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Ahmed Kuru: Changing the Narrative of AMCON
By Solomon Semaka.
For the avoidance of doubt, AMCON is an acronym for Asset Management Corporation of Nigeria. AMCON is a statutory body created by an Act of the National Assembly. The bill which created the body was signed into law by President Goodluck Jonathan on Monday, July 19, 2010.
According to a press release that was signed by M.M. Abdullahi, Head, Corporate Communications of Central Bank of Nigeria quoted President Jonathan thus; “the establishment of AMCON is a reflection of the Government’s commitment to safeguard the interests of depositors, creditors, and other stakeholders in the Nigerian financial system and in doing so rejuvenate the domestic economy.”
Though the Act has undergone amendments and the latest was signed into law by President Muhammadu Buhari in August 2019. The new AMCON Act has increased the powers of the corporation to recover debts owed to legacy banks.
Abata, Matthew Adeolu of the Department of Accounting, Lagos State University, Ojo in a paper in Global Journal of Contemporary Research in Accounting, Auditing and Business Ethics (GJCRA) An Online International Research Journal (ISSN: 2311-3162) 2015 Vol: 1 Issue 2 282 www.globalbizresearch.org with the title “Impact of Asset Management Corporation of Nigeria (AMCON) On the Securitisation in the Nigerian Banking Sector” has traced the necessitating factors of the establishment of AMCON to include the accumulation of non-performing loans (NPLS) of some Nigerian deposit banks, and governmental approach towards resolving these threats to banking industry performance and economic stability. Summarily, Abata has argued that “the rationale behind the establishment of AMCON is for the corporation to purchase the toxic assets from the banks and after the purchase the banks will have “clean” balance sheet.”
It is interesting to note that AMCON was a part of a grand strategy of the Central Bank of Nigeria during the Banking Sector stabilization process that begun in August 2009. At that time, after a special audit by the Central Bank of Nigeria and the Nigeria Deposit Insurance Commission (NDIC) of banks in Nigeria, nine banks were discovered to be thoroughly distressed, below minimum capital requirements and were heading toward bankruptcy – this is a part from the mountain of accumulated non-performing loans.
Therefore, the foregoing is an explanation that the establishment of AMCON was like a stitch in time which serves nine. The establishment now under Ahmed Lawan Kuru as the Chief Executive Officer and Managing Director who was re-appointed by President Muhammadu Buhari for a second term in office and confirmed by the senate of the Federal Republic of Nigeria in December 2020 has continue to work assiduously towards the stabilization of the Nigerian economy.
Under the watchful eyes of Kuru as the CEO/MD of AMCON, as of August 2020, Kuru appearing before a technical session of the senate committee on Banking Insurance and other Financial Institutions in Abuja revealed that the total Assets Under Management (AUM) was N136.73 billion and N112.03 billion worth of propriety assets.
As a corporation that was created as a key stabilizing and re-vitalizing tool aimed at reviving the financial system by efficiently resolving the non-performing loan assets of the banks in the Nigerian economy, AMCON has acquired Non-Performing Loans (NPLS) of various Eligible Financial Institutions (EFIs) in three different phases with the top 5 EFIs representing 58.18% of all purchased EBAs. A total of the summary of number of loans acquired stands at 12,537 placing the percentage of AMCON portfolios at 100.
It is important to analyse that based on the categorization of loans by their sizes by the Loan Management Team, loans that are over N10b are referred to as strategic and the percentage of strategic loans stands at 40% of a total of 100% with the three remaining categories scrambling for the 60%, thereby making the strategic loans the greatest percentage of AMCON portfolio.
One can but only imagine if AMCON was not in place what would have become of Nigerian economy. Even as it is in place, one cannot claim that the Nigerian economy is standing with her two legs. This is because, Non-Performing Loans (NPL) reduces banks liquidity, credit expansion, slow down the growth of the real sector with the direct consequences on the performance of banks and the economy as a whole (Abata, M.A 2015).
AMCON under the leadership of Ahmed Kuru has clearly demonstrated that there is no sacred cow to be spared in the quest of stabilizing the Nigerian economy. Many prominent Nigerians have had their asset taken over by AMCON. For example, Ben Murray-Bruce as a serving senator came under the sledge hammer of AMCON in 2017, and in that same year, AMCON purchased nearly N100billion debt of capital oil and Gas owned by Ifeanyi Ubah from several commercial banks.
It is sad to note that there are over 400 obligors of AMCON that accounts for more than N4.5 trillion which is approximately 80 percent of the total outstanding loan balance of the corporation’s over twelve thousand accounts with obligors that have become recalcitrant overtime despite obvious efforts of the corporation.
