‘AMCON debt may hit N6.6trn by 2024’

A legal consultant and Senior Partner, Olaniwun Ajayi LP, Mr Muyiwa Balogun has called on Asset Management Corporation of Nigeria (AMCON) and its Asset Management Partners (AMPs) as well as the Inter-Agency Presidential Committee set up by the federal government to leverage the 2019 Amended AMCON Act, which has been signed into law by President Muhammadu Buhari and recover the over N5trillion outstanding AMCON debt.

Balogun who made a case in support of the 2019 Amendments while addressing external solicitors and AMPs of AMCON in Abuja further painted a gloomy picture of what could further befall the already challenged Nigerian economy if the debts were not recovered in good time before the sunset period.

According to him, AMCON debt could easily rise to a whopping N6.6trillion by 2024 because AMCON still owes the Central Bank of Nigeria (CBN) N4.5trillion and also battling with N1.7trillion of Assets Under Litigation (AUL).

He said given the fact that the debt would eventually become the burden of the federal government and by extension taxpayers; there is need for speed in recovery just as all hands should be on deck to ensure that AMCON recovers the debt as mandated by the new amendments.

AMCON Managing Director/Chief Executive Officer, Mr. Ahmed Kuru, said even though obligors of AMCON had been working hard to stretch AMCON to the sunset period, the corporation, under his leadership is determined to achieve its mandate within the limited time available (and within the law).

He stated that the amended act indeed provided additional powers to an already strong act of AMCON as some obligors who hitherto were hiding from their obligation are now coming out to see how their debt can be resolved.

He however added that the amendment can only be effective to the extent that solicitors of AMCON understand the Act and thereafter utilize the far-reaching powers that have been vested in the Corporation to help AMCON and Nigerian recover the debt.