Yemisi Izuora
The Asset Management Corporation of Nigeria (AMCON), has restructured its internal process to accelerate speedy disposals of assets.
The Managing Director/Chief Executive Officer of AMCON, Mr. Ahmed Kuru has disclosed that Corporation is now better positioned in its asset resolution operations.
Declaring open a 2-day Asset Sales Strategy Retreat, which just ended in Abuja today, Kuru, who was represented at the opening by Mr. Aminu Ismail, the Executive Director in charge of Operations stated that part of the strategy was to expand the scope of its sales strategy by engaging professionals from the real estate sector including legal experts and regulatory stakeholders and cross-fertilise ideas on better measures to follow to enable AMCON dispose its huge assets at good value and in good time in line with AMCON mandate.
“As you may be aware, one of the key objectives of AMCON is—to obtain the best achievable financial returns for all assets acquired. Following the acquisition of Eligible Bank Assets (EBAs), AMCON is now saddled with the responsibility for recovering the bad loans either through cash repayments or asset forfeitures/foreclosures. In fact, the bulk of recoveries, which have been recorded at AMCON are in form of asset recoveries. Considering the fact that AMCON’s obligations to the Central Bank Nigeria (CBN) is in the form of cash repayment, AMCON therefore has the responsibility of converting the assets into cash in order to meet the repayment obligations,” he said.
Providing further clarifications to participants, Kuru added that AMCON from inception in 2010 to December 2017, recorded total recoveries of N731billion (excluding claw backs). Out of this amount, properties accounted for approximately 35 per cent. On the flip side, he stated that the Corporation noticed an increasing decline in its ability to dispose of assets at competitive market rates due to the several factors including inflation among other market dynamics.
With such indices, Kuru again said, “At AMCON, we have realized that we cannot continue to do business as usual – it has therefore become imperative for us to seek more innovative ways of converting our huge portfolio of assets into liquid cash as quickly as possible. We have convened some of the most resourceful real estate professionals and legal experts to this forum to help brainstorm through the issues and proffer practical solutions to the challenges confronting AMCON. We also invited critical regulatory stakeholders to contribute to the discourse toward finding workable solutions.”
Also speaking at the retreat, Dr. Eberechukwu Uneze, Executive Director in charge of Asset Management at AMCON, who also chaired the plenary session stated that there was dire need to have professionals, experts and agencies collaborate with AMCON because the Corporation has a stockpile of assets, which it is finding difficult to dispose in the regular open market. These assets, he said, cut across critical sectors of the economy such as real estate, energy, transportation and aviation, maritime, agriculture and manufacturing just to mention a few, all of which he said must be disposed as quickly as possible against all odds the agency is challenged with.