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How banks’ loan defaulters almost wrecked Nigerian economy – AMCON reveals

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AMCON

The Asset Management Corporation of Nigeria (AMCON) has claimed that loan defaulters of Deposit Money Banks almost wrecked the Nigerian economy

AMCON, an agency of the federal government, disclosed that its intervention in the country’s aviation sector helped Nigeria to have a semblance of the aviation industry.

The Head, Corporate Communications, AMCON, Jude Nwauzor, explained that the corporation had to intervene in Arik Air and Aero Contractors.

Nwauzor said: “For Arik, the airline was owing nearly N300bn. The airline was almost dead and buried before we took over.”

He added that the corporation figured out that obligors on its books would have crashed the Nigerian economy if not for the intervention of the Federal Government through AMCON.

According to him,  “I don’t think any Nigerian should sit down and listen to any obligor that is in the books of AMCON because these are the people who wrecked this economy.

“They made sure it is difficult for people like you and I to borrow money in any bank to do anything meaningful. This is because the banks are now apprehensive to lend.”

 “And why is this so? It is because those people who call themselves investors will go and borrow money from the banks to run businesses and they will not pay back the loans.”

 “It is also important to state that it is because of AMCON’s intervention in the aviation sector that is why we still have a semblance of what you can call aviation in Nigeria.

“What is the lifespan of an average airline in Nigeria? It is less than 10 years. So where were the investors when the airlines come into operation and eventually die and nothing happens in terms of reviving or saving them?

“So it will be frivolous to accuse AMCON of taking over a business that would have died if not for the intervention of the corporation.”

 

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