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Tag: Kuru

  • AMCON may disengage non-performing AMPs – Kuru

    The Managing Director/CEO, Asset Management Corporation of Nigeria (AMCON), Mr. Ahmed Lawan Kuru, has stated that AMCON may disengage Asset Management Partners (AMPs) that cannot cope with the speed and enormous challenges of debt recovery expected by the corporation.

    Kuru who made this known in a statement promised that the corporation may assign more accounts to AMPs that have shown aggression and zeal based on the review of the AMP scheme so far.

    According to the statement, “The AMPs are currently handling over 6,000 accounts within AMCON portfolio.”

    AMCON, he insisted, places equal importance on the recovery efforts as they count towards the achievement of the corporation’s core mandate.

     

  • AMCON debtors getting bolder, says Kuru

    •Reps seek quick passage of AMCON Bill

    The Managing Director/Chief Executive Officer of Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru has said the corporation needs legal support as its debtors are getting bolder by the day and employing all kinds of tricks to tie the corporation up in court.

    Kuru who spoke yesterday at the opening of a three-day retreat in Kano obligors are smarter, desperate, more aggressive and recalcitrant.

    This, he says,  calls for a need to revisit the AMCON Act which governs its operations.

    Kuru said AMCON has over 3,000 cases, and counting in different courts across the country. He said  obligors with means to pay their loans still doing business with other names but have vehemently refused to pay what they owe AMCON.

    He added that AMCON, having achieved remarkable milestones in the last seven and half years of its creation, is willing to deliver even more if given the needed support from all key stakeholders such as the legislature, the judiciary, the executive among others.

    Presenting an abridged highlight of the corporation’s achievements in the last seven and half years, Kuru said, “AMCON has fully redeemed all Federal Government guaranteed bonds issued to the commercial banks for purchase of non-performing loans”.

    “The face value of the bonds was N3.7 trillion; the banks became stable and were able to support businesses; AMCON has successfully divested from the three bridge banks-Mainstreet, Enterprise and, Keystone banks; AMCON has recorded total recoveries worth N975 billion of which cash and assets account for 60 per cent and 40 per cent, respectively”.

    Speaking further, the AMCON boss said, “These achievements came at a significant cost of human and material resources. It seems the energy required to make progress now, is a lot more than what was expended before, both in terms of legal, legislation and human resources.

    In his prayers to the House Committee, Kuru further submitted that, “One of the major areas for amendment is the matter of vesting proprietary interest of all collateral assets acquired by AMCON from commercial banks. The proposed amendment will have retrospective effect. The vesting of proprietary interest of all collateral assets in the resolution vehicle was implemented in Malaysia and was instrumental to their success in recovering debt obligations.

    “Our second challenge has to do with the disposal of assets due to the economic downturn. AMCON’s current Assets Under Management (AUM), that is assets obtained from debt resolution, has a book value of N182 billion, which we are unable to sell. Our ability to successfully divest these assets, at competitive market price, is severely hampered by several factors including valuation methodology, unperfected title documents, state of the economy, purchasing power etc. Our third challenge is the uncooperative attitudes of select obligors who are either unwilling and/or unable to settle their indebtedness. Such debtors prefer to resort to all manner of diversionary tactics as opposed to dealing with the problem of their indebtedness. It sees most of them are buying time, to where we do not know!

    “It is evident that we have exhausted the low hanging fruits and have to roll up our sleeves for a drawn out battle as it becomes harder to get obligors to settle their debts. To clarify, obligors indebted to AMCON for the sum of N1.3 trillion have sued us in various courts in Nigeria raising technicalities to avoid meeting their obligations. This has hampered our recovery efforts and our objective of obtaining the best achievable financial returns on assets acquired from the banks,” Kuru concluded.

    Also speaking, Chairman of House of Representatives Committee on Banking and Currency, Jones Chukwudi Onyereri has stated that the legislators will work with the Senate for a quick passage of the Asset Management Corporation of Nigeria (AMCON) Amendment Bill. The Bill will ensure that the corporation gets all needed support from the National Assembly to meet its mandate.

    Onyereri said given the sunset date of AMCON, which he stated was created by the government not to operate in perpetuity, the National Assembly, the executive and the judiciary must ensure that the recovery agency of government meets its obligation within the expected and acceptable timeframe. He said, “Earlier this year, we had a public hearing and a technical session on the AMCON amendment Bill. The Report on the Bill is out and will soon be presented before the House.

     

     

    “This shows our commitment in ensuring that AMCON gets all the support it can get from the National Assembly in carrying out its mandate. This Bill is very important and we promise to work with the Senate in ensuring a quick passage of the Bill. As we are all aware, AMCON was not created to exist in perpetuity. There is a sunset date for AMCON and it is expected to have achieved its mandate before the sunset date. Therefore, and more importantly, we are here to interact with AMCON to see how we can further help in making sure that AMCON achieves this mandate for the common good of the country.”

