AMCON Recovers N400 Billion From Bank Debtors

10 investors show interest in 3 nationalised banks

The Asset Management Corporation of Nigeria (AMCON) set up to help de –risk banks rescued from the brink of collapse by the Central Bank of Nigeria (CBN) has recovered over N400 billion owed the banks.


The corporation had come under criticism for failure to recover the debts since it was established. But Mustapha Chike-Obi, managing director of AMCOM has dispelled the insinuation. In an exclusive interview with BusinessDay, Chike-Obi said the corporation recovered a total of N400billion last year, and plans to recover N1 trillion this year.


He added that debtors were coming forward without being prompted, to pay up or restructure their debts. Impressed by this development, and to save itself the cost of litigation, AMCON is yet to go all out to acquire the collateral of the debtors.


For the chronic debtors who have refused to pay, he said, they will be made to honour their obligations, one way or another.


He affirmed that the country’s banking industry had been successfully reformed and was no more in crisis, following the CBN intervention and the actions of AMCON.


Oceanic Bank, Intercontinental Bank, AfriBank, Bank PHB, FinBank, Spring Bank and Union Bank were encumbered by heavy non- performing loans and could not perform their intermediatory roles, until AMCON took over their toxic assets in exchange for bond valued at about N3.00 trillion. AMCON was expected to recover the outstanding debts from the banks’ debtors.


Expressing satisfaction with the current performances of the three nationalised banks- Enterprise Bank, Mainstream Bank and Keystone Bank, he observed that it was too early to judge them, since they commenced business only in August last year. Already, AMCON has injected well over N600 billion into the three banks.


In confirmation of the performance of the three banks so far, eight foreign and local investors, including private equity investors, were currently showing interest in the three banks, he disclosed.


The final round of auditing of the three banks will be conducted to determine whether they will need a new level of capital injection or not, Chike-Obi said. The nationalised banks, according to AMCON’s managing director, now have what it takes to compete in the marketplace. To further demonstrate that there is space for the banks to excel, he stated that the economy has the capacity to accommodate at least 50 more banks, as long as they could be innovative and ready to explore new market frontiers.


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