There is an urgent need to listen to the counsel of Hon. Sir Jones Chukwudi Onyereri, then Chairman, Banking and Currency of the House of Representatives that “… for all institutions that want to see Nigeria get out of the current economic situation in the country to support the effort of the Asset Management Corporation of Nigeria (AMCON) to resolve the huge debt it carries insisting that its resolution was capable of rebounding the economy”.
Similarly, as a way of helping to navigate the country out of recession, a two-time former Attorney General of the Federation and Minister of Justice, Chief Kanu Godwin Agabi SAN had also called on judges in the country especially the ones that handle cases concerning the Asset Management Corporation of Nigeria (AMCON) and its debtors to pile pressure on the obligors to repay the huge debts, which he said was capable of revitalising the economy if recovered.
It is also apt to adopt one of the recommendations of a study carried out by Abata in 2015 which “recommends that AMCON should be professionally managed, have skilled resource base and devoid of political interference. Adequate funding should also be provided while overhauling the country’s bankruptcy and foreclosure laws. There should also be a robust information and management systems, and transparency in operations and processes. As noted by Klingebel (2000), “in the Philippines and Mexico, the success of the AMCs was doomed from the start as governments transferred large amount of loans that had initially been extended by the originating banks based on political connections and/or fraudulent assets to the AMCs which are difficult to be resolved or to be sold off by a government agency. Both of these agencies did not succeed in achieving their narrow objectives.”
As Ahmed Kuru settles down for a second term of five years in office, he should be aware that he carries a burden of proving once again that he is a square peg fixed in square hole and must sustain the stabilization of the Nigerian economy so as not to betray the trust the president has in him.
Solomon Semaka, a public affairs commentator writes from Abuja.
The Socio-Economic Rights and Accountability Project (SERAP) has filed a lawsuit against Senate President Godswill Akpabio over the suspension of Senator Natasha Akpoti-Uduaghan. The group argues that the suspension is unlawful and violates her fundamental right to freedom of expression.
SERAP is seeking a court order compelling Akpabio to reverse the six-month suspension, reinstate Akpoti-Uduaghan, and restore all her legislative privileges. The organization also wants an injunction preventing the Senate from imposing further disciplinary actions against her for expressing her views.
Senator Akpoti-Uduaghan was suspended after she reportedly spoke without permission and rejected a new seat assignment in the Senate chamber. As part of her suspension, her salary and allowances have been withheld, and she has been barred from identifying as a senator.
In its suit filed at the Federal High Court in Abuja, SERAP contends that the suspension deprives Akpoti-Uduaghan’s constituents of political representation. The organization also argues that penalizing a senator for exercising free speech creates a chilling effect on other lawmakers.
“No one should ever be punished for speaking without permission,” SERAP stated. “The Senate should uphold the rule of law and protect human rights, not suppress them.”
The group cites constitutional provisions and international human rights treaties, including Section 39 of the Nigerian Constitution, the African Charter on Human and Peoples’ Rights, and the International Covenant on Civil and Political Rights.
SERAP maintains that the Senate Standing Orders cannot override constitutional guarantees of free speech. The lawsuit emphasizes that restricting a senator’s expression undermines democracy and violates Nigerians’ right to receive information and participate politically.
No date has been set for the hearing of the case.
Ahead of the 2027 elections, hundreds of members of market associations and numerous women groups in Kaduna state at the weekend, occupied Kaduna metropolis in a peaceful demonstration where they reiterated their loyalty and support to the administration of
Governor Uba Sani of Kaduna state and President Bola Ahmed Tinubu.
The protesters who alleged that they had bitter experiences during the El-Rufa’i administration, said they would remain where Governor Uba Sani stood and advised the citizens of Kaduna not to be deceived by doing the contrary.
They recounted their ordeals during the 8 years of the previous administration, alleging that hundreds of market shops belonging to individuals were either seized, demolished or confiscated, a situation that triggered ill health in many traders and business owners leading to paralysis and multiple deaths of their colleagues.
“We’ve been in the market for over 40 years and have never experienced the kind of set backs we suffered under the previous Governor.”
“A lot of lives were lost,a lot of finances were ruined by reason of his kind of policies. We are here to speak with one voice and say that anything that would kind of revive such kind of philosophy in Kaduna market, we don’t want it,” Daniel Audu Maigari, a stakeholder of the Kaduna Market associations, has said.
He explained that “this incumbent Governor began by healing the wounds, the wounds that were really severed by the former Governor. Governor Uba Sani has been doing so,so very well and that’s why we’ve been with our leader, Alhaji Abdurrahman Mohammed, who like Governor Sani,has been charting the right course, ensuring programmes and plans that will heal these wounds .”
He said there was never been a time they are having the impact of leadership in Kaduna market, like they are having now.
