AMCON liabilities hit N5.7tn – CBN report

Asset Management Corporation of Nigeria’s liabilities stood at N5.72tn as of the end of the first half of 2022.

The Financial Markets Department of the Central Bank of Nigeria disclosed this in its ‘Half-year activity report 2022’ released on Thursday.

It stated that, “The carrying value of AMCON’s liabilities stood at N5.72tn at end-June 2022. Of this amount, AMCON notes, with an outstanding balance of N3.86tn, and the loan (Debenture) of N500bn accounted for 76.27 per cent of the liabilities. The notes are due to mature on December 27, 2023 and the N500bn loan is due for redemption on December 30, 2022.”

Recently, AMCON said in a statement that the Senate appealed for more support on its recovery drive

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It stated that the Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani, reiterated the willingness of the National Assembly to continually support the debt recovery efforts of Asset Management Corporation of Nigeria.

According to the statement, he said the support had become critical because AMCON remained a strategic national institution that played important and pivotal role in helping to stabilise the economy.

“AMCON is saddled with the tough assignment of recovering nearly N5tn owed the country by debtors who for years now hide under all manners of technicalities to tie AMCON up in different courts to stall repayment,” it stated.

Sani who was represented by Senator Olubunmi Adetumbi however commended the management of AMCON for remaining resolute.

While appealing to other agencies of the Federal Government and all stakeholders to support the recovery drive of AMCON, Sani also appreciated the contribution of the Inter-Agency Committee set up by the Federal Government sometime in 2019 to ensure that debtors are held accountable.

The work of the committee had brought many obligors to the negotiation table, it added.

It stated, “The committee is made up of heads and representatives of agencies including the Independent Corrupt Practices and Other Related Offences Commission, the Economic and Financial Crimes Commission, and the Nigerian Financial Intelligence Unit.

“Others are heads of the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, the Federal Ministry of Justice and AMCON. They were expected to review the status of the huge debts owed to AMCON, deliberate on practical, legal and other strategies for the recovery of the outstanding debts.”