is a body established by the Act of the National Assembly of Nigeria of July 2010 with an intended 10 years life Span. The concept is in consonant with the operation of the National Asset Management Agency of the Republic of Ireland and Malaysia Pengurusan Danaharta bid. The body acted as the buyer of banks for the Nigerian Government by acquiring the Non-performing loans. The original book value of the acquired NPLs was ₦4.02trillion at a price of ₦1.76trillion with a commensurate issue of Zero Bond for the NPL acquired.
The other day, it was all over news media the take over or purported takeover of Bar. Jimoh Ibrahim assets. Due to a bad debt of about =N=120B debts. If not for his audacious move by the gentle man, alas it will have been too late to remedy the situation. Whoever sign off the loan should face the music squarely!
In the recent past AMCON whose responsibility and primary aim is to buy back debt ridden private company alike is sudden waken up to its primary responsibility. But there is a need thread softly in doing so.
Many of such companies will be taken over by AMCON in the nearest future, going by the long list of debtor
http://www.amcon.com.ng/documents/List-of-AMCON-Debtors-100.aspx
The move by AMCON to recover these money from debtors should not be Politicized
Ifeanyi Uba led Capital oil and gas industries limited had been shot down by AMCON because of =N=104.80B debt. This is still a shock to many people. Considering the important role of the Company in Down stream sector one would have wish for amicable solution to the problem. The fate of thousands of workers whose living wages has been threatened.
Only yesterday 22nd June 2016 the news of AMCON taking over Silverbird group properties over debt of =N=11B which led to many young people calling themselves out on social media . In-fact it was trending topic for most part of the day
While no one is encouraging debtor to renege on their pledge to payback bank loans. But one is curious to ask some the factor leading to inability of business to honor their financial obligations
Bellow are some the reason for bad debts, in Nigeria for instance, there is little or no difference between interest rate for long term loan and short term loan thereby leading to many company going Under.
- High rate of interest
- Government policy
- High rate of inflation
- Corruption and Nepotism
- Global economic recession
It is therefore our view that AMCON should define a means of taking over these debt ridding companies in other to avoid National employment crises. Government need to create more jobs.
a stitch in time saves nine
a stitch in time saves nine
