AMCON Traces Hidden Assets Of Bank Debtors Abroad, Debt Recovery Hits 87%

The Asset Management Corporation of Nigeria (AMCON) has intensified its debt recovery drive with the hiring of foreign asset tracers to locate properties and funds stashed abroad by recalcitrant obligors, its Managing Director and Chief Executive Officer, Gbenga Alade, has disclosed.

Speaking during a media parley in Lagos, Alade said the move is part of renewed efforts to recover outstanding debts and strengthen the financial system, noting that AMCON has already repaid N3.6tn to the Central Bank of Nigeria (CBN) since its establishment in 2010.

According to him, although the corporation spent N1.7tn to purchase toxic assets from troubled banks at inception, it has remitted more than double that amount to the apex bank, leaving an outstanding balance of about N3tn.

Alade said AMCON played a critical role in stabilising the banking sector during the post-consolidation era when non-performing loans threatened the soundness of several financial institutions.

By offloading toxic assets and injecting fresh capital, he said the corporation helped maintain depositor confidence and ensured that rescued banks could meet their obligations.

He explained that AMCON’s operations align with global corporate insolvency restructuring practices, adding that the law establishing the corporation grants it priority in collateral and contract-related cases, thereby reversing the usual hierarchy of creditor claims.

“This legal framework is deliberate,” he said. “It empowers us to take over eligible bank assets, enforce recoveries, and prepare them for disposal in a way that protects the wider financial system.”

Alade revealed that some high-profile debtors deliberately hid assets across various jurisdictions, prompting AMCON to engage international asset-tracing firms.

“As part of our recovery strategy, we have commissioned some foreign asset tracers who will help us locate where some of these obligors have hidden their assets across the globe,” he said.

He added that many obligors took loans with no intention of repayment and warned journalists to be cautious when such individuals attempt to manipulate narratives in the media.

“Please note that most of them took the loans with no intention whatsoever to repay. No matter the skewed narration they peddle, kindly take it with a pinch of salt and check with us. We have accurate records backed by landmark court judgments.”

Providing an update on AMCON’s operations since he assumed office, Alade said the corporation recorded total revenue of N156.25bn and operating expenses of N29.04bn, translating to a 19 percent operating revenue-to-expense ratio.

He said AMCON projects to generate N215.15bn in 2025, with operating expenses estimated at N29.06bn, putting the operating-to-revenue ratio at about 13.5 percent.

The managing director said that, based on purchase balances, AMCON has recovered over 87 percent of debts, a performance he described as among the best globally despite Nigeria’s complex enforcement environment.

“The Malaysian Danaharta, which is often praised as one of the best-performing asset management corporations, achieved only 58 percent,” he noted.

“The Chinese Asset Management Corporation, despite stricter enforcement laws, achieved 33 percent. Only South Korea’s KAMCO exceeds us at 100 percent, and that was due to the brute force with which they pursued obligors.”

He said AMCON’s performance underscores Nigeria’s capacity to manage systemic crises through structured resolution mechanisms.

“Without sounding immodest, AMCON has done well,” he said. “But we will not relent until all outstanding debts are fully realised.”

Alade also announced that AMCON has engaged consultants to audit ongoing cases across the federal high court, court of appeal, and supreme court to fast-track resolution.

He disclosed that the judiciary recently approved new practice directions on debt recovery, while the federal high court has established insolvency units to handle AMCON-related matters more efficiently.

He praised the support received from President Bola Tinubu’s administration, the judiciary, the CBN, the ministry of finance, the office of the attorney-general, the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices Commission (ICPC), the police and the national assembly.

AMCON was established in 2010 at the peak of Nigeria’s banking crisis to purchase bad loans, recapitalise troubled banks, and restore financial sector stability.

It acquired more than 12,000 non-performing loans from banks, many backed by incomplete collateral or embroiled in protracted litigation.

Over the years, the corporation has relied on a combination of enforcement actions, asset sales, negotiated settlements, and court interventions to recover debts.

Despite public criticism over the scale of unresolved debts, AMCON has remained a key stabilising institution and continues to intervene in major economic sectors, including aviation, energy, manufacturing and real estate.

Reiterating the corporation’s commitment to ethical recovery practices, Alade said AMCON will continue to pursue its mandate “with the fear of God, love of country, and adherence to the rule of law.”

ENDS

AMCON Traces Hidden Assets Of Bank Debtors Abroad, Debt Recovery Hits 87% is first published on The Whistler Newspaper