    According to the Chairman, the lawmakers are happy that AMCON as an interventionist institution of the Federal Government, especially under its present management, has performed above board, but are worried that the Corporation is often constrained by institutional and legal stumbling blocks that have continued to hinder them from achieving optimum results especially since public funds were used to buy these loans that helped prevent the EFIs from going under. As a matter of public urgency, he stated that AMCON needs to recover these monies, just as there is need to sensitize the courts on the need for speedy resolution of AMCON cases.

  • Nigeria not isolated from global changes, says Buhari 

    Nigeria not isolated from global changes, says Buhari 

    President Muhammadu Buhari on Friday maintained that Nigeria is not isolated from the global changes taking place in the various sectors.

    He spoke at the Presidential Villa, during the Presidential Parley with Participants of the Senior Executive Course No.39 (2017) of the National Institute for Policy and Strategic Studies, Kuru.

    According to him, Nigeria is being affected by changes in security, trade, technology, global warming and population demographics.

    He said “Today, we are at a very critical juncture of history. The world, as we know it, is changing.

    “I am sure you will all agree that in the first two decades of this century, we have seen significant shifts across the globe. Whether it is in security, trade, technology, global warming or population demographics, the world has truly changed.

    “Nigeria is not isolated from these trends. We are doing our best to respond to these changes. But we cannot be comfortable with just being a passive nation. We must be proactive.

    “Exactly one year ago, during my Parley with the Participants of the Senior Executive Course No.38, I tasked the Management of the National Institute with the responsibility of looking at Science, Technology and Innovation for the Development of Agriculture and Agro-Allied Industries.

    “I was therefore very pleased to hear this proposal was adopted as the theme for Senior Executive Course 39.” he said

    The National Institute, he noted, was created as a policy formation center where senior Nigerians from all segments of society work together with the common goal of making Nigeria better.

    “I am pleased that the Participants of Course 39 focused one on how Nigeria can address its Food Security Challenges leveraging Science, Technology and Innovation.

    “I have listened attentively to the presentation by the Course Participants and I am glad that the findings and policy recommendations are apt and implementable.

    “As I mentioned in my budget speech just 2 weeks ago, “only tailored Nigerian solutions can fix Nigeria’s unique problems”. I am proud to say your report is in agreement with that.

    “Your submission has come at a time when Nigeria is recording significant successes in Agriculture and food security. However, we cannot afford to be complacent. We must develop strategies to sustain this momentum.

    “Be assured that the economic management team will carefully study your Report and work towards implementing its recommendations.” he said

    He said that his administration will also continue to address the challenges of the National Institute in both infrastructure and manpower for improved performance.

    “On behalf of the Government and the people of Nigeria, I congratulate you for your patriotic efforts.”

    The Acting Director General National Institute for Policy and Strategic Studies, Senior Executive Course 39 (2017) participants. Jonathan Mela Juma said that the President has tasked the institute to look at ways and means that science and technology can impact on agriculture and Afro-allied industries.

    He said “This is what we have been able to do, we have the report to him based on the 10 month period the participants undertook, study, research, travel, gather information, synthesis and then come up with this report.”

    On challenges, he said “One we requested for direct intervention by Mr. President, it might not necessarily be from the budget, there are other revenues you can tap to be able to raise money and support for these tools. And one of these areas is the setting up of the endowment fund, if that is done it means we will have other sources other than what comes from the budget.

    “We do recognize the fact that the budget is limited, there are other competing needs and so we cannot rely 100 percent on funding from the budget.

    Asked to give figure of the debts the institute is owing, he said “I don’t have a figure but one of those areas in which we are indebted  is power supply. The NERC just released new MYTO which means that power generators and distributors have increased their tariff by almost a hundred percent. When we started the year we didn’t anticipate that there will be this increase. And so, we have to contend with that and our suppliers will not listen to us because the budget did not take into account the increase. So these are liabilities we have accumulated and we have to find a way of dealing with it because we cannot do without power.

    “In the national institute we operate virtually 24 hours, every minute of day and night they are participants working and so we must have 24 hours supply of power.

    “So good enough we have NESCO that is very good in that area and couple with Jos electricity distribution company. And so we enjoy very good supply but we need to pay for those services.

    “Mr. President has given us assurance that the funding needs of the national institute will be addressed. Particularly the need to address the decay infrastructure. We have requested for additional chalets for accommodation for directing staff. We hope that this will be resolved as soon as possible,” he said.

  • Buhari seeks Senate’s confirmation for Fowler, Danbatta, Kuru

    Buhari seeks Senate’s confirmation for Fowler, Danbatta, Kuru

    •President  asks Assembly to okay $200m World Bank loan for Lagos

    The Senate yesterday received communications from President Muhammadu Buhari requesting confirmation of the appointments of Mr. Babatunde Fowler as Executive Chairman of the Federal Inland Revenue Service (FIRS).

    Also, the President sent a request for approval of Alhaji Umaru Danbata as the Executive Vice Chairman of the Nigerian Communications Commission (NCC).