” Now we’ve lots of incentives, lots of policies that are driving us to progress .We are now standing with one voice to denounce anything that would reverse this,” he said.
Alhaji Daiyabu Ismail Mai Gwanjo, Chairman Stakeholders of the Kaduna State Market Traders associations, said on behalf of their leader,Alhaji Abdurrahman Mohammed, his EXCO and all trader leaders in the 23 Local Government Areas of Kaduna State, they have gathered to unilaterally declare an unalloyed support to Governor Uba Sani who had taken care of them and protected their interests.
According to him,” we have to say so,haven had the harrowing experience in the hands of the past administration. The scar still remains and many are yet to recover.”
“But when Almighty Allah sent Governor Uba Sani to us,he declared he would not do anything bad to traders because the world thrives on businesses.All the most cherished countries like China, Canada, UAE, India,are very proud of and supportive to their traders and other business persons.”
“Unfortunately, we found ourselves during the previous administration that neither showed empathy nor sympathy to traders. An approximate number of 36 markets were demolished at that time.None of these markets was completely rebuild ,till date,and we are suspicious of the collaboration between the previous administration and the market developers.”
“We are therefore calling on Governor Uba Sani, our Governor of sympathy and understanding, to look at this issue with a view to resolving it.We are with Uba Sani a hundred percent, ” he added.
Hajiya Hadiza Abdulaziz,a woman leader of the market association,said they have gathered in multitudes to reiterate their support to the APC and Governor Uba Sani who has tremendously supported the market men and women in Kaduna State.
” Most of the market women had no shops because the shops were collected. But now we give God the glory everybody has gotten their shops back and nobody will collect it again,” she said.
She expressed happiness that those making the market women not to achieve, had left the party and government.
“We’ve been crying, a lot of market women don’t have capital, they have been deceiving us.But now,I believe Governor Uba Sani is going to assist us,”she added.
The protesters later took to the streets ,displaying placards with various inscriptions denouncing the previous arrangements, and chanting slogans in support of President Bola Ahmed Tinubu, Governor Uba Sani and the All Progressives Congress, APC.
” Most of the market women had no shops because the shops were collected. But now we give God the glory everybody has gotten their shops back and nobody will collect it again,” she said.
She expressed happiness that those making the market women not to achieve, had left the party and government.
“We’ve been crying, a lot of market women don’t have capital, they have been deceiving us.But now,I believe Governor Uba Sani is going to assist us,”she added.
The protesters later took to the streets ,displaying placards with various inscriptions denouncing the previous arrangements, and chanting slogans in support of President Bola Ahmed Tinubu, Governor Uba Sani and the All Progressives Congress, APC.
Former President Olusegun Obasanjo has raised concerns over the selection process of traditional rulers in Nigeria, stating that criminal elements have infiltrated royal institutions. He lamented that individuals with questionable backgrounds, including drug addicts, vagabonds, bandits, and kidnappers, now hold positions of authority as traditional rulers.
Obasanjo made these remarks in his newly released book, Nigeria: Past and Future, unveiled last week. He criticized the rapid increase in traditional rulers, many of whom, he claimed, lack the training and moral integrity required for the role. According to him, this deterioration has weakened the institution’s ability to contribute positively to the nation’s socio-political stability.
“Today, there are criminals, drug addicts, vagabonds, bandits, and kidnappers as so-called traditional rulers,” Obasanjo stated, stressing that some have abandoned their cultural responsibilities and engaged in misconduct. He cited an example of a monarch allegedly involved in electoral malpractice, questioning the moral integrity of such leaders.
“How do we account for a traditional ruler snatching a ballot box at an election polling station and running away with it?” he queried.
Reflecting on the past, Obasanjo noted that traditional rulers once commanded immense respect, especially during colonial and early post-independence eras. However, he said, their influence has been diluted due to the lack of proper training and moral reformation.
“The class of traditional rulers with their distinction, honour, and dignity, as we knew them in the colonial days and early post-independence days, has been diluted and polluted,” he remarked.
Calling for urgent reforms, the former president stressed the need to restore the lost dignity of traditional leadership. He emphasized that rather than being a liability, traditional rulers should play a vital role in national development.
“That dignity, aura, and respect should be brought back, and traditional rulers should be an asset to Nigeria’s development and greatness, not a liability,” he asserted.
Obasanjo further called for moral rejuvenation among traditional rulers, particularly those from historically significant institutions. He maintained that if properly positioned, they could contribute significantly to Nigeria’s long-term progress.
“There is a need for moral re-armament among the traditional rulers—the ancient and historic ones. They can and should make meaningful contributions to the Nigeria of our dreams that will serve the purpose and interest of all,” he concluded.
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