AMCON facing over 3,000 court cases  – MD

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AMCON facing over 3,000 court cases  – MD

The Managing Director of Asset Management Corporation of Nigeria (AMCON), Mr. Gbenga Alade, has said that the organisation currently has over 3,000 courts cases filed to stop its recovery of over N5 trillion debt.

Alade, who made this known during a Stakeholders’ Retreat with the Senate Committee on Banking, Insurance, and other Financial Institutions, urged the judiciary to give priority in dispensing the cases.
He said the cases ought to have been completed within 60 to 90 days as stipulated in the AMCON Act.

“We have more than 3,000 cases in various courts around the country; from the court of first instance to the Supreme Court. We have continued to deepen our interaction with the leadership of these courts.

“Our hope is that AMCON cases would be adjudicated within the time limit enshrined in the AMCON Act,” the managing director added.

He urged the Senators to sensitise government agencies not to engage  contractors who have outstanding liabilities with AMCON.

Alade, however, said that AMCON had recovered about N2.011 trillion comprising 44 per cent cash and 56 per cent from sale of assets, clawback, and repurchases, among others.

He added that the corporation had disposed assets valued at N651 billion since its inception 14 years ago, while N2.929 trillion was paid to the Central Bank of Nigeria (CBN) between 2013 and 2023.

By law, AMCON is scheduled to wind down in 2026, but Alade said it would be premature to close it, so as to avoid resurgence of non-performing loans and potential bank failures.

In his remarks, Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance and other Financial Institutions, said efforts must be made to recover tax payers’ money.

He said: “Admittedly, the setting up of AMCON has succeeded to a large extent, in not only stabilizing the banking industry given that the purchase of Eligible Banks Assets (EBA) reinjected the much-needed liquidity into the banking system, but also helped in restoring confidence in the financial sector.”

“I am aware that the AMCON Amendment Act of 2021 extended the life of AMCON for another five years although it provides that the current tenor may be extended by a resolution of the National Assembly. So, we now stand at a pivotal moment where we must transition beyond AMCON as it is nearly impossible for the Corporation to recover substantial loans by 2026 when it is expected to wind down.”

“Regrettably, despite 14 years of its existence, AMCON still carries massive loans in her portfolio put at circa N5 trillion with a significant portion of the AMCON debt due to the CBN.”

“So, I expect that at this retreat, we should come up with more effective options for dealing with outstanding loans beyond the strategies already adopted, just like the Korea Asset Management Company (KAMCO).”

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