350 Debtors in Nigeria owe AMCON N3.6 trillion ($9.4 Billion)
This is indeed very revealing: "The Asset Management Corporation of Nigeria (AMCON) has said that 350 debtors in Nigeria owe it N3.6 trillion". That is what happens when a country creates a special company to absorb stupid debts instead of allowing banks to take over companies which are not servicing their loans. It is called privatizing profits but socializing losses. Nigeria should avoid organizations like AMCON and permit the principles of free markets to work.
The corporation’s Group Head of Enforcement, Joshua Ikioda, disclosed this at two-day training for Federal High Court legal assistants and court registrars in Abuja...If recovered, he noted that the N3.6 trillion would be enough to complete the revival of the moribund Ajaokuta Steel Company in Kogi State, and capitalise over two million micro-businesses with N2 million each or 200,000 Small and Medium Enterprises (SMEs) with N20 million per SME.
One of those bad calls from Lamido Sanusi as the then CBN honcho, but again - Nigeria being what it is, once you open a government agency here, closing becomes a problem, so they end up supervising failures and losses, year after year.
The bulk of these bad debts are irrecoverable, so it's pitiful to still refer to them as 'debts', when the owing enties are either dead or paralysed.
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Whether in war or peace times, the small guys remain the endangered species, because everything is rigged against them. Companies are run by people, but those who made the bad calls or mismanaged their companies' resources are never held responsible, because an incorporated company has a life of its own...
To cut down our losses, we first need to disband AMCON, because there's no valuable asset to manage there, just loss making and dead entities.
When your heart is pure, and your mind is bright, it saves you from bad judgements; the creatures making big calls on our behalf are too compromised to see clearly.
Our breeds are not just good enough, we need new seeds that can produce fine breeds.