The House of Representatives Committee on Banking and Other Ancillary Institutions has called for the creation of a judicial task force to expedite the legal proceedings against loan defaulters associated with the Asset Management Corporation of Nigeria (AMCON).
This demand came after AMCON’s Managing Director/CEO, Mr. Gbenga Alade, revealed that out of 12,743 loans acquired by the corporation, 350 debtors are responsible for over 80% of the total debt. Of these, 246 are currently involved in legal battles with AMCON.
The committee, led by Chairman Eze Nwachukwu, emphasized the need for immediate action to ensure these debtors meet their financial obligations, contributing to Nigeria’s economic recovery. Nwachukwu voiced his concern during an interview at AMCON’s 2024 retreat in Enugu, expressing frustration that these 350 individuals are hindering the nation’s economic progress by withholding collective resources.
“We cannot stand by and allow them to walk away with our nation’s resources,” Nwachukwu stated. “We have identified these debtors and will work on a resolution, including the formation of a judicial task force, to accelerate debt recovery.”
He criticized the prioritization of political cases over economic ones, questioning why economic challenges, which directly affect the country’s well-being, are often overlooked.
“Why should political cases receive more attention than the economic issues that impact our entire nation? We must take decisive action against these debtors, especially in times of economic hardship,” he added.
Earlier, Nwachukwu acknowledged AMCON’s vital role in stabilizing Nigeria’s economy, particularly during challenging periods. He stressed that as economic conditions evolve, there is a need to reassess strategies and strengthen AMCON’s capacity to remain a key player in maintaining economic stability.
The retreat, themed “Revitalising Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” provided an opportunity to reflect on AMCON’s journey and explore new approaches to managing distressed assets.
Nwachukwu highlighted the complexity of asset management, calling for innovative policies and strong legislative support to enhance AMCON’s effectiveness. He emphasized that revitalization requires a comprehensive reevaluation of AMCON’s operational framework to make the corporation more proactive and agile.
AMCON’s Managing Director, Alade, also shared the challenges the corporation faces, noting that it is currently involved in 1,865 court cases across various judicial levels, from the Federal High Court to the Supreme Court. He expressed frustration that many debtors exploit legal loopholes to delay proceedings, making it difficult for AMCON to recover debts.
Despite these challenges, Alade, represented by Mr. Lucky Adaghe at the event, reported that the corporation had contributed 34% to the funding plan as of December 2023, with the remaining 66% coming from cash redemptions, bond sinking funds, and contributions from banks and the Central Bank of Nigeria.
Alade revealed that of the 12,743 loans purchased, 350 obligors are responsible for over 80% of the total debt, with 246 of them currently engaged in legal battles with AMCON. He lamented that debtors often exploit legal technicalities to stall cases, hindering recovery efforts.
Regarding recoveries, he noted that AMCON had recovered N1.9 trillion to date. Of this amount, 43% was in cash, while the remainder came from the sale of bridged banks, proprietary shares, asset sales, rentals, and other financial activities.
