AMCON has recovered over N1.8trn
The Asset Management Corporation of Nigeria on Wednesday disclosed that it has so far recovered over N1.8 trillion.
According to a statement by its spokesperson, Jude Nwauzor, the figures were disclosed by the Managing Director/Chief Executive Officer, Ahmed Kuru, during an interactive session with members of the 10th Senate Committee on Banking, Insurance, and Other Financial Institutions at the National Assembly Complex.
While speaking to the Committee chaired by Mukhail Abiru, Mr Kuru highlighted the challenges faced by AMCON as a “bad bank” and underscored its resilience as a profit-making organization.
He said despite challenges beyond its control, AMCON has consistently delivered on its recovery mandate since its inception.
“AMCON made a profit of N23.97 billion in 2020, which increased to N34.65 billion in 2021. In the year 2022, the Corporation made N58.59 billion profit,” he said.
He attributed the recent loss captured in the management account as of 30 September to interest accrual on the CBN loan note charged as an expense.
However, a substantial receipt from external recoveries, estimated at N359 billion, is anticipated to be recognized in the December financial statement, projecting AMCON to close with over N70 billion in profits for 2023.
The AMCON Act, enacted in 2010, has undergone three amendments to empower the corporation in debt recovery.
Mr Kuru said the corporation’s pivotal role in addressing the fallout of the CBN’s special examination of 24 banks is evident in its purchase of 12,743 Non-Performing Loans or Eligible Bank Assets valued at N3.797 trillion from 22 Eligible Financial Institutions.
READ ALSO: Senators fume, demand scrapping of AMCON over N5trn liabilities
Explaining the funding model of the Corporation, Mr Kuru said that “AMCON’s intervention activity was funded by debt obligation of N4.65 trillion (as of 31st December 2018), which is to be repaid, from internal and external sources to the CBN by 2024. It is worth knowing that, at conception, it was envisaged that AMCON being a loss minimisation entity would repay 30 per cent of the obligation, whilst the balance is expected from external recovery sources as provided in the Amcon act.”
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The Asset Management Corporation of Nigeria on Wednesday disclosed that it has so far recovered over N1.8 trillion.
According to a statement by its spokesperson, Jude Nwauzor, the figures were disclosed by the Managing Director/Chief Executive Officer, Ahmed Kuru, during an interactive session with members of the 10th Senate Committee on Banking, Insurance, and Other Financial Institutions at the National Assembly Complex.
While speaking to the Committee chaired by Mukhail Abiru, Mr Kuru highlighted the challenges faced by AMCON as a “bad bank” and underscored its resilience as a profit-making organization.
He said despite challenges beyond its control, AMCON has consistently delivered on its recovery mandate since its inception.
“AMCON made a profit of N23.97 billion in 2020, which increased to N34.65 billion in 2021. In the year 2022, the Corporation made N58.59 billion profit,” he said.
He attributed the recent loss captured in the management account as of 30 September to interest accrual on the CBN loan note charged as an expense.
However, a substantial receipt from external recoveries, estimated at N359 billion, is anticipated to be recognized in the December financial statement, projecting AMCON to close with over N70 billion in profits for 2023.
The AMCON Act, enacted in 2010, has undergone three amendments to empower the corporation in debt recovery.
Mr Kuru said the corporation’s pivotal role in addressing the fallout of the CBN’s special examination of 24 banks is evident in its purchase of 12,743 Non-Performing Loans or Eligible Bank Assets valued at N3.797 trillion from 22 Eligible Financial Institutions.
READ ALSO: Senators fume, demand scrapping of AMCON over N5trn liabilities
Explaining the funding model of the Corporation, Mr Kuru said that “AMCON’s intervention activity was funded by debt obligation of N4.65 trillion (as of 31st December 2018), which is to be repaid, from internal and external sources to the CBN by 2024. It is worth knowing that, at conception, it was envisaged that AMCON being a loss minimisation entity would repay 30 per cent of the obligation, whilst the balance is expected from external recovery sources as provided in the Amcon act.”
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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