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Tag: AMCON

  • AMCON reports 28.8% decline in total assets for 2023

    AMCON reports 28.8% decline in total assets for 2023

    The Asset Management Corporation of Nigeria (AMCON) has reported a decline of N437 billion in its total assets for the 2023 financial period.

    According to the financial performance report released by the corporation, total assets dropped by 28.8 percent, from N1.513 trillion in 2022 to N1.076 trillion in 2023.

    This decrease in total assets comes at a time when AMCON has been under considerable pressure to recover the toxic loans inherited from liquidated banks and indebted companies.

    The Nigerian banking sector faced a severe financial crisis in 2008 and 2009, partly triggered by the global financial crisis, leading to the establishment of AMCON.

    The Corporation’s initial investment was secured from the capital market through the Central Bank of Nigeria (CBN), and its operations have been funded through levies imposed on commercial banks.

    Read Also: EFCC, AMCON team up for assets recovery

    Specifically, a statutory 0.5 percent charge on all banks’ total assets, including on and off-balance sheet items, finances AMCON.

    Despite the asset decline, AMCON announced a good performance in terms of profitability. In a statement signed by AMCON’s spokesman, Jude Nwauzor, and made available to the media in Abuja on Wednesday, the Corporation reported triple-digit growth in profit, achieving a 202 percent increase from N34.730 billion in the previous year to N108.433 billion in 2023.

    A detailed breakdown of the results shows that AMCON, under the leadership of Managing Director/Chief Executive Officer, Gbenga Alade, achieved Year-on-Year profit growth of 212 percent, rising from N34.730 billion in 2022 to N108.433 billion in 2023.

    This growth was significantly driven by fair valuation gains on Eligible Bank Assets (EBAs), which surged to N40.9 billion in 2023 from a loss of N187.9 billion in 2022.

    Additionally, AMCON’s equity portfolio saw an 82 percent growth in 2023, amounting to N43 billion compared to N7.9 billion in 2022. This substantial gain was attributed to improved performance in the stock market.

    During the same period, the corporation achieved a reduction in total liabilities, decreasing from N6.282 trillion in 2022 to N5.739 trillion in 2023. This reduction was primarily due to the repayment of a N500 billion loan from the Central Bank of Nigeria (CBN).

    Despite the positive profitability figures, experts have expressed concerns over the performance of companies indebted to AMCON.

    They point out that many of these companies continue to struggle amid ongoing litigations and management challenges, which have eroded their values.

    The harsh economic environment has further exacerbated these issues, making it increasingly difficult for AMCON to turn these entities into profitable ventures.

  • AMCON profit rises by 202% to N108b

    AMCON profit rises by 202% to N108b

    Asset Management Corporation of Nigeria (AMCON) made N108 billion profit in the year ended December 31, 2023.

    In a statement, Head of Corporate Communications, Jude Nwauzor, said it represents 202 per cent increase compared with N34.73 billion in 2022. The performance was achieved despite challenging macroeconomic conditions.

    AMCON, led by Gbenga Alade recorded growth in fair valuation gains on Eligible Bank Assets (EBAs) from a loss of N187.9 billion in 2022 to N40.9 billion in 2023.

    Its total liabilities dropped from N6.282 trillion in 2022 to N5.739 trillion in 2023 due to repayments of N500 billion Central Bank of Nigeria loan.

    Read Also: EFCC, AMCON team up for assets recovery

    It also achieved 89 per cent of its revenue budget, with recovery of N125.2 billion comprising N81.65 billion from collections from obligors, N17.8 billion, share sales, N15.5 billion reinvestment income, N6 billion proceed from property sale, N3.8 billion dividend income and N0.5 billion from rental income.

    These results were achieved despite challenging economic environment, occasioned by removal of subsidy and floatation of the naira.

    AMCON’s equity portfolio recorded 82 per cent in 2023, N43 billion against N7.9 billion in 2022.

    Alade said AMCON will continue on this positive trajectory.

     The management  restated its commitment to  more loan recoveries and efficient realisation of its mandate.

  • Company claims N850b damages against AMCON

    Company claims N850b damages against AMCON

    Milan Industries Ltd, owners of Intercontinental Hotels, Lagos has filed N850 billion damages claim against Assets Management Corporation of Nigeria (AMCON).

