AMCON recovers N307bn debt in two years

Between 2020 and 2021, the Asset Management Corporation of Nigeria recovered debts totaling N307 billion. The Federal Government has received a report from an inter-agency committee established to recover debts owed to the Asset Management Corporation of Nigeria, which calls for strict enforcement of pertinent laws, including the AMCON Act, to make sure that recalcitrant debtors are barred from participating in government projects and contracts without prior approval from AMCON.

They made this statement on Wednesday at the Presidential Villa when presenting the Committee’s interim report to Vice President Yemi Osinbajo, SAN, who is also the Chairman of the Independent Corrupt Practices Commission.

The government would review it and take appropriate action, according to a statement made by Laolu Akande, Senior Special Advisor to the Vice-President on Media and Publicity. Prof. Osinbajo noted that the issue of AMCON debtors conducting additional business with government agencies was a matter of due diligence and that there would need to be compliance with the law.

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According to Prof. Owasonoye, who delivered the report to the vice president, the Committee specifically recommended that moving forward, “all AMCON debtors must not be allowed to transact business or enjoy patronage with any government agency whatsoever, except clearance is obtained from AMCON on the debt status of such obligors.”

He stated that “between 2020 and 2021, AMCON made significant recoveries which are highlighted in the report. Within the period under review, AMCON witnessed a 10 percent growth in the recovery performance across various asset classes. For instance, in the year, 2020, the sum of N146 billion was recovered, while in 2021 the sum of N161 billion was also recovered. The recovery outlook for 2022 is also looking positive and the Committee will not relent in its effort to engendering more recoveries.”

He added that the “Committee will continue its assignment with the institution of bankruptcy proceedings, tax infraction, inquiry as well as other strategies to ensure the obligors are brought under the recovery net of AMCON.”

The committee’s mandate, which was established in September 2019, included, among other things, reviewing the status of the debt owed to AMCON, gathering information about the relevant debtors and their current situation, and debating practical, legal, and other strategies for the recovery of the unpaid debt.

The Chairman also mentioned that the Committee got right to work after its establishment, but that the COVID-19 global epidemic inexorably slowed down both activity and enforcement.