By Adedapo Adesanya

The Minister of Finance, Mr Wale Edun, has tasked the new board of directors of the Asset Management Corporation of Nigeria (AMCON) to carry out a sustainable exit framework and recovery of N4.7 trillion in debt, which includes non-performing loans acquired from banks and other financial institutions.

He gave the charge on Wednesday in Abuja during the inauguration of the new board, urging alignment with the government’s broader economic reform agenda.

The new AMCON board is chaired by Mr Bala Mohammed Bello. The Non-Executive Directors are Mr Yusuf Tegina, Mr Adeyemo Adeoye, Mr Charles Odion Iyiore, Mr Yahaya Ibrahim, and Ms Emily Chidinma Osuji.

“While AMCON was created as a temporary intervention, its winding down must be approached with caution and strategy,” he said.

“Nigerians look to AMCON not just as a recovery agency, but as a vehicle for transparency, accountability, and the efficient resolution of non-performing loans that continue to weigh down our banking system and public finances.”

It will be recalled that AMCON purchased 12,743 non-performing loans worth N3.797 trillion from 22 eligible financial institutions; AMCON’s intervention was funded by a debt obligation of N4.65 trillion, which is to be repaid to the Central Bank of Nigeria (CBN).

The corporation’s primary goal is to recover these debts and resolve the financial challenges facing the Nigerian banking system.

The Minister emphasized some of the key priority areas for the immediate attention of the new board to include enhanced asset, saying, AMCON’s current portfolio of unrecovered debts remained a matter of national concern and the Board must work assiduously to strengthen the Corporation’s asset recovery strategy, including through legal enforcement, restructuring, and the sale of assets.

On governance and accountability, he said “it is imperative that this new Board upholds the principles of good corporate governance, transparency in operations, and strict adherence to the rule of law.”

On the need for collaboration with stakeholders, he said the board must ensure strategic collaboration with relevant MDAs, the CBN, the Judiciary, and the National Assembly as a unified approach is essential to ensure that its recovery mandate is not undermined.

He said the reform agenda of President Bola Tinubu’s administration is cantered on economic stability, job creation, and private sector-led growth.

The Minister said the inauguration ceremony was not merely a procedural event, but “a defining moment in the continued effort of this administration to promote financial stability, enhance investor confidence, and reposition Nigeria’s financial institutions for long-term growth and sustainability.

“However, as we all know, the task of economic transformation is an ongoing journey. As our macroeconomic realities evolve, so too must the strategies we adopt to strengthen financial institutions, improve fiscal discipline, and unlock value from distressed assets. The role of AMCON is as critical today as it was at its inception—if not more so.”

In his remarks, the Managing Director and Chief Executive of AMCON, Mr Gbenga Alade, assured that, with the inauguration of the new board the recovery process would be enhanced.

By Aduragbemi Omiyale

Eurobond worth $125 million was recently sold to investors cutting across Africa, the United Kingdom, Europe, the United States, Asia, and the Middle East by Ecobank Transnational Incorporated (ETI).

The debt instrument was issued by the financial institution at an improved yield of 9.375 per cent. It is part of the company’s $400 million 10.125 per cent notes due October 15, 2029 and will be consolidated and form a single series.

Business Post reports that the net proceeds from the issuance of the paper will be used for general corporate purposes primarily to refinance upcoming debt maturities.

A statement from the firm disclosed that investor demand was robust, achieving a final orderbook oversubscription rate of more than 2x, with strong participation from asset managers, banks, and development finance institutions.

The joint lead managers and joint bookrunners for the exercise were Absa, Africa Finance Corporation, African Export-Import Bank, Mashreq, and Standard Chartered Bank, while the financial adviser was Renaissance Capital Africa, with Ecobank Development Corporation as the co-manager.

“This successful tap further strengthens ETI’s financial position in line with its strategic objectives and reflects the institution’s commitment to proactively manage its balance sheet by diversifying funding sources and extending the average debt maturity profile of the group,” the Chief Financial Officer of ETI, Mr Ayo Adepoju, said.

Also, the chief executive of the firm, Mr Jeremy Awori, said, “We are encouraged by the strong support received from international investors, which underscores their continued belief in Ecobank’s resilience and progress in executing our Growth, Transformation and Returns (GTR) strategy. This tap enhances our financial flexibility and further reinforces our presence in the global capital markets.”

By Aduragbemi Omiyale

The chief executive of Fidelity Bank Plc, Mrs Nneka Onyeali-Ikpe, has demonstrated strong confidence in the financial institution by making additional investment in the company.

The banking executive, on Monday, May 19, 2025, amid reports of a purported bankruptcy rumour over a Supreme Court judgement debt, acquired addition 18 million shares of the firm at N20.35 per unit.

In a notice to the Nigerian Exchange (NGX) Limited on Tuesday, it was disclosed that the transaction was carried out a day earlier at the exchange.

The total value of the purchase, according to the disclosure, was worth about N366.3 million, underscoring her unwavering confidence in the organisation despite the panic created by the reports.

Mrs Onyeali-Ikpe’s latest acquisition is not an isolated gesture, as between November 21 and 22, 2024, she purchased 15 million shares worth N239.4 million, and subsequently added another 10 million shares valued at N157.9 million on November 26 and 27, 2024, reflecting a consistent pattern of personal commitment to the bank’s long-term success.

Her continued investment in Fidelity Bank during a period of legal scrutiny exemplifies strategic leadership and personal commitment.

These actions not only reinforce investor confidence but also underscore the bank’s robust financial standing and resilience.

As the institution looks to closing out the legal process as mandated by the court, stakeholders can take solace in the demonstrated strength and stability at the helm of Fidelity Bank.

The legacy debt in question involved the defunct FSB International Bank, which Fidelity Bank acquired in 2005.

The lender gave a $3 million loan to G. Cappa Plc in 2002 and was secured with mortgage on a property located in Ikoyi, Lagos, but the it defaulted on the repayment of the credit facility and in a bid to prevent FSB from selling the mortgaged property to repay the loan, G. Cappa commenced an action against FSB at the Federal High Court, Lagos, to stop the sale.

The Federal High Court in its judgment ruled that the FSB as legal mortgagor rightfully sold the leased interest in the property to Sagecom in 2011, but declined to order vacant possession of the property and directed the issue of vacant possession to the Lagos State High Court.

In the meantime, G. Cappa remained in possession of the property and kept collecting rents therefrom, and in 2011, Sagecom instituted an action against the bank and G. Cappa at the Lagos State High Court seeking damages against lender for breach of contract and for possession of the property.

The claim was for liquidated damages calculated as rentals on the several component apartments in the property plus interest on same over different time frames.

On Monday, it was reported that Fidelity Bank has been asked by the apex court to pay the company N225 billion as damages over the transaction.

Reacting to this, the bank said it has approached the court for interpretation of the judgement because of some “significant ambiguities” resulting in difficulties in calculating the actual financial liability to G.Cappa due to “the exchange rate as of 2005 when the incident and cause of action arose,”