The Asset Management Corporation of Nigeria (AMCON) said on Friday that it has successfully settled over 56 percent of the total N3.7 trillion (about N2.072 trillion) bad debts it had to manage from various individuals, groups and organisations in the country.
Managing director (MD) of the corporation, Ahmed Kuru, said in Lagos that the agency also succeeded in recovering over N644 billion.
Although Mr. Kuru clarified that the settled cases did not translate into actual money in the government’s purse, it was sufficient pointer that AMCON was already on its way to meeting its objective of protecting the country’s economy and removing bad debts in the financial system.
He said the main challenge in the corporation’s assignment was within it operational structure, as the framework was a bit faulty.
“You can’t say that you are taking over somebody’s liability, and that the person’s business has totally failed in the commercial bank, and you are giving the commercial bank liquidity,” he said.
“Some of these guys you see, the moment you see the lifestyle and ask them to come and pay the money they are owing, it becomes a problem. So we understand these things. Kuru, flanked by AMCON executive directors
The managing director said AMCON was neither set up to make profit within a 10-year lifespan, nor to kill businesses, but to deliver a social benefit of saving the economy and businesses from bad debts.
“The most important thing, like we always tell our debtors, is to come and talk to us. We are supposed to help them. We are supposed to support them. AMCON is not out to kill businesses, rather to support businesses. We have records to show businesses that we have supported and continued to support.
“We are supposed to be the economic catalyst; to help with the economy. That is why we always advise people to understand what the issues are, so that we can work together. With 12,700 accounts, it is a basket where opportunities can come up,” he said.
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