    Similarly, the name of Alhaji Ahmed Kuru was  sent to the upper legislative body for confirmation as the Managing Director of Assets Management Corporation of Nigeria (AMCON).

    The names of Kola Ayeye, Eberechukwu Uneze and Aminu Ismail were also forwarded for approval as Executive Directors.

    Also yesterday, the President asked the Senate to approve a Development Policy Operation (DPO) loan (budget support) of $200 million to Lagos State from the World Bank.

    Buhari, in a letter entitled: “Request for special approval of Lagos State DPO 11 under the Federal Government external borrowing rolling plan 2015 to 2017,” the President requested the Senate to endorse the loan expeditiously.

    The letter reads in part: “I refer to the above subject and request approval for Development Policy Operation (DPO) loan (Budget Support) of US$200 million to Lagos State from the World Bank.

    “You may wish to know that the World Bank approved a DPO loan for a total sum of US$600 million to Lagos State Government in 2010 to be implemented in three tranches of US$200 million per annum.

    “The first tranche was approved by the National Assembly in the 2010-2012 Federal Government External (Rolling) Borrowing Plan and the second tranche was in the 2012-2014 plan.

    “The DPO 1has been successfully implemented as adjudged by the World Bank, the Bank’s Board of Executive Directors approved the second tranche of the DPO on April 29, 2015.

    “The DPO 111 was captured in the Federal Government External (Rolling) Borrowing Plan of 2014-2016 which was discussed with the National Assembly, but was not concluded.

    “Pursuant to the above, therefore I seek for your support to facilitate the consideration and approval of the DPO 111 loan of US$200million to enable the state to consolidate on the gains of the second tranche of the DPO 11.

    ‘It is instructive to note that key programme objectives of the DPO are already beginning to show in terms of increased inflow of private investment to the state, increased private sector employment opportunities and increased internally generated revenues.

  • Bridged banks now profitable, says Kuru

    Bridged banks now profitable, says Kuru

    The three bridged banks  Mainstreet Bank Limited, Keystone Bank Limited and Enterprise Bank Limited – have been restructured and are back to profitability, the Group Managing Director/Chief Executive Officer, Enterprise Bank, Ahmed Kuru, has said.

    Addressing reporters in Lagos, Kuru, who justified the intervention of the Central Bank of Nigeria (CBN) in these institutions, said the three banks are strong enough to compete with their peers in the industry,

    He said: “When we came on board, our mandate was to run the banks profitably with strong financials. I can categorically say that the three banks are strong enough to compete with others.”

    Kuru said Enterprise Bank has been able to grow its deposits by over 27 per cent, while the industry average is 15 per cent; loan book by 200 per cent, with average industry rate being 16 per cent; and asset base by 26 per cent; and return on investment (ROI) by 20 per cent, which is over seven per cent above industry average.

    Among other aspirations, Kuru said his ultimate desire is to increase the Information Technology (IT) platforms to transact its business and reduce the number of people coming to the banking hall to about five per cent.

    To aid this, he said the bank has invested in modern Information and Communication Technology solutions that would make it convenient for people to carry out banking operations in the comfort of their homes and officers, as well as through their mobile telephones.

    On the cash-less initiative, whose pilot is running in Lagos, Kuru said it was the ultimate, but added that the country needed to enforce the law on dud cheque issuance in such a way that issuers should be sent to jail within three weeks.

    He said it was up to the Asset Management Corporation of Nigeria ( AMCON) to determine what to do with the three bridged banks, adding that “what is important to us, is to run the Institutions commercially, profitably and put all the structures on ground to ensure that business continues, because whoever steps in to buy the banks is not coming to buy structures, he is coming to buy the value that is in the structures.

    On the choice of Borno State by the Bankers’ Committee to kick-off its financial inclusion policy, the Enterprise Bank boss, admitted that the issue of security in Borno is a problem. He said the banks will involve people around the state to implement the policy.

    “You don’t just employ people and send them to a volatile area. Every organisation has the responsibility to protect its workers. There are people that hail from those areas. Part of the structure we want to leverage on; besides the banks’ branches that are currently in those locations, is to leverage on the Post Offices in the over 700 local governments. They try to put local people that speak the local dialect; they are usually the staff that manages Post Offices in Nigeria.”

    On whether the industry is over regulated, Kuru, said, the Financial Sector, mostly the Banking Industry, is the most regulated in the world, explaining that what the CBN is trying to do is to ensure that they put necessary measures in place; so as not to be caught unawares; that is why they continue to rollout guidelines.

    “ I can tell you that most part of the Circulars they put out, are also discussed at the Bankers Committee meeting; they want to carry everybody along, and as partners, we will see how to position the industry, it will not be driven by individuals; but structures.

    “So if anybody comes into the system, regardless of what happens, the structure will mould how he conducts himself. We are not distracted by the CBN’s regulation; but rather, encouraged by it. So, we will continue to operate in a way that we do not go contrary to the CBN rules,” Kuru said.