The Asset Management Corporation of Nigeria (AMCON) is urging judicial support and a tenor extension to enhance its debt recovery efforts, citing the critical role it plays in stabilizing Nigeria’s financial system. At a Senate Committee retreat on Banking, Insurance, and Financial Institutions, AMCON CEO Mr. Gbenga Alade emphasized the need for timely adjudication of over 3,000 pending cases and judicial adherence to the 60-to-90-day timeline stipulated by the AMCON Act. The corporation has recovered approximately N2.011 trillion to date, preserving jobs and businesses across Nigeria, but challenges persist with a significant debt portfolio still unresolved.
Alade highlighted that 70% of AMCON’s debt is owed by just 350 obligors, many of whom continue to live lavishly despite their liabilities. He warned against prematurely closing AMCON, arguing that unresolved non-performing loans could destabilize the banking sector and burden taxpayers with additional debt. The corporation has also disbursed N2.929 trillion to the Central Bank of Nigeria (CBN) through recoveries and contributions, further demonstrating its impact on the financial landscape.
Senate Committee Chair Senator Adetokunbo Abiru acknowledged AMCON’s success in mitigating the 2008 financial crisis and stabilizing the banking sector. However, with AMCON’s sunset clause approaching in 2026, he stressed the urgency of formulating new strategies for recovering the remaining N5 trillion debt. Drawing inspiration from models like Korea Asset Management Company (KAMCO), he urged stakeholders to focus on maximizing debt recovery to redirect resources to critical sectors like health, education, and infrastructure development.