    The claim is over the wrongful sale of the hotel.

    The firm had earlier filed a suit against AMCON and Polaris Bank challenging the sale of the hotel over Milan’s alleged indebtedness to Polaris, following a banking relationship between them.

    AMCON allegedly acquired Milan’s alleged indebtedness from Polaris and in a bid to recover the alleged debt, purportedly sold Intercontinental Hotels – the security for the loan, to a third party.

    However, in December 2022, the Court of Appeal, Lagos Division, set aside the sale of Intercontinental Hotels Limited, by AMCON as being unlawful. 

    The claim is contained in a suit against AMCON at the Federal High Court Lagos in which Milan Industries is claiming that as a result of the unlawful sale and takeover of its hotel, it has suffered an estimated loss of more than N850 billion, which sum, it is now seeking from AMCON as damages in court.

    Read Also: Fleeing Binance chief Anjarwalla to be deported from Kenya

    The firm in its statement of claim, said “despite lodging an appeal against the judgment of the Court of Appeal, AMCON in clear abuse of court process, is also attempting to recover the unsecured part of the debt, which it estimates to be Forty Billion Two Naira (N42,000,000,000.00). Remarkably, at the time the hotel was sold to the third party, it was valued at N85 billion whereas Milan’s indebtedness stood at N15 billion only, at most.”

    Milan Industries said: “To date, AMCON and Polaris have not informed Milan how much the hotel was purportedly sold for, and whether as a result, the debt is fully liquidated or not.

    “The directors of Milan Industries Limited are vigorously contesting the bankruptcy proceeding commenced against them by AMCON.”

    As a result, the directors of Milan Industries have already instructed the law firms of Prof A. B. Kasunmu L.P, Ahmed Raji & Co., and A. B. Sulu Gambari & Co. to represent them in court.

    “The bankruptcy proceeding is a grand design by AMCON to divert attention from the monumental damages they have inflicted on Milan Industries Limited which they, along with Polaris, must surely pay for,” the firm stated in its statement.

  • Assets seizure: Supreme Court verdict against AMCON just—Suru Group

    Assets seizure: Supreme Court verdict against AMCON just—Suru Group

    Suru Group Boss, Edward Akinlade has applauded the Supreme Court of Nigeria for its decisive judgement in the lawsuit between his company, Suru Worldwide and Asset Management Corporation of Nigeria (AMCON) over seizure of some of his company’s properties by AMCON.

    Addressing journalists, Akinlade said the landmark judgment which was delivered by the Supreme Court in mid-February, was a pleasurable news to him.

    He said the Supreme Court ruled that AMCON’s possession of Suru World Wide’s properties which was premised on a Federal High Court order was illegal as the apex court of law had struck down the said court order.

    He said the Supreme Court had ordered AMCON to go back to the Federal High Court, Lagos and start afresh as if nothing has been ordered and join Suru Worldwide in a fresh lawsuit.

    He said the initial Federal High Court Order had empowered AMCON to seize three of his company’s priced assets which were located in the high brow areas in Ikeja; one is at 12, Allen; the second at 86, Opebi while the third is located at 12, Rev Ogunbiyi.

    Akinlade, a renowned real estate business mogul said that the Supreme Court judgement was remarkable and attests to the fact that it is the last hope of the common man in the country.

    He said the judgement had helped restore hope for companies who have fallen victims to AMCON taking possession of properties of individuals and businesses in the name of helping to resolve the non-performing loan assets.

    He said; “We took a loan from Oceanic Bank in those days for about N13.5bllion and part of it was invested in Best Western Hotel. Part of it was used to buy a lot of land in Ikeja, GRA. And we were paying the loan.

    Read Also: Report: AMCON MD’s ERM experience key in debt recovery

    “Towards the tail end of the former CBN governor, Lamido Sanusi arrival, John Aboh who was appointed as the MD of Oceanic Bank was just selling our properties behind our back. We were here, how can somebody tell us they have bought our lands? Oceanic Bank was doing that. And then they wrote us a letter that they are not giving us any more money that we have spent part of the loan. All the credits in our bank accounts were taken.

