AMCON Sells 60% Stake In Ibadan DisCo For N100bn

The Assets Management Corporation of Nigeria(AMCON) is in discussion with some foreign asset tracers to recover about N2 trillion bad debts from obligors across the country.

The bad debt bank also said it had  begun the resale of its assets, following 18 months where sales were put on hold, in a move to recoup some of the bad loans it inherited,

Confirming the sale of the Ibadan Electricity Distribution Company (Ibadan DisCo), one of Nigeria’s largest power distribution firms, AMCON promised that, any asset that would be sold by the corporation henceforth, would not be undervalued but command its true value.

Speaking at an interactive session with media executives in Lagos on Thursday, its managing director/CEO, Gbenga Alade said:  “We have also commissioned some foreign asset tracers who will help us locate where some of these obligors have hidden their assets across the globe.”

Similarly, he said, Arik Air (in Receivership) is returning to profitability, as it was second most significant airline last year, with just four carriers, even as AMCON’s engagements with AfreximBank are yielding positive results. “Aero Contractors is also delivering massive value in the country. As of today, Aero is the only airline in Nigeria with an MRO, and that can only be the result of effective and prudent management,” he pointed out.

He also disclosed that the company was finding a lasting solution to its moribund assets across the country, adding that AMCON was currently engaging risk takers who are ready to take up these firms, invest in them and make the work again.

Assuring that the corporation will continue to discharge its mandate with the fear of God, love for the country and within the ambit of the law, he assured that, the new AMCON would recover a lot of the bad loans it inherited through transparent asset sales to ensure that any asset sold is really worth the price.

Earlier, he disclosed that, obligors of the Corporation damaged the Nigerian economy because they never intended to repay the loans they borrowed from various banks

He said, “Unfortunately for them, we were told of this trend before we assumed office. So, we are not deterred by these antics. Our appointment is a call to serve the motherland, and we will deliver that with all humility and sincerity of purpose.”

“Dealing with AMCON’s recalcitrant debtors is not easy, but dealing with such debtors who are in government, holding very high positions across different decision-making portfolios in governance in the country, is one of the most challenging tasks that I have ever faced in my career,” he emphasised.

He noted that the corporation has recommended the sale of its assets, following 18 months where sales were put on hold. This,  he said, was in a move to recoup some of the bad loans it inherited, promising that, any asset that will be sold by the corporation henceforth, would not be undervalued but commands its true value.

To this end, AMCON then renegotiated the earlier sale of Ibadan Electricity Distribution Company (IBEDC) and got about N100 billion from the transaction, almost twice the amount.

The divestment of IBEDC, he said, is almost completed and that AMCON would soon hand over the company to the preferred bidder. Even though the current leadership of AMCON has stretched the bidders to get the best and most realistic value, he said, there are still some distractions out there.

According to him, “For about 1 and a half year, AMCON has not sold any assets until a few weeks ago when we recommenced the sale of assets. IBEDC will soon be handed over to the preferred bidder and we got almost double the price of what it was earlier sold for. The process of this sale was transparent.”