…as sale of bridged banks, property assets, rentals top debt recoveries
Asset Management Corporation of Nigeria (AMCON) has disclosed that it repaid N2.929 trillion to the Central Bank of Nigeria (CBN) from 2013 to 2023, including contributions to the sinking fund by Deposit Money Banks (DMBs) in the country and the recoveries made by the corporation within the reference period.
It should be noted that AMCON was set up in 2010 as a financial institution for the stabilising and re-vitalizing the financial system through the adoption of efficiency in resolving the non-performing loan assets of the banks within the Nigerian economy.
Gbenga Alade, managing director of AMCON, made the disclosure while interacting with the House of Representatives Committee on Banking and Other Ancillary Institutions, Tuesday in Abuja, the nation’s capital.
Alade added that the corporation also recovered N1.96 trillion from debtors mostly from the sale of bridged banks, property assets, among others.
“To date, the corporation has made recoveries in the sum of N1.960 trillion. Of the total recovery, cash recovery represents 43 per cent; sale of bridged banks ,13 per cent; sale of proprietary shares ,11 per cent; clawback and repurchases, nine per cent; sale of property assets and rentals, nine per cent; investment income, seven per cent, while others represent about seven per cent,” Alade said.
Gbenga Alade was confirmed as the new AMCON managing director by the Senate in March 2024. Other board members confirmed by the Senate included Adeshola Lamidi, Lucky Adaghe as well as Dr Aminu Mukhtar Dan’amu as executive directors.
Meanwhile, the House of Representatives has charged AMCON to improve its loan recovery efforts through the adoption of innovation and best practices in asset recovery, management, transparency, accountability in a bid to recover about N5 trillion outstanding loans from obligors.
The House, through Honourable Eze Nwachukwu Eze, chairman, House of Representatives on Banking and Other Ancillary Institutions, made this declaration when the committee paid a courtesy visit to the corporation on Tuesday, as a form of familiarisation with the new management team of AMCON.
“Moreover, we recognize that AMCON cannot achieve its mandate in isolation. Collaboration with the National Assembly, which this Committee represents, other financial institutions, regulatory bodies, and other stakeholders is crucial. As representatives of the people, we are committed to fostering an enabling environment that supports AMCON’s efforts and promotes the stability and growth of our financial system,” Hon. Eze said.
He added: “As we navigate through the current economic landscape, marked by global uncertainties, and domestic challenges, the role of AMCON becomes even more critical. Resolving non-performing loans, recovering debts, and managing acquired assets are key to ensuring the stability and resilience of our banking sector. It is essential that AMCON remains steadfast in its mission, adopting innovative strategies and leveraging technology to enhance its operations.”
As of today, AMCON has a number of assets for sale in prime locations across the country, which upon sale, will enhance loans recovery and other obligations owed by defaulters. Some of the assets for sale currently include a property at Airport Junction along Sokoto-Kebbi Maiduguri Road in Sokoto State, and a property located at numbers 45, 46 and 48, Langfield Residential/Commercial Layout, Bandang Area, Along Bukuru/Yakubu Gowon Express Way, Jos South LGA, Plateau State.
The Jos property is a purpose-built single storey (2 floors) of commercial block of lock up shops built on plot 45/46 (1,901.7sqm) while plot 48 (1,072.5sqm) is on the rear side and undeveloped. The total area of land is approximately 2,974.22sqm. The subject property is in a predominantly commercial neighbourhood, as well as a high rise build of 13 floors located at 106/108 Broad Street, Lagos Island in Lagos State, among others.
AMCON in 2023 realised N108 billion as profit, an increase of 202 percent when compared to N34.73 billion profit realised in 2022.
“Its total liabilities dropped from N6.282 trillion in 2022 to N5.739 trillion in 2023 due to repayments of N500 billion Central Bank of Nigeria loan. It also achieved 89 per cent of its revenue budget, with recovery of N125.2 billion comprising N81.65 billion from collections from obligors, N17.8 billion, share sales, N15.5 billion reinvestment income, N6 billion proceed from property sale, N3.8 billion dividend income and N0.5 billion from rental income,” the corporation stated.