    “One day, we were just told that whatever that was left in our loan was sold to AMCON for N8.5billion. So that is the contention.  When AMCON came in, they went to the Federal High Court that the court should agree that they had bought the loan properly. But the case was dismissed because AMCON should not be buying performing loans. This was a judgement AMCON was told Suru is not owing them any money. Then they now started seeking what I call ‘Jankara Judgement’ from other courts.

    “And while all the debts issues have been dismissed as abuse of court process, AMCON lawyer, Joseph Nwobike  and the then AMCON MD, Ahmed Kuru took The Police to court on recovery of three of Suru World Wide assets. They got a judgement’ against a functioning Best Western Hotel in Ikeja, Lagos State without mentioning us in the suit.

     Their action cost us a lot, over 200 jobs were lost, our business goodwill was destroyed, our international partners ran away, over 500 contractors went into debts, and there were unending litigations against Suru Worldwide by guests.”

    Speaking on his take from the Supreme Court ruling on AMCON’s possession of Suru WorldWide’s properties, Akinlade said that the apex court has shown courage and firmness in its judgement which means there won’t be room for Illegality as AMCON has no choice other than to obey the court order and the rule of law.

  • Report: AMCON MD’s ERM experience key in debt recovery

    The newly appointed Managing Director of Asset Management Corporation of Nigeria (AMCON), Gbenga Alade’s experience as an enterprise-wide risk management professional will be vital to his success at the asset company, financial sector experts have said.

    In a report released yesterday, industry experts said with certification in Enterprise Risk Management (ERM), the new AMCON boss will be deploying the much-needed knowledge for motivating AMCON towards exploring alternative strategies that include debt-equity swaps and effective legal procedure for timely retrieval and management of debts.

    Alade, they said is aware of the challenges before him and expectations  from stakeholders across the board.

    Raheem Ajayi, a risk management expert based in Abuja, said:

    “He recognizes the onerous responsibility of delivering on the critical mandate of cleaning the financial system by acquiring the non-performing loans from banks and other eligible financial institutions (EFIs). The new man at the saddle at AMCON can be trusted to ensure efficient management and accountable disposal of acquired assets to optimize returns and contribute to the overarching objectives of the Renewed Hope Agenda of President Tinubu to make the Nigerian economy stronger and viable”.

    Another industry expert, Miachel Adigun, said AMCON under the new leadership is expected to change the narrative of recurring debt evasion debtors and penchant for dubious technicalities to frustrate asset recovery.

    “The new AMCON has requisite experience and the know-how to make AMCON become an accelerated debt recovery corporation considering his track-record. While at the Bank of Montreal (2006 – 2009), the new AMCON chief was part of a team that implemented Base 2 capital accord and developed metrics for enterprise risk reporting,” he said.

    Read Also: Lagos begins prosecution of pedestrians crossing highways

    Alade’s knowledge and skills in risk management and governance control process  was brought to bear while serving as the Managing Director and Chief Executive Officer of Guaranty Trust Bank in Sierra Leone.

    He is reputed to have managed the Bank to become number one in Sierra Leone in terms of service delivery and profitability which earned the bank four consecutive Best Bank Award in Sierra Leone for 2014, 2015, 2016 and 2017. Mr. Alade won the Bankers’ CEO award in 2014, 2015 and 2016.

    “ AMCON is expected to be more strategic and effective by collaborating with other agencies and by exploring alternative dispute resolution mechanisms as well as strengthening legal frameworks. There is no doubt that stakeholders anticipate that the pedigree of the new AMCON chief executive would help prevent the accumulation of non-performing loans which often necessitate fostering of risk management regimes within the banking sector through responsible lending and effective enforcement of regulations,” Adigun said.

  • ‘AMCON, Afreximbank, others aided Geometric Power funding’

    ‘AMCON, Afreximbank, others aided Geometric Power funding’

    Chairman, Geometric Power Group, Prof. Barth Nnaji has said  the Asset Management Corporation of Nigeria (AMCON), Afreximbank, the Central Bank of Nigeria (CBN), and some domestic commercial banks facilitated the funding for the Geometric Power Plant project.

