AMCON recovers 112% bank loans above 80% target

The Asset Management Corporation of Nigeria (AMCON) has recovered about 112 percent of the total cost of the loans of the banks it acquired, surpassing 80 percent target it set earlier, Chike Obi, managing director/CEO, has said.

AMCON capitalised the banks with N2.3 trillion and has to get that back from the sinking fund.

Speaking on ‘The Impact of AMCON on the Nigerian Economy’ at a symposium organised by Bank Directors Association of Nigeria
(BDAN) in Lagos, Obi said continuing contribution of banks to this fund is an aberration that brings back almost the entire cost of
intervention back on the banks.

He said if AMCON is to successfully deliver on its mandate, some issues would have to be clarified and addressed.

Such issues, according to him, include a well defined AMCON lifespan, clear AMCON mandate, independence from political interference, targets, transparency, sinking fund, and supportive legal framework.

“As structured today and as it operates, AMCON cannot deliver on its mandate effectively and efficiently, and that will vitiate the impact it is expected to have on the banking industry on the one hand, and the national economy on the other”, he said.

Obi summarized the milestones that have been achieved by the corporation since its establishment in 2010 to include restructuring of about N862 billion (or 50 percent) of AMCON’s NPL portfolio, of which, N432.223 billion was collected in cash and property at a recovery rate of over 100% of purchase price, and strengthened the banking system for enhanced performance.

HOPE MOSES-ASHIKE