Following insinuations that the Asset Management Corporation of Nigeria (AMCON) now operates the business that they took over, the corporation in a statements made available to Financial Edge in Lagos explained that its primary assignments as mandated by the Act establishing it empowers AMCON in recovery, restructuring and resolution of debts and not to run businesses.
According to the statement signed by Mr Jude Nwauzor Head, Corporate Communications, AMCON reiterated that their interventions in the country actually prevented the collapse of so many businesses, stressing that AMCON is going about its mandate for which it was created by the federal government in 2010 to manage the huge Non Performing Loans (NPLs) in the banking sector. AMCON has not in any way abdicated that assignment to run businesses as perceived by some people.
AMCON has never and will not run any business. But as facilitators, we encourage competent professionals to manage businesses. So it is important we correct this wrong perception in some quarters,â€ the statement added. In furtherance of the Corporation responsibility of acquiring Eligible Bank Assets (EBAs) and putting them to economic use in a profitable manner, AMCON, the statement stated is in receivership of about 50 businesses and more than 180 businesses under enforcement.
According to the Corporation, these interventions have saved so many businesses from going under, meaning that AMCON involvements is in order and therefore cannot be faulted. Some 400 obligors of AMCON account for more than N4.5 trillion, which is approximately 80 per cent of the total outstanding loan balance of the Corporation over twelve thousand accounts with obligors that have become recalcitrant over time despite obvious efforts of the Corporation.
In dealing with the challenge however, the Corporation has seriously increased the tempo of its recovery activities using firmer negotiation strategies as well as utilizing the special enforcement powers vested by the AMCON Act to compel some of its recalcitrant debtors especially those that are politically exposed and business heavyweights to repay their debts.