AMCON to Deploy International Asset Tracers in Bid to Recover Chronic Debts

The Asset Management Corporation of Nigeria (AMCON) has unveiled plans to engage international asset tracers to locate assets tied to chronic debtors, intensifying its efforts to recover substantial debts owed to the nation.

During an interactive session with media executives on Monday in Lagos, AMCON’s Managing Director and Chief Executive Officer, Gbenga Alade, outlined the corporation’s strategy. While AMCON will continue tracking assets domestically, Alade announced a new focus on leveraging global asset tracers to uncover assets that debtors have hidden overseas.

“AMCON is empowered to trace the personal assets of obligors, wherever they are in the world,” Alade stated. “Some of these obligors are very smart, and some assets have been transferred so far away that they’re out of reach. That’s why we’re bringing in international asset tracers. With their expertise, we can chase down these assets, no matter where they are or how well hidden.”

Alade emphasised the determination of AMCON’s new leadership to ensure that debtors do not escape with Nigeria’s funds. “Even if AMCON winds down, these people should not go away with Nigeria’s money. This money is not AMCON’s; it is taxpayers’ money. We cannot let them just take it and continue their lavish lifestyles,” he declared.

AMCON, established to manage and resolve the non-performing loan assets of Nigerian banks, has traditionally focused on turning these assets profitable rather than selling them. Alade reiterated this approach, saying, “AMCON is not in the business of selling assets but managing them to create revenue and wealth for Nigerians. We only sell assets when debtors give up on repayment and offer their assets as settlement.”

Highlighting the corporation’s recent performance, AMCON reported a profit of N108.4bn for 2023, up significantly from N34.7bn in 2022, largely due to a dramatic reduction in operating expenses from N138.6bn to N44.9bn.

Addressing concerns about Polaris Bank, Alade expressed confidence in resolving issues surrounding its bad loans, which AMCON manages. “Polaris Bank will be sorted out under the new capital requirements. If the bank can’t raise the capital, mergers and acquisitions may be an option. AMCON is focused on recovering bad loans, and our mandate allows us to do things that other banks cannot,” he noted.

The Central Bank of Nigeria recently introduced a new capital threshold for banks operating within the country, which could influence the future of institutions like Polaris Bank.

Meanwhile, the House of Representatives Committee on Banking & Ancillary Institutions has called on AMCON to intensify efforts to recover the nearly N5tn debt owed to it. At a recent retreat in Enugu State, committee chairman Nwachukwu Eze stressed that recovering these debts would significantly boost government revenue and support the administration of President Bola Ahmed Tinubu in delivering on its promises to Nigerians.