    The 181-megawatt Geometric Power Plant, in Osisioma Local Government Area of Aba, Abia State was inaugurated yesterday in Aba, Abia State. The event was attended by Vice President Kashim Shettima and the Abia State Governor Dr Alex Otti, among others.

    During a joint media parley, Nnaji hosted with AMCON’s Group Head of Enforcement, Joshua Ikioda, he highlighted the critical and strategic role played by the management of AMCON, and other lenders towards the completion of the mega project that would supply uninterrupted power to the nine Local Government Areas of Abia and its environs.

    Nnaji said: “We started this project when Nigerian banks could not lend to the power sector.  But AMCON along the line bought part of the debt of the banks, while the Central Bank of Nigeria (CBN) through the Power and Aviation Intervention Fund managed by the Bank of Industries (BoI) also provided further funds to the project of which the two banks took up the credit risk.”

    Read Also: Tinubu appoints new heads for AMCON, NCC, NIGCOMSAT, Galaxy Backbone

    He appreciated the CEO of AMCON for his steadfastness, encouragement, and integrity.

    Also, Ikioda said: “AMCON along the line had fears, apprehensions, and concerns. As investors, we took a risk. And when an investment is made, and it is not bringing you money or returns, you begin to have apprehension. But we stood in faith, believing that this was a viable project that can change the face of not just Aba and this environment but the country. Most importantly, we must commend Prof. Nnaji because even in the face of daunting challenges, he was very focused. He was very tenacious. That gave AMCON courage, and hop.

    “As investors, what is important is for us to give a funding structure that will not choke the project. We are Nigerians, we have Nigerian blood flowing through our system. So, we have to see Prof. Nnaji through. We are quite excited to be part of history and it is from that position that our support is total. This is Act 1, Scene 1. We are still going into different phases, and it is our determination to stand with him and see this project through, to better the lot of Nigerians.” he stated.

  • Firm seeks N23b from AMCON after hotel invasion

    Firm seeks N23b from AMCON after hotel invasion

    Suru Worldwide Ventures, owners of Best Western Hotel on Allen Avenue, Ikeja, has demanded N23,087,390,000.00 special damages from Asset Management Corporation of Nigeria (AMCON) for alleged disruption to the hotel’s business.

    The company is also asking AMCON for general damages of N5 billion for ‘deep-rooted and disruption’ to business.

    The company further demanded N150 million cost for the suit against AMCON.

    Suru’s lawyers, Layi Babatunde and David Owoeye made the demands in a pre-action notice on January 11.

    It wrote: “Take notice, that unless you take steps to stop further dissipation of our client’s properties and further remediate our clients’ losses… we shall be left with no alternative than to give effect to our clients’ to institute a claim against you…”

    In the notice to Managing Director, the company alleged AMCON’s agents, accompanied by armed men, invaded its premises on September 22, 2017, at 4:30 a.m.

    AMCON had claimed to be enforcing a court order in suit FHC/VCS/1059/2016.

    The company faulted “the brazen manner in which you (AMCON) proceeded, in a commando style, to forcibly take over our clients’ property (Best Western Hotel) at No. 12 Allen Avenue, Ikeja, Lagos…”

    Suru Worldwide said AMCON unlawfully held guests, workers and others, hostage.

    Read Also: AMCON: Ahmed Kuru and his adversaries

    It added the agency ejected clients, employees and customers/occupiers, “thereby bringing our clients’ business to ruin and tainting our clients’ reputation and brand…”

    “Having secured unlawful and forcible possession of our client’s properties, you stripped our clients’ properties of its fittings, furniture, lightings, electronic appliances and power generating sets, it said.

    “You have caused structural alterations and dissipation to our client’s property such that the status of our client’s international Four Star Hotel including its Best Western licence has been degraded…’’

    “However, to your knowledge, the judgment upon which the purported execution was done has since been set aside by the Court of Appeal.

    “It is also on record that your counterclaim for alleged indebtedness of our client in suit no. FHC/UCS/450/11; Suru Worldwide Ventures Ltd v. AMCON & Anor has since been dismissed by the Federal High Court, which dismissal was upheld by the Court of Appeal and is now on appeal to the Supreme Court.”

    The Supreme Court will on Friday deliver a ruling in the civil application.

