AMCON Recovers N2.1trn In 2000 Debt Recovery Cases

ThE Asset Management Corporation of Nigeria (AMCON) has recovered N2.1 trillion debts since its inception despite the serious legal hurdles bank debtors had placed in its path.

The head of corporate communications department at AMCON, Jude Nwauzor, disclosed this while speaking to journalists in Lagos yesterday.

Nwauzor also disclosed that the corporation was involved in over 2,000 court cases, as many debtors not only failed to use the borrowed funds for their intended purposes but also refused to repay the loans.

He urged the judiciary to speed up the adjudication of AMCON-related cases within the 60 to 90-day timeframe outlined by the AMCON Act to improve its effectiveness.

Nwauzor said, “These debtors have played a role in harming the Nigerian economy. The media must not allow them to have it both ways. AMCON believes a stronger collaboration with the media could produce positive outcomes for the nation.”

He also explained that debt recovery is difficult, especially as many Nigerians and businesses do not honour their financial obligations.

Addressing the issue of Arik Air Limited (in Receivership) and its owner, Sir Johnson Arumemi-Ikhide, who allegedly owes AMCON N300 billion, Nwauzor stated that the corporation remained committed to recovering the debt despite ongoing legal disputes and allegations of mismanagement.

He noted that recovering debt is not a pleasant process; obligors often resort to character assassination against AMCON staff and management, vilifying the corporation and intimidating personnel.

Nwauzor claimed that “Arumemi-Ikhide has perpetuated a misleading narrative regarding his debt to AMCON, falsely claiming that Arik never defaulted on payments to Union Bank and feigning ignorance about the debt owed to AMCON.

“He has also alleged that the receivership was premature and claimed his loan was performing.

“These assertions are deceptive. The public should question why the loan was sold and restructured, whether it was performing, and whether he fulfilled the agreed-upon terms. Arik’s debt originally stemmed from loans taken from Union Bank of Nigeria, Bank PHB (now Keystone Bank), and others.

“AMCON clarified that Union Bank classified the loan as non-performing and sold it in 2010, after warning Arik about its financial instability.

“If the loan was performing, why was it sold? Why did he agree to the restructuring? Did he fulfil the agreed terms? AMCON further disclosed that Arik’s negative equity value was ₦80 billion in 2016, with total liabilities reaching ₦151 billion. By December 2016, the airline’s negative shareholder capital had surged to ₦139 billion, nearly equivalent to its AMCON debt.

“After years of financial distress, AMCON took over Arik in 2017 due to chronic mismanagement, flight cancellations, unpaid staff salaries, and regulatory violations. At that time, Arik was on the verge of collapse, struggling to maintain its aircraft and meet its operational commitments,” Nwauzor alleged.