The Asset Management Corporation of Nigeria (AMCON) said, it had so far recovered over N1.8 trillion even as it expected to record over N70 billion in profit at the end of the 2023 financial year.
Managing director and chief executive of the Corporation, Mr Ahmed Lawan Kuru speaking at the first interactive session with members of the 10th Senate Committee on Banking, Insurance and Other Financial Institutions, noted that, the corporation had remained a profit-making organisation aside from delivering on the recovery mandate for which it was created by the federal government ab-initio. The committee is chaired by Senator Mukhail Adetokunbo Abiru.
The AMCON boss while providing an overview of the corporation’s activities, covering enforcement, asset management, and funding model said that even though AMCON was created as a bad bank with various challenges beyond its control, the corporation has remained a profit-making organisation aside from delivering on the recovery mandate for which it was created by the federal government ab-initio.
AMCON made a profit of N23.97 billion in 2020, which increased to N34.65 billion in 2021. In the year 2022, the corporation said it made N58.59 billion profit.
The loss captured in the management account as of 30th September 2023 was attributed to interest accrual on the Central Bank of Nigeria (CBN) loan note that had been charged as an expense to its profit and loss account while the corresponding credit, the receipts for external recoveries, which is estimated to be about N359 billion was yet to be recognised and captured in the Corporation’s balance as at that time.
“This is usually recorded in the last month of the financial year, December, before closing the books. Consequently, the Corporation is projected to close with over N70 billion in profits by December 2023 once the receipts from the sinking fund are reflected in its Profit or Loss Account accordingly,” he said in a statement that was issued by the corporation.
The CBN had conducted a special examination of 24 banks as a result of which critical intervention was required at that time. It was after that exercise that the AMCON Bill passed in June 2010 was signed into law on July 19, 2010.
Since its enactment in 2010, the National Assembly has amended the AMCON Act thrice – in May 2015, July 2019, and November 2021 respectively to strengthen the powers of the Corporation to deliver on its tough mandate of debt recovery.