  • AMCON: Ahmed Kuru and his adversaries

    AMCON: Ahmed Kuru and his adversaries

    • By James Imoru

    Being a beacon of integrity in an abundantly blessed but mismanaged, consciously monetized society like Nigeria can be daunting. Ask the Asset Management Corporation of Nigeria (AMCON) boss, Ahmed Lawan Kuru. Confronting the hawks who wrecked the banking sector with unpaid loans and thus forced the creation of the corporation in the first place is not just a daunting task; it is an assignment strewn with perils, including law fare and media wars by profiteers from the people’s pain, the friends and enablers of criminals. For one thing, the obligors of AMCON are in the commanding heights of political power, and if the nation has learned anything in the past few years when the corporation and these enemies of state have been locked in a battle, it is the fact that criminals do not like exposure.

    In 2017, Kuru was garlanded as the African Best Rated CEO of The Year at the second edition of the National Development Forum (NDF)/award ceremony organized by African Development Magazine. Explaining the criteria for the selection of Kuru at the event, the media house stated that the AMCON boss was adjudged winner by the panel of judges after a careful evaluation of his difficult assignment at AMCON and the fact that he went about it in a way that supported the anti-graft war in the country. As it noted, it was a herculean task chasing dangerous debtors who had borrowed money from taxpayers to fund their lavish lifestyle while deliberately refusing to pay back and thus contributed to crippling the Nigerian economy. The same point was canvassed by the management of the New Telegraph when they bestowed upon Kuru the maiden edition of the “Public Integrity Award 2021.” The AMCON boss, they averred, was selected from a large poll of public servants heading different Ministries, Departments and Agencies (MDAs) of the government across Nigeria because of his commitment, dedication, uprightness, and patriotic zeal that he has gone about the recovery drive from AMCON obligors who owed Nigeria a current outstanding debt of over N4.4trillion.

    As a popular Nigeria musician quipped, “it is divinity that abhors falsehood, the world wants no forthrightness.” And yet someone must stand up to be counted; someone must dare the status quo and rescue the nation from ruin. That is the kind of job Dora Akunyili had, and it is the kind of job Ahmed Kuru has. It is no wonder, then, that hiding under pseudonyms (fake names) and purveying the most blatant of falsehoods, certain anti-Kuru elements have gone on an overdrive in the media in recent times, cooking up falsehood against the passionately committed and resource-savvy AMCON boss. Combining innuendos with conjecture, and vile abuse with sheer envy, they are doing their level best to robe the AMCON boss in the garb of a villain and get him out of the way. They are movers and shakers within the Nigerian landscape and they are not content with the multiple frivolous cases they filed in court in a desperate attempt to get away with crimes for which in saner climes they would presently be rotting in jail. The tactic is unmistakable: take Kuru’s job away from him by casting aspersions on his integrity, forcing the president to remove him. This is, to say the least, a devious tactic, and President Bola Ahmed Tinubu will not be moved by it. He is much too sophisticated to be swayed by charlatans masquerading as social crusaders. Convicts of financial crimes and the brains behind failed banks fazed by the public spirit with which Kuru works can only rage using media hounds; they must not be allowed to turn back the hands of the clock.

    The fact that a good number of AMCON obligors who have no business occupying public office given their role in wrecking Nigeria’s financial system are now occupying top government offices should be a source of concern. But the fact that they are using public funds to sponsor all manners of attacks against AMCON is even more egregious. They are using public funds to protect their crime and take out those who dared to challenge them. They detest AMCON and its debt-recovery efforts with passion. And their pain was compounded by the fact that following his stellar performance in the first five years at the helms of affairs of AMCON, President Muhammadu Buhari reappointed Kuru, a career banker with professional experience spanning nearly four decades across investment banking, risk management, operations, human capital management and marketing, for another term of office in 2021.

    Read Also: Court orders Senator Umeh to repay N136m bank debt with interest to AMCON

    As Managing Director/CEO of the former Enterprise Bank Limited, Kuru oversaw phenomenal growth. Within the first two years of his leadership, the bank made over N11billion profit, solidifying the path of profitability.  It is a fact that it was AMCON that saved Arik Airlines, the largest local carrier, and Aero Contractors, Nigeria’s oldest carrier from shutting down operations, while making other strategic investments in a number of other local carriers, all of which have helped to keep the aviation sector afloat.

