Nigeria: AMCON Engages International Asset Tracers to Recover N5 Trillion from Debtors

The Asset Management Corporation of Nigeria (AMCON) has launched an aggressive campaign to recover nearly N5 trillion in outstanding debts by enlisting the services of international asset tracers. These tracers will locate and recover assets hidden by non-compliant debtors, particularly those concealed offshore through Special Purpose Vehicles (SPVs).

This strategic move was announced by AMCON’s Managing Director/Chief Executive Officer, Mr. Gbenga Alade, during a media briefing in Lagos on Monday. Alade disclosed that under the new management, which assumed office about five months ago, AMCON has successfully recovered approximately N100 billion from several high-profile debtors and has also revisited the sale of some assets.

Alade emphasized the strong backing AMCON has received from key government figures, including President Bola Ahmed Tinubu, the Central Bank Governor, the Federal Ministry of Finance, the Attorney General of the Federation, and the National Assembly. This support has been instrumental in the corporation’s ongoing efforts to recover debts transferred to AMCON by banks during various phases of the Eligible Bank Asset (EBA) acquisition process.

Additionally, the CEO mentioned that the Chairman of the House Committee on Finance has committed to publicly naming and shaming obligors who have yet to settle their debts. This will take place at a major stakeholders’ conference planned before the end of the year. The conference is expected to gather senior officials from the Central Bank of Nigeria (CBN), relevant ministries, banks, and the judiciary to address the challenges posed by non-performing loans in the country.

Alade outlined four key sectors that the new management is prioritizing: oil and gas, power, telecommunications, and aviation. He expressed confidence that resolving asset-related issues in the oil and gas sector will enhance production, generate foreign exchange, and create employment opportunities. In just five months, AMCON has made significant progress with two assets in this sector.

In the power sector, AMCON has also achieved notable success, particularly with one of the largest distribution companies and an abandoned power project in Kaduna. A memorandum of understanding has been signed, and operations are expected to commence within the next six months. AMCON is also focusing on other power sector assets, particularly in Aba, where reliable electricity supply is crucial for small, medium, and large-scale enterprises.

Alade highlighted the potential impact of addressing power challenges in Nigeria, noting that some banks with around 400 branches nationwide spend up to N500 billion annually on diesel for generators. He believes that resolving power sector issues will significantly improve the overall business environment.

AMCON is also making strides in the telecommunications sector, with plans to revive dormant assets and bring them back into operation. In the aviation sector, the corporation is addressing challenges involving two airlines, with a goal of expanding Arik Airline’s fleet from three to eight aircraft by March 2025, a move that could help reduce airfares in Nigeria’s local aviation industry.