AMCON achieves N1.960 trillion in recoveries
The Asset Management Corporation of Nigeria (AMCON) has achieved a remarkable milestone, with total recoveries amounting to N1.960 trillion, as revealed by its Managing Director, Gbenga Alade. This announcement came during a visit from the House of Representatives Committee on Banking and Other Ancillary Institutions, led by Chairman Eze Nwachukwu Eze.
Significant Achievements in Recovery
In a detailed briefing, Alade outlined the composition of these recoveries. Cash recoveries account for 43% of the total, amounting to a significant portion of the overall sum. The sale of bridged banks contributes 13%, proprietary shares 11%, and clawback and repurchases 9%. Additionally, sales of property assets and rentals, as well as investment income, each represent 9% and 7% of the total recoveries, respectively, with other sources making up the remaining 7%.
“Since its inception, AMCON has disposed of proprietary assets worth about N651 billion,” Alade noted. He also highlighted that the Corporation has made a total repayment of N2.929 trillion to the Central Bank of Nigeria (CBN) from 2013 to 2023. This figure includes contributions to the Sinking Fund by other Deposit Money Banks (DMBs) alongside AMCON’s recoveries.
Overcoming Initial Challenges
Alade acknowledged the initial difficulties faced by the Corporation but praised the support from the National Assembly for facilitating these substantial recoveries. “Despite a shaky start-off model, the Corporation has, with the support of the National Assembly, made considerable recoveries,” Alade stated.
Legislative Support and Oversight
Chairman Eze commended AMCON’s efforts and emphasized the importance of continued innovation and adherence to best practices in asset recovery and management. “Transparency, accountability, and efficiency must remain the cornerstones of AMCON’s operations,” Eze asserted. He assured that the committee members would provide necessary support through appropriate legislative frameworks and oversight functions to ensure that AMCON fulfills its recovery mandate effectively.
Eze underscored the necessity of collaboration between AMCON, the National Assembly, financial institutions, regulatory bodies, and other stakeholders. “We are committed to fostering an enabling environment that supports AMCON’s efforts and promotes the stability and growth of our financial system,” he added.
AMCON’s Role in Economic Stability
Reflecting on the journey since AMCON’s inception, Eze highlighted its pivotal role in stabilizing Nigeria’s financial system, particularly in the aftermath of the 2009 global economic crisis. “AMCON was established to address the non-performing loan crisis that threatened the stability of our banking sector,” Eze said. He acknowledged the significant strides made by AMCON in fulfilling its mandate and emphasized the importance of maintaining this momentum.
Future Directions and Challenges
Eze stressed that as Nigeria navigates through global uncertainties and domestic challenges, AMCON’s role becomes even more critical. Resolving non-performing loans, recovering debts, and managing acquired assets are essential to ensuring the stability and resilience of the banking sector. He encouraged AMCON to adopt innovative strategies and leverage technology to enhance its operations.
The committee’s visit to AMCON was part of their legislative functions, as mandated by sections 62, 88, and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended). This empowers the National Assembly to oversee all Government Ministries, Departments, Agencies (MDAs), and Government-owned Enterprises (GoEs) to ensure judicious utilization of government funds. The House Standing Orders, Eleventh Edition (as amended), place AMCON under the oversight jurisdiction of this committee.
Commitment to Best Practices
Alade’s administration is committed to continuous improvement in operational efficiency, transparency, and accountability. These principles are seen as fundamental to enhancing the Corporation’s effectiveness in fulfilling its mandate. The support from the National Assembly and the collaborative efforts with other stakeholders are crucial in achieving these goals.
The Asset Management Corporation of Nigeria (AMCON), under the leadership of Gbenga Alade, has made significant progress in debt recovery, achieving a total of N1.960 trillion in recoveries. With the support of the National Assembly and a commitment to best practices, AMCON is poised to continue its crucial role in stabilizing Nigeria’s financial system. As the Corporation navigates future challenges, innovative strategies and collaborative efforts will be key to maintaining its momentum and achieving its objectives.
