Bad Loans: How We Helped Depositors Recover N3.7tr—AMCON

By Dipo Olowookere

Managing Director of Asset Management Corporation of Nigeria (AMCON), Mr Ahmed Lawan Kuru, has revealed how the agency helped depositors retrieved about N3.7 trillion they would have lost if not for government’s intervention.

Mr Kuru made this known on Thursday when he paid a courtesy visit to the Acting Chairman of Economic and Financial Crimes Commission (EFCC), Mr Ibrahim Magu.

The AMCON boss informed his host that his agency also ensured 15,000 jobs were saved due to its intervention in the banking sector in 2009/2010.

“The corporation borrowed money from the financial system and bought 13,000 non-performing loans at the cost of N3.7 trillion from 22 banks and also injected N2.3 trillion as financial accommodation to 10 banks in order to bring stability and avoid systematic failure”, Mr Kuru said.

He however listed some of the challenges hampering the corporation’s debt recovery efforts to include the judicial process, non-cooperation of debtors, concealment of assets, irregular documentation by banks and other financial institutions, forgery and alteration of financial records.

Mr Kuru further expressed satisfaction with the performance of the EFCC/ AMCON desk, saying “ever since the set-up of the AMCON desk, we have enjoyed tremendous support of the team which has led to recovery and increased the number of obligors coming forward to AMCON looking for a resolution out of the situation they are in.”

He added that the importance of the EFCC to the actualization of AMCON mandate cannot be overstated as the commission is “about one of the few organizations that have the power to request or demand information from some of these financial institutions and get response.”

In his response, the EFCC boss assured AMCON that the anti-graft agency will support the moves to recover toxic assets and boost for the nation’s economy.

According to Mr Magu, “It is in the interest of this country that we support you and work with AMCON.”

He blamed the incidence of bad loans especially in the banking sector on insider dealings, adding that it is about time bankers are held liable for their indiscretion.

He expressed the commission’s willingness to strengthen the team already working on AMCON related cases.