuals and companies are responsible for more than two-thirds of the outstanding debts of about N5 trillion.
The international asset tracers will be empowered to locate special purpose vehicles (SPVs), nominees, custodians and other various subterranean ways of hiding assets and enforce recovery orders on such hidden assets.
The international asset tracers will complement renewed efforts by the new management of AMCON to track and seize domestic assets of the major debtors. President Bola Tinubu had in February 2024 appointed a new management for AMCON in a major push to resolve the lingering debt crisis.
Managing Director, Asset Management Corporation of Nigeria (AMCON), Mr. Gbenga Alade, yesterday in Lagos outlined the blueprint of the new management to senior media executives, with a promise to ensure transparency, fairness, optimal value and overall wellbeing of the economy in the running of the debt-resolution corporation.
According to him, by engaging international asset tracers and focusing on key sectors, AMCON aims to recover outstanding debts and contribute to the overall economic growth and development of the country.
He said the corporation has been receiving strong supports from all relevant stakeholders including President Tinubu, Central Bank of Nigeria Governor, Federal Ministry of Finance, Attorney General of the Federation, and the National Assembly.
Alade, who resumed formally in April 2024, pointed out that in the first five months, the new management has successfully collected approximately N100 billion from several high-profile debtors and revised the sale of some assets.
He noted that a particular deal that was earlier valued and concluded at a lower value was reopened and closed by the new management at more than 100 per cent, underlining the global experience and diverse expertise of the new management team.
Alade highlighted four key sectors that the new management has chosen to focus on, including oil and gas, power, telecommunications, and aviation.
According to him, AMCON has made significant progress in one of the biggest distribution companies and an abandoned power project in Kaduna.
He noted that a memorandum of understanding has been signed, and operations are expected to commence within the next six months while the corporation is also working on other assets in the power sector, particularly in Aba, as reliable power supply has become a major concern for small, medium, and large-scale enterprises.
Alade emphasised the potential impact of addressing power challenges in Nigeria, stating that some banks with approximately 400 branches across the country spend as much as N500 billion annually on diesel for their generators. He believes that tackling the power sector will significantly improve the overall business environment.
He expressed confidence that resolving issues surrounding assets in the oil and gas sector will boost production, generate more foreign exchange, and create employment opportunities for citizens.
He said the corporation is also working on assets in the telecommunications sector, aiming to revive dormant assets and bring them back into operation.
According to him, in the aviation sector, the corporation is addressing issues involving two airlines, with the hope of increasing Arik Airline’s fleet from three to eight aircraft by March 2025, which could help reduce airfares in the local aviation industry.
He noted that the Chairman of the House Committee on Finance has pledged to name and shame obligors who have yet to repay their debts at a major stakeholders’ conference that would hold before the end of the year.
He outlined plans to organize a conference where senior officials from the Central Bank of Nigeria (CBN), relevant ministries, banks, and the judiciary will be invited to discuss the challenges posed by non-performing loans in the country.
He assured that AMCON remains committed to its mandate of resolving non-performing loans and stabilizing the Nigerian financial system.