The Asset Management Corporation of Nigeria (AMCON) says it has recovered N1.48 trillion out of the N4.158 trillion from bank debtors.
Ahmed Kuru, AMCON managing director, announced this during the 2021 retreat of the senate committee on banking insurance and other financial institutions in Kaduna on Monday.
Kuru said the agency still has 7,902 outstanding obligors with a total outstanding loan of above N3.1 trillion.
He explained that 350 obligors alone account for over N2.053 trillion which is more than 70 percent of the total outstanding amount.
“All our action is geared towards settling our obligation with the CBN. After recovery and disposal, funds are paid directly into our CBN account,” Kuru said.
“Recovery and disposal of assets have so far contributed above N1.270 trillion towards settling our obligation.
“The economy and the banking industry are not growing at the expected rate thereby creating a huge gap in our recovery activities.
“At the recovery rate we are currently experiencing, we may not be able to cycle out even in the next five years. Additionally, the interest rate AMCON is shouldering on its bond to the CBN is making it difficult for the recovery rate to grow.
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“There is no easy way to recover money, no easy way. It is always difficult for both sides. One doing a hard job and the other responding to a hard situation.
“Let us not forget that these loans have remained uncollected for minimum of 10-15 years. However, we have responsibility to collect and shall continue to pursue them within the purview of the law.”
Uba Sani, chairman of the senate committee on banking insurance and other financial institutions, said the senate would push and ensure that both the Nigerian Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) collaborate and contribute more to support AMCON’s debt recovery activities.
In April 2021, the senate passed the AMCON amendment bill to strengthen the agency in the area of loan recovery.
The amendment bill empowers AMCON to, amongst others, take possession, manage or sell all properties traced to debtors, whether or not such assets or property is used as security/collateral for obtaining the loan in particular.