Saturday, June 02, 2018 10.30AM / Ottoabasi Abasiekong
The intervention of the Asset Management Company of Nigeria, since its inception has saved over 15,000 jobs in the Nigerian economy.
This was disclosed by the Managing Director/Chief Executive Officer of the Company Mr Ahmed Kuru at a media parley recently in Lagos.
AMCON which was created to bring stability to the financial system, according to Mr Kuru has managed a total of N3.3trillion that was at risk in the country.
To drive efficiency in its operations, the AMCON MD said it has changed its strategy from restructuring resolution to recovery.
This is due to issues around restructuring of businesses it had to take over from that were not yielding the desired results.
On the area of the excess loss position, Kuru said it had seen traction in reduction levels despite the challenges that the company has faced.
He decried the fact that Nigeria had over 5,000 debtors that had gone into hiding to which effect AMCON is working tirelessly to track and recover debts from.
“The Challenge we have is with Debtors who are not willing to pay, but have the underlining collateral and we have no other choice but to go after the collateral”. –Kuru Said.
Speaking further he stated that AMCON was sitting on substantial amount of real assets, but had several court cases on the seizure of the assets of debtors, for which he made a strong case for fast-tracking of the cases.
From the political-economic environment Kuru said the Company was not under any political influence in the discharge of its mandate, and remained focused on its strategy.
Giving further updates on loans purchase, Mr Kuru said AMCON so far have bought about 14,000 loans in the country.
On the state of the economy and the impact on the AMCON objective, Kuru said “For AMCON to be performing, the economy must also be growing. If the economy is doing well, some of those businesses defaulting will also be doing very well. If the economy is not doing very well, then those underlying businesses would also not be doing very well”.
The AMCON boss cited the intervention in the aviation sector with aero and arik airlines operations taken over by the company, as a case of how its debt recovery and stabilization framework has helped to salvage sectors in the economy.
AMCON was created to be a key stabilizing and re-vitalizing tool in the Nigerian economy and is expected to wind down operation by 2024.