N4.4tr debt bad for economy — AMCON

The management of the Asset Management Corporation of Nigeria (AMCON) has said that it is bad for the economy as the corporation has recovered over N4.4 trillion debt from various companies. It, therefore, called on all agencies of the federal government and all stakeholders to join its debt recovery drive to guide against the huge […]

The management of the Asset Management Corporation of Nigeria (AMCON) has said that it is bad for the economy as the corporation has recovered over N4.4 trillion debt from various companies.

It, therefore, called on all agencies of the federal government and all stakeholders to join its debt recovery drive to guide against the huge opportunity cost of not recovering its huge total current exposure.

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AMCON made the call in a paper presented by the Group Head of AMCON Enforcement, Mr Joshua Ikioda,   titled “Overview of AMCON from Cradle to Date and the Implication of the Bad Debt to the Nigerian Economy” at a 2-day training for Federal High Court Legal Assistants and Court Registrars in Abuja.

Its current exposure of N4.4tr is higher than the entire 2021 capital expenditure budget of the federal government worth N3.85tr.

Ikioda said this is also bigger than the N3.12tr for total foreign debt service for 2021 and personnel cost of N3.7tr.

He said, “Of this figure, the government agency further disclosed that its 350 obligors alone account for a whopping N3.6tr, which is 82 per cent of the outstanding exposure of N4.4tr, which if recovered would be enough to complete the revival of the moribund Ajaokuta Steel Company and construction of many more of such projects.”

AMCON explained that the huge debt if recovered would be enough to capitalise over 2 million micro-businesses with N2m cash injection each or 200,000 Small and Medium Enterprises (SMEs) with N20m per SME, which would create over 10m jobs.

AMCON assured that it is determined to recover these debts because the money belongs to Nigerian taxpayers.

AMCON MD/CEO, Mr Ahmed Kuru in his keynote address said debt recovery has been difficult for the corporation. “It did not turn out to be that easy, through the instrumentality of the courts as we encountered a lot of challenges.