The Asset Management Corporation of Nigeria (AMCON) has announced plans to engage international asset tracers to uncover and seize hidden assets of persistent bad debtors worldwide. This effort aims to recover significant funds held by individuals and companies.
AMCON reports that about 20 individuals and companies are responsible for more than two-thirds of the outstanding debts, totaling approximately ₦5 trillion. The international asset tracers will be tasked with locating special purpose vehicles (SPVs), nominees, custodians, and other methods used to hide assets, and will enforce recovery orders on such hidden assets.
This initiative complements the renewed efforts by AMCON’s new management to track and seize domestic assets of major debtors. In February 2024, President Bola Tinubu appointed new management for AMCON to tackle the lingering debt crisis.
Mr. Gbenga Alade, Managing Director of AMCON, outlined the new management’s blueprint to senior media executives in Lagos. He promised transparency, fairness, and optimal value in the debt-resolution process, aiming to enhance the overall well-being of the economy.
Since his appointment in April 2024, Alade reported that the new management has collected approximately ₦100 billion from high-profile debtors and revised the sale of some assets. Notably, a deal previously concluded at a lower value was reopened and closed at more than 100% of its original worth, showcasing the new management’s global experience and expertise.
Alade highlighted four key sectors for focus: oil and gas, power, telecommunications, and aviation. Significant progress has been made with a major distribution company and an abandoned power project in Kaduna, with operations expected to commence within six months. AMCON is also addressing power sector issues in Aba, where reliable power supply is crucial for businesses.
Alade emphasized the impact of improving the power sector, noting that some banks spend approximately ₦500 billion annually on diesel for generators. Addressing this issue could significantly enhance the business environment.
In the oil and gas sector, resolving asset issues is expected to boost production, generate foreign exchange, and create jobs. The corporation is also working to revive dormant assets in the telecommunications sector.
In aviation, AMCON is addressing issues with two airlines, aiming to increase Arik Airline’s fleet from three to eight aircraft by March 2025, which could help reduce local airfares.
Alade revealed that the Chairman of the House Committee on Finance plans to name and shame obligors who have yet to repay their debts at a major stakeholders’ conference later this year. He also plans to organize a conference with senior officials from the Central Bank of Nigeria (CBN), relevant ministries, banks, and the judiciary to discuss non-performing loan challenges.
AMCON remains committed to resolving non-performing loans and stabilizing Nigeria’s financial system.
Author
