AMCON Restructures N1 Trillion Loans

16 Jan 2013

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Mr. Mustafa Chike-Obi

Obinna Chima

As part of efforts to recover its debt, the Asset Management Corporation of Nigeria (AMCON) said yesterday it had restructured about N1 trillion loans.

The amount represents a significant increase of N572 billion, compared to the N428 billion loans restructured for 518 obligors as at 2011. AMCON has a total of 13,000 debtors.

Managing Director/Chief Executive Officer, AMCON, Mr. Mustafa Chike-Obi, disclosed this in an exclusive chat with THISDAY in Lagos on Monday.

Although Chike-Obi said that the corporation had made strong recovery in recent times, he declined to comment on the amount of debt recovered. This, he said, was as a result of a directive from the Central Bank of Nigeria (CBN).

The AMCON boss explained: “We have 13,000 debtors and have about 100 staffs working on them. So, we are doing 100 restructuring a day. So, the amount of debt recovered and restructured is always changing. But we have restructured about N1 trillion loans.

“The CBN wants us to be using the word restructured loans because recovery is cash you actually have on your hands. But when you restructure and the person is performing, they (CBN) don’t want you to use the word recovered, but restructured-performing loans.”

AMCON had last month informed THISDAY that 11 per cent of its debt had been restructured as at December 2011.

Executive Director, Finance and Operations, AMCON, Mrs. Mofoluke Dosumu, had then said that the corporation had recovered N83 billion in cash while other cash receipts from its assets were put at N49 billion.

“The publication by the central bank was to enable those people to come and sit down with AMCON and settle their debt. When you cannot borrow from any bank in Nigeria, I doubt if HSBC or Citibank in Europe would be willing to lend you to continue that business. So, you have to sit down with AMCON and settle.

“So, no matter the obstacles that are put on our way, AMCON would ensure that its debts are fully recovered. We have the support of the CBN and the Ministry of Finance,” she had said.

The CBN had in a move aimed at strengthening financial stability and instilling discipline in the banking sector, last year, blacklisted 113 companies as well as their principal shareholders and directors where the outstanding value of the loans purchased by AMCON amounted to N5 billion or more from taking further credit from banks, until full liquidation of the agreed indebtedness.

Tags: Business, Nigeria, Featured, AMCON, Loans

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