‘AMCON Has Repaid N3.6tn to CBN, Achieves Over 87% Recovery Performance’

Nume Ekeghe

The Managing Director and CEO of the Asset Management Corporation of Nigeria (AMCON), Mr. Gbenga Alade, has announced that the corporation has repaid about N3.6 trillion to the Central Bank of Nigeria (CBN) since its creation in 2010.

Speaking at a media parley in Lagos, Alade highlighted AMCON’s impressive debt recovery record, noting that the corporation has achieved over 87 per cent recovery based on the balance at purchase. 

He described this as a performance that surpasses many government-owned asset management corporations worldwide, despite Nigeria’s notoriously difficult debt-recovery environment.

Alade explained that AMCON initially paid N1.7 trillion to acquire toxic assets from banks. Since then, it has repaid N3.6 trillion, though it still owes about N3 trillion. He emphasized that the corporation’s intervention helped stabilise the banking sector by removing toxic assets from balance sheets and injecting fresh funds, in line with global insolvency restructuring principles.

According to him, this approach restored depositor confidence, ensured banks could meet their obligations, and allowed AMCON to manage the acquired Eligible Bank Assets (EBAs) until disposal.

Alade said: “As part of our recovery strategy, we have commissioned some foreign asset tracers who will help us locate where some of these obligors have hidden their assets across the globe.”

Speaking on the financial performance of the corporation since he assumed duties as the helmsman, he said the corporation recorded total revenue of 156.25 billion and total operating expenses of N29.04 billion, remarking that total operating revenue/revenue ratio was 19 percent.

Alade said projected total revenue for 2025 will be N215.15 billion while projected total operating expenses will be N29.06 billion with total operating/revenue ratio will be in the region of 13.5 per cent. 

“It is important to stress that the corporationhas done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world. Based on the balance at purchase, AMCON outperformed other Asset Management Corporations all over the world by achieving over 87% in recoveries despite the unique challenges associated with debt recovery in Nigeria. The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s only achieved 58%,” he said.