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The Asset Management Corporation of Nigeria (AMCON) has announced plans to collaborate with international asset tracers to identify and recover assets linked to chronic debtors, stepping up its efforts to reclaim significant debts owed to the country.
At a media briefing in Lagos on Monday, AMCON’s Managing Director and Chief Executive Officer, Gbenga Alade, outlined the corporation’s new strategy. While continuing to track assets within Nigeria, AMCON is now set to expand its reach by employing global asset tracers to locate assets that debtors have hidden abroad.
“AMCON has the mandate to trace and recover the personal assets of obligors, regardless of their location worldwide,” Alade stated. “Many of these debtors have cleverly moved assets out of Nigeria, making them difficult to track. This is why we are bringing in international asset tracers. With their expertise, we can pursue these assets, no matter where they are or how well concealed.”
Alade emphasized the resolve of AMCON’s new leadership to prevent debtors from evading repayment of what is owed to Nigeria. “Even if AMCON ceases operations, these individuals should not be allowed to abscond with Nigeria’s money. This is not AMCON’s money; it belongs to the taxpayers. We cannot let these debtors continue their extravagant lifestyles with funds meant for the Nigerian people,” he asserted.
AMCON, which was established to manage and resolve the non-performing loan assets of Nigerian banks, has historically focused on making these assets profitable rather than liquidating them. Alade reaffirmed this approach, stating, “AMCON is not in the business of selling assets but managing them to generate revenue and wealth for Nigerians. We only resort to selling assets when debtors relinquish their repayment obligations and offer their assets as settlement.”
AMCON recently reported a profit of N108.4 billion for 2023, a significant increase from N34.7 billion in 2022. This growth was largely driven by a sharp reduction in operating expenses, which fell from N138.6 billion to N44.9 billion.
Regarding Polaris Bank, Alade expressed confidence in resolving issues related to its bad loans, which are managed by AMCON. “Polaris Bank will be addressed in line with the new capital requirements. If the bank is unable to raise the necessary capital, mergers and acquisitions might be considered. AMCON’s focus remains on recovering bad loans, and our mandate gives us the authority to take actions that other banks cannot,” he explained.
The Central Bank of Nigeria recently introduced new capital requirements for banks operating within the country, a move that could impact the future of institutions like Polaris Bank.
Meanwhile, the House of Representatives Committee on Banking & Ancillary Institutions has urged AMCON to intensify its efforts to recover the nearly N5 trillion debt owed to it. At a recent retreat in Enugu State, committee chairman Nwachukwu Eze highlighted that recovering these debts would significantly enhance government revenue and support President Bola Ahmed Tinubu’s administration in fulfilling its promises to Nigerians.
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