    The fact that AMCON has recovered about N1.8trillion from inception till date cannot be discountenanced, nor can the fact that it acquired about 12,000 Non-Performing Loans (NPLs) worth N3.7 trillion from 22 banks and injected N2.2 trillion as financial accommodation to 10 banks in order to prevent systemic failure.

    In August last year, speaking in London, United Kingdom, at a training for Federal High Court judges from Nigeria, the AMCON boss indicated that the corporation’s recoveries in cash and in sale of assets had been made possible with the help of the judiciary. This was because “granting of Ex parte Orders as well as orders to attach traced assets have compelled most recalcitrant obligors of AMCON to come to the negotiation table.” The recalcitrant obligors, he said, had mastered the act of clinging to the technicalities rather than settling their established obligations. But the Kuru-led AMCON had never shirked its responsibilities. 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. It has consistently delivered on its recovery mandate since its inception. The figure was over N70 billion for 2023. And the feelers from the corporation are that things are bound to get even better in the days to come.

    • Imoru, Civil Right Activist, contributes this piece through james_imoru@aol.com
  • AMCON recovers N1.8tr, sustains profitability, says MD

    AMCON recovers N1.8tr, sustains profitability, says MD

    • National Assembly moves to probe $496m payment to Indian firm over Itakpe Iron Ore concession

    • Absence of petroleum ministers stalls budget defence at National Assembly

    The Asset Management Corporation of Nigeria (AMCON) has recovered over N1.8 trillion from debtors, its Managing Director/Chief Executive Officer, Ahmed Lawan Kuru, has said.

    Kuru announced this while briefing members of the 10th Senate Committee on Banking, Insurance and Other Financial Institutions, chaired by Mukhail Adetokunbo Abiru, yesterday in Abuja.

    The AMCON boss stressed that even though the corporation was created as a bad bank with various challenges beyond its control, it had remained a profit-making organisation.

    He said it had delivered on its recovery mandate, against all odds.

    Kuru said AMCON made a profit of N23.97 billion in 2020, which increased to N34.65 billion in 2021, and N58.59 billion in 2022.

    The AMCON boss explained that the loss captured in the management account as of September 30, 2023, was because the interest accrual on the Central Bank of Nigeria (CBN) loan note had been charged as an expense to its Profit and Loss Account.

    He added that AMCON’s corresponding credit, the receipts for external recoveries, which is estimated to be about N359 billion, had not been recognised and captured in the corporation’s balance as at that time. It is usually recorded in December before closing the books.

    Read Also; Sanwo-Olu promises medical palliatives to residents

    Also, the National Assembly Joint Committee on Steel Development yesterday resolved to probe the $496 million the Federal Government paid to an Indian firm which failed to revitalise the Itakpe Iron Ore Company after three years.

    The Indian company, Global Infrastructure Holding Limited (GIHL), had taken over the National Iron Ore Mining Company (NIOMCO) at Itakpe in Kogi State in 2016 and got its agreement terminated in 2019 due to lacklustre-performance.

    The company had sued the Federal Government for a breach of contract and it was awarded damages to the tune of $496 million which had been paid.

    The minister of Steel Development, Shuaibu Abubakar Audu, spoke about the payment in a  presentation before the National Assembly’s Joint Committee Committee on Steel Development.

    But his presentation did not go down well with a member of the panel, Senator Natasha Akpoti-Uduaghan.

    She wondered why the termination of the agreement was done without public knowledge.

    Also, the absence of the two ministers in charge of Petroleum Resources (Oil and Gas), Senator Heineken Lokpobiri and Ekperipe Ekpo, yesterday stalled the budget defence of the ministry before a Joint Committee of Senate and House of Representatives.

    The joint committee rejected a representation from the ministry and asked that the two ministers appear before it on Monday.

