By Obinna Chima
The Asset Management Corporation of Nigeria (AMCON) has disclosed that the N4.4 trillion, which is owed the corporation is bigger than the entire 2021 capital expenditure budget of the federal government of Nigeria, which stands at N3.85trillion.
The amount owed the corporation is also bigger than the N3.12trillion for total foreign debt service for 2021 and personnel cost of N3.7 trillion in the federal governmentâs budget.
Owing to this, AMCON has called on all agencies of the federal government and all stakeholders to join its debt recovery drive to guide against the huge opportunity cost of not recovering the debt on the economy.
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Indigenous debt-ridden airline, Arik Air, has refused to speak on the move by the Asset Management Corporation of Nigeria to use its aviation assets especially planes to launch a multibillion naira airline.
The PUNCH had exclusively reported that the new international airline planned by AMCON, to be named Nigeria Eagle, may take to the sky with at least 10 planes as early as June, according to insiders.
It was also learnt that AMCON, a Federal Government-owned bad debt manager which owns controlling stakes in both Arik and Aero Contractors, chose to establish the new airline as a clever means of wriggling out of the multibillion naira liabilities currently hanging on the two carriers.
The Asset Management Corporation of Nigeria (AMCON) on Monday disclosed that the total of outstanding debt by loan defaulters on its books has dropped by |
AMCON: 350 debtors holding on to N3.6 trillion
January 11
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This was included in a paper presented by Joshua Ikioda, the group head of AMCON enforcement, during a two-day training for federal high court legal assistants and court registrars in Abuja.
Jude Nwauzor, AMCON’s spokesman, said the training was organised by the Fatihu Abba-led Legal Academy to enlighten legal assistants and registrars of the federal high court on AMCON’s mandate.
AMCON was established in July 2010 to help resolve non-performing loans of banks by buying bad loans and recovering such from debtors and their promoters.
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Ikioda said the total N4.4 trillion held by AMCON is bigger than the N3.85 trillion capital expenditure budget of the federal government for 2021, the N3.12 trillion for total foreign debt service and personnel cost of N3.7trillion.
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The Asset Management Corporation of Nigeria (AMCON) has called on all agencies of the Federal Government and all stakeholders to join its debt recovery drive as the company hopes to secure an outstanding N4.4trillion.
AMCON in a statement issued on Sunday noted that a failure to recover the debt would further worsen the nation’s economy.
According to the agency, the N4.4trillion is bigger than the entire 2021 capital expenditure budget of the Federal Government, which stands at N3.85trillion.
If recovered, the agency believes that the money can go a long way in reviving the iron and steel sectors, as well as improving electricity in the country.