Vice-President Yemi Osinbajo says
the federal government will no longer do business with those indebted to Asset
Management Corporation of Nigeria (AMCON).
Osinbajo said those who are
indebted to the government — via AMCON — are direct enemies of both the
government and the people of Nigeria.
The VP said the debtors have made
it impossible for the corporation to resolve its outstanding N5 trillion debt
thereby holding the entire nation to ransom with their bad behaviour.
Osinbajo, who is the chairman of
the economic council, also disclosed plans by government to set up an
inter-agency collaboration framework that would comprise relevant government
Ministries, Departments and Agencies (MDAs) and supervised by the office of the
vice president to ensure that institutions and individuals that are indebted to
AMCON are not allowed to do business with government henceforth.
The VP said this when he received
some board members and Management of AMCON at the state house, Abuja, led by
Muiz Banire, the board chairman.
He said the government will no
longer fold its hands and allow a few individuals that owe AMCON huge sums of
money walk freely on the streets in the country.
“I think the time has come for us
(Federal Government) to set some examples with some of these top debtors of
AMCON, which I believe will set a good example and serve as a deterrent to
others,” Osinbajo was quoted to have said.
“I congratulate AMCON for the
work done so far having recovered over N1trillion and counting both in cash and
in assets. The work you do as a recovery agency is not something that is
particularly easy or encouraging because we all know how Nigeria works.
“But we are committed to working
more closely with your administration to ensure that these monies are recovered
from AMCON obligors because it will help our economy and provide the government
with more money to continue to improve on the development of infrastructure
across the nation.”
Osinbajo said in the next couple
of days, he would invite the AMCON team alongside other relevant MDAs to
discuss and fine-tune plans on how to ensure that anybody or agency that is a
debtor to AMCON are completely made to face the wrath of the government.
According to a statement by
AMCON, Banire said AMCON’s visit to the VP was to congratulate him and
President Muhammadu Buhari on their recent victory at the polls.
He also highlighted some of the
challenges and frustrations faced by AMCON as a result of the attitudes of some
debtors who behave as if they are above the law in the country.
While calling on the government
to rally round AMCON if they indeed want the corporation to succeed Banire
said, “AMCON has been able to recover over N1 trillion since inception to
2018-year-end.
Out of the recovered sum, cash
accounted for 60% while non-cash assets such as properties and equity
securities accounted for the balance of 40%. Over the same period, AMCON’s
repayment of its indebtedness to the CBN was over N1 trillion.
“As at end of December, 2018,
AMCON’s Assets Under Management (AUM) amounted to about N172.5 billion. It is
noteworthy to state that out of the total real estate properties, assets
available for sale is valued at N62 billion.
“Of this N62 billion about 83%
comprises of bare land and other assets, which may need considerable
improvements to convert into income generating assets.
“Your Excellency may recall that
in September 2018 following the takeover of Skye Bank Plc. by the Central Bank
of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC), AMCON
was again invited to inject a total sum of NN898.45 billion as capital thereby
leading to the emergence of another bridged bank named Polaris Bank Limited.
“The intervention in Skye Bank
was caused majorly by internal abuse by the operators. As a result of that
development, AMCON’s total debt obligation to the CBN, is currently in excess
of N6 trillion.
“And it is evident that the
Federal Government cannot afford to write off this debt in the short term,
hence, our moral obligation to pursue obligors and recover the debts owed.
“But, despite the successes
recorded, the corporation has been facing a number of challenges, which
includes obligors resorting to all manner of tactics to avoid honouring their
obligations.
“Whilst some are still enjoying
government patronage, others are using the judiciary and adopting on legal
technicalities to stall recovery, which is why we need a new strategy to enable
AMCON meet its mandate before sunset.”
Ahmed Kuru, the AMCON MD, thanked
the vice-president for his support to AMCON all these years however added that
he cannot wait for the take-off of the inter-agency collaboration.
Kuru also reminded the VP that
AMCON’s debts sit on the government’s balance sheet with CBN, and failure to
recover may result to serious consequences including recourse to taxpayers’
money, which must be avoided.
He said for an organisation like
AMCON with sunset date, all hands must be on deck to provide the support
required. According to him, considering the huge portfolio of debt, no obligor
must be allowed to go scot-free no matter how highly placed in society.
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