  • No collateral for N2.2tr injected into 10 banks, AMCON tells Senate

    No collateral for N2.2tr injected into 10 banks, AMCON tells Senate

    • We will end war against insecurity, Defence minister assures Nigerians
    • Fed Govt plans to dredge ports, build new ones, says Oyetola
    • Kyari: NNPCL remitted N4.5tr into Federation Account in 10 months

    The N2.2 trillion injected into 10 bridged banks by the Asset Management Corporation of Nigeria (AMCON) was not backed by any collateral, the AMCON Chief Executive Officer, Ahmed Kuru, has said.

    The development, he said, had made recovery of the funds very difficult.

    Kuru said this during an interactive session between the corporation’s management and Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Adetokunbo Abiru, yesterday in Abuja.

    The AMCON chief said the corporation had to inject N2.2 trillion into the 10 banks – bridged and owned banks (intervened banks) – bringing Net Book Value (NAV) to zero. 

    “This N2.2 trillion was not backed by any collateral; which made recovery extremely difficult. The corporation is battling with some of the oil and gas facilities acquired from the bank,” he said.

    According to him, AMCON’s intervention was funded by a debt obligation of N4.65 trillion (as at December 31, 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. The balance of the AMCON debt was to be offset by the Banking Sector Resolution Cost Fund (“BSRCF”). Some of the assumptions underpinning the funding model were: The banking sector was projected to grow at 20 per cent per annum.

    “Each bank would contribute 0.5 per cent (initially 0.3 per cent) of total assets per year to the BSRCF; CBN to contribute N50 billion per year to the BSRCF.

    “AMCON’s bonds were refinanced by the CBN at six per cent, and this is higher than the rate payable by other intervention funds. The cash shortfall from internal and external sources meant that there was less fund to invest at the stated reinvestment rate,” he said.

    Abiru said the 10th Senate would ensure that the government achieved the objectives of setting up the corporation in 2010.

    Abiru frowned at the huge interest rates that AMCON paid to the CBN.

    He noted that a situation where AMCON paid six per cent to the CBN and charged some percentage on obligors, whose businesses were already challenged before the corporation’s intervention, was not healthy.

    Also, Defence Minister Mohammed Badaru Abubakar has expressed optimism about an end to the war against insecurity in the country.

    He solicited for more funds to enable the ministry effectively carry out its activities in the various theatres of operation across the land.

    Abubakar spoke when he appeared before the joint session of the Senate and House of Representatives’ Committees on Defence for the budget defence of his ministry.

    The minister, who said the 2024 budget of the ministry was N78,581,164,993, explained that the aim was to ensure sustained and simultaneous operations in the theatres of operations.

    “Our aim is to have simultaneous operations in all our theatres so that all of them would work. So, we would try as much as possible to end the insecurity at once, instead of fighting it in one centre while the bandits or the insurgents are moving to the other centres.”

    Also, Marine and Blue Economy Minister Adegboyega Oyetola has said the Federal Government is planning to dredge some of the nation’s ports to accommodate bigger vessels.

    The minister also said there were plans to build new ports across the country.

    Oyetola spoke at the ministry’s N10.9 billion 2024 budget defence before the joint Senate and House of Representatives’ Committees on Ports and Harbour.

    He said about $1.2 billion was required to fix the decay in the nation’s ports.

    The minister spoke as the lawmakers urged Nigeria to tap into the $1.8 trillion blue economy potentials as well as improve on this ministry’s revenue generation through the Maritime sector.

    Oyetola expressed concern about the attitude of importers and shippers that abandoned the nation’s ports and diverted vessels to neighbouring countries.

    Read Also: Senate panel grills AMCON boss, Kuru over alleged N146bn loss in 12 months

    The minister called for adequate funding to dredge the nation’s ports to enable them to take big vessels.

    Also, the Nigerian National Petroleum Company Limited (NNPCL) has said it remitted N4.5 trillion revenue into the Federation Account as at last October.

    Its Group Chief Executive Officer (GCEO), Mele Kyari, announced this when he appeared before the Senate Committee on Finance at the National Assembly yesterday in Abuja.

    He also told the lawmakers that the crude oil production price benchmark used in the 2024 budget was realistic.

    Kyari said the current hardship in the country would soon give way to prosperity.

    In his presentation before the committee, the NNPCL boss said better days were ahead for the company and Nigeria as the reforms in the Petroleum Industry Act (PIA) for the oil sector had made the corporation to be at par with its counterparts across the world.