AMCON Seeks Media Support in Recovering Over N4 Trillion Debt

The Asset Management Corporation of Nigeria (AMCON) is intensifying efforts to recover over N4 trillion in outstanding debts and has urged the media to up the ante in holding defaulters accountable.

The call for media scrutiny was made by AMCON’s Head of Corporate Communications, Mr. Jude Nwauzor, during a press briefing in Ikeja, Lagos, on Friday. He emphasized that exposing high-profile debtors who continue to live lavishly despite owing billions could help compel them to meet their financial obligations.

One of AMCON’s major concerns is that many debtors, despite owing billions, continue to maintain luxurious lifestyles, owning private jets, high-end properties, and other expensive assets while refusing to settle their debts.

“We believe that when these obligors, who own some of the private jets you see at our airports, are challenged by the media, they will not be as bold and audacious as they have become,” Nwauzor stated.

Calls for AMCON’s Disbandment Grow Louder

However, this appeal has been met with public skepticism, as many argue that AMCON’s repeated attempts at debt recovery have yielded little results over the years. Many Nigerians are questioning why an institution created as a temporary measure continues to struggle with the same challenges more than a decade later.

Established in 2010 following the banking sector crisis, AMCON was tasked with purchasing non-performing loans from distressed banks, stabilizing the financial sector, and recovering assets from delinquent debtors. The corporation was intended to wind down operations once its mission was accomplished.

However, over the years, AMCON has been plagued by allegations of inefficiency, corruption, and political interference, leading many to question its continued relevance. It is largely believed that the corporation has failed to deliver on its mandate and has instead become another bureaucratic institution draining public funds.

Social commentators and financial experts argue that rather than appealing to the media for help, AMCON should account for its own inefficiencies and be subjected to an independent audit to determine why debt recovery remains a struggle despite its sweeping powers to seize assets and take legal action against defaulters.

Many Nigerians believe AMCON’s existence has become counterproductive, as it has turned into an entity that complains more than it delivers, rather than efficiently recovering assets and closing its books.

Resistance and Diversion of Funds Complicate Recovery

Nwauzor acknowledged that some debtors misused the borrowed funds, further complicating AMCON’s recovery efforts. Instead of using the loans for business expansion or productive investments, some debtors allegedly diverted the funds for personal enrichment.

He noted that AMCON’s attempts to recover debts often face hostility, with some debtors going to extreme lengths to attack the corporation’s credibility and discredit its staff.

“The leadership of AMCON knows that there is no nice way of recovering debt. Obligors could go to any length to assassinate the characters of AMCON staff members and its management,” he explained.

However, AMCON insists that it will pursue all legal avenues to ensure full debt recovery.

The Economic Impact of Unrecovered Debts

The failure to recover these debts poses a significant economic risk to Nigeria. If AMCON is unable to recover the funds, the burden will ultimately fall on taxpayers.

“If at sunset AMCON is unable to recover the huge debt of over N4 trillion, it becomes the debt of the Federal Government of Nigeria for which taxpayers’ money will be used to settle,” Nwauzor warned.

He lamented that a small group of reckless individuals is placing a financial burden on the entire country, stressing that this situation must not be allowed to continue.

However, critics have pointed out that AMCON itself has contributed to the problem, as many of its transactions lack transparency. Over the years, there have been allegations that AMCON has engaged in shady asset sales, where distressed assets are sold to politically connected individuals at a fraction of their true value.

AMCON’s Legal and Strategic Moves

In recent years, AMCON has intensified legal actions against notorious debtors, securing court orders to seize properties and freeze accounts. However, the process is often delayed by prolonged litigation.

To tackle this, AMCON has:

• Partnered with the judiciary to ensure swift adjudication of debt-related cases.
• Collaborated with law enforcement agencies to recover assets linked to delinquent debtors.
• Worked with the National Assembly to tighten laws preventing debt evasion.

Despite these measures, public confidence in AMCON remains low, as many believe the agency has become another wasteful government institution that exists merely to sustain itself rather than deliver meaningful results.