Gbenga Alade: AMCON has repaid N3.6trn to CBN since its establishment

The Asset Management Corporation of Nigeria (AMCON) says it has repaid about N3.6 trillion to the Central Bank of Nigeria (CBN) since its establishment in 2010.

Gbenga Alade, the managing director and chief executive officer (CEO) of the corporation, disclosed this during a media parley in Lagos.

He said although AMCON spent N1.7 trillion to purchase toxic bank assets, it has now repaid N3.6 trillion — leaving an outstanding balance of about N3 trillion to the apex bank.

Alade said the corporation restructured the banking sector by offloading toxic assets and injecting fresh funds, aligning with corporate insolvency restructuring principles.

The CEO said the approach helped to maintain depositor confidence and ensured banks could meet obligations, as AMCON took over eligible bank assets and prepared them for disposal.

He said the law that created AMCON reverses the hierarchy of contractual rights and security law by giving the corporation priority in collateral and contract-related cases with debtors.

“As part of our recovery strategy, we have commissioned some foreign asset tracers who will help us locate where some of these obligors have hidden their assets across the globe,” Alade said.

Speaking on financial performance since he assumed office, he said AMCON recorded a total revenue of N156.25 billion and operating expenses of N29.04 billion, representing a 19 percent operating revenue, revenue ratio.

He said AMCON expects to generate N215.15 billion in revenue in 2025, with operating expenses projected at N29.06 billion, putting the operating-to-revenue ratio at about 13.5 percent.

‘AMCON HAS RECOVERED 87% OF DEBTS’

Further speaking on the agency’s performance, Alade said based on purchase balances, AMCON has recovered over 87 percent of debts.

He said the record trumps most global asset management corporations despite Nigeria’s challenging recovery environment.

“The Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s only achieved 58 percent.The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 percent,” the AMCON chief said.

“Only the Korean Asset Management Corporation (KAMCO) South Korea has achieved more recoveries than AMCON, with about 100 percent. This was due to their brute force with which they chased the obligors.

“Without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realised.”

He also highlighted progress on legal enforcement, saying the corporation has hired consultants to audit cases across the federal high court, court of appeal, and supreme court.

Alade said the judiciary has approved new practice directions for debt recovery, noting that the federal high court has created insolvency units to fast-track pending legal disputes.

The managing director said AMCON’s efforts continue to receive support from President Bola Tinubu, the judiciary, the CBN, ministry of finance, the office of the attorney-general, the Economic and Financial Crimes Commission (EFCC), ICPC, the police, national assembly and other agencies.

He, however, warned that some debtors may attempt to manipulate public narratives.

“Please note that most of them took the loans with no intention whatsoever to repay the debt,” Alade said.

“So, I beg you, no matter the skewed narration they peddle in the newsrooms, kindly take it with a pinch of salt, and touch base with us because we have the accurate records, which is evident in some of the landmark cases that we have won against many of the obligors.”

He said AMCON would continue to pursue recoveries “with the fear of God, love of country, and adherence to the rule of law”.