We Owe CBN More Than N4tn, Says AMCON

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The Asset Management Corporation of Nigeria has said it owes the Central Bank of Nigeria more than N4tn.

AMCON was established by the Federal Government in 2010 to buy bad debts from banks and ensure stability in the financial sector.

It said in a statement on Sunday that the debt owed to the CBN could rise to almost N7tn by 2024 at the current rate of inflation.

“There is a dire need for all sister agencies of the Federal Government of Nigeria to join forces to ensure that the economic saboteurs who intend to cripple the banking sector before AMCON was set up are compelled to repay the humongous debt that is weighing down the Nigerian economy,” the corporation said.

The Managing Director/Chief Executive Officer, AMCON, Mr Ahmed Kuru, was quoted as saying that the corporation had many legal issues in different courts with its obligors.

He said non-collection of the debts, currently in excess of N5tn, would have negative effect on the national resources.

He spoke at the two-day Annual Seminar for Justices of the Courts of Appeal jointly organised by the National Judicial Institute and Legal Academy in Abuja over the weekend, according to the statement.

Kuru was however appreciative of the Nigerian judiciary for sustaining the AMCON Task Force in the four divisions of the Court of Appeal to fast-track AMCON appeals.

The President of Court of Appeal, Justice Monica Dongban-Mensem and the Administrator of the National Judicial Institute, Justice R.P.I Bosimo, (retd.) called on the judiciary to realise the need for speed in dispensing cases involving the AMCON and its recalcitrant obligors.

They however maintained that that justice must be dispensed within the ambit of the law, according to the statement.

Justice Bozimo was quoted as saying, “The role of the judiciary in the execution of AMCON mandate cannot be overemphasised. This is understandable considering that the distinguished bench is indispensable to the realisation of the enormous powers conferred on the corporation by the AMCON Act.

“It is through these interactions that the judiciary will be sensitised on the complex role AMCON plays at ensuring the sustenance of the financial system stability in Nigeria.

“The level of financial stability currently enjoyed in the country is solely attributable to the role played by AMCON in offloading toxic portfolios from the balance sheets of banks thus enabling the banks to perform their intermediating role in the macro-economy.”

– Punch

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