We are not running any business – AMCON
The Asset Management Corporation of Nigeria (AMCON), weekend, said that its primary assignments is to recover, restructure and resolve bad debts, not to run businesses.
AMCOM made the clarification to dispel public misconceptions after its recent confiscation of some assets formerly belonging to some bad debtors.
A statement issued by AMCON said that AMCON’s intervention in the country prevented collapse of many businesses, maintaining that the corporation, created in 2010, was within its mandate of managing huge Non Performing Loans (NPLs) in the banking sector. AMCON has not abdicated its assignment to run businesses as perceived by some people, it said.
“AMCON has never and will not run any business. But as facilitators, we encourage competent professionals to manage businesses. So it is important we correct this wrong perception in some quarters.”
In furtherance of the Corporation’s responsibility of acquiring Eligible Bank Assets (EBAs) and putting them to economic use in a profitable manner, AMCON, the statement said, was in receivership of about 50 businesses and more than 180 businesses under enforcement. It said that these interventions have saved many businesses from going under.
Some 400 obligors of AMCON accounted for more than N4.5trn, approximately 80 per cent of the total outstanding loan balance of the Corporation’s over 12,000 accounts with obligors that became recalcitrant, despite obvious efforts to recover them.