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AMCON Says 350 Nigerians Owe it N5.4Trillion

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Over 350 Nigerians are said to be responsible for over 80 per of the N5.4 trillion debt profile of the Asset Management Corporation of Nigeria (AMCON), according to Ahmed Kuru, managing director/CEO, AMCON.

 

According to Kuru, the 350 Nigerians or their businesses, owe a whopping N4.3 trillion of the N5.4 trillion debt profile of the company, and which is over 50 per cent of the 2018 Budget of Nigeria.

 

Speaking on the challenges faced by the company and the hitches experienced during recoveries, the MD/CEO of AMCON said that it was unfair that AMCON was now only known for recoveries and taking over of companies, stressing that when the company played the first two roles of intervention and support, nobody complained.

 

“Our responsibility is first to intervene, provide support and then recover: we have done the two, nobody has complained, now that we are doing the third people are complaining.

 

“The people complaining are those people that do not want to meet their obligations. Some of the obligors owe as much as N200 billion.

 

“We have 350 Nigerians that have obligations or control more than 80 per cent of all AMCONs debt portfolio.

 

“So if you are talking about N5.4 trillion only 350 Nigerians are supposed to pay more than 80 per cent of that amount, and they are normal people you see on the street.” he said.

 

He said that loans recovery was not a pleasant job, stressing that most people dod not want to pay loans.

 

He said that there was no way AMCON or Nigeria was going to write off the over N5.4 trillion debt sitting on the balance sheet of the Central Bank of Nigeria (CBN).

 

He therefore said that the only way to get those evading their paybacks to pay was to use the instrument of the law.

 

He however said that the judicial system was a major challenge to the operations of AMCON.

 

“I can tell you that today, our major challenge has to do with the judicial process.

 

“In other climes what they do is that they allow AMCON to own the assets ab-initio, which means I have paid for the loans from the commercial banks, I have taken over the loan and I will take it over with the assets so I can sell the assets from day 1.

 

“But here somebody can decide to take you to the court and he has to be heard. He can lock you up with judicial processes and technicalities for 10 years, 15 years or even 20 years.

 

“If we can have a system where rightly or wrongly we can conclude a case within three months, we can finish our assignments and go.

 

“The most fundamental thing is that this money must be recovered whether they like it or not.

 

“So it is either they come to us and we negotiate and have a payment plan, or we take over your assets: that is what the law says, it has nothing to do with AMCON,” he said.

 

Kuru regretted that most times, even when the obligors come and negotiate a payment pattern, they end up not paying at all.

 

He therefore added that AMCON had come to the point where it will resort to going directly to confiscate assets rather than wasting time on payment negotiations.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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