The nation’s bad bank- Asset Management Company of Nigeria (AMCON) said its total debt recovery in 2016 stood at N134 billion, although not all were cash.The breakdown of the figures showed that N86.9 billion was collected in cash; N30.46 billion in assets forfeiture; N7.9 billion in sales of properties; while dividend and other shares amounted to N8.7 billion.
Meanwhile, it also said it is nearing the completion of the sale of Peugeot Automobile Nigeria (PAN) Limited.The move, which is part of AMCON’s strategies to recover huge debt in its books, would see the local car assembly being off-loaded to local investors.
The assembly plant, according to AMCON, is estimated at about N15 billion ($49 million) by the subsisting valuation, with the capacity to assemble 90,000 cars yearly, under the technical partnership of PSA Peugeot Citroen.
Already, Africa’s richest has appeared in the list of top contenders for the purchase of the moribund assembly plant, although in alliance with Bank of Industry, Kaduna and Kebbi states.
The development was contrary to public speculations that the recently bridged Arik Airline and Aero Contractors would either be put on sale or converted to National Carrier status.
But AMCON’s Chief Executive Officer, Ahmed Kuru, who not only refuted the claims, told journalists yesterday, that the problems of Arik and Aero were to numerous for such plan.
According to him, the bids processes have been concluded since two months ago, while “we are now waiting for the approval of the Central Bank of Nigeria.” Kuru noted that the agency had since two years ago, stopped putting money into establishments taken over, as well as buying loans of anymore.
He noted that except the worst-case scenario of Arik Airline, what it has concentrated on whenever it takes over a company is to explore options to sustain it for the sake of Nigerians employed there.
Similarly, Kuru pointed out that the agency’s balance sheet has a N5 trillion asset, which it spent about N1.7 trillion to purchase.However, the assets were worth about N3.3 trillion, while a N2.2 trillion financial accommodations that were not backed by any asset were added, which put the total debt at over N5 trillion.
He affirmed that while some obligors are doing well despite the economic recession, others are not only unwilling to pay, but has also refused opportunities to renegotiate in the last five to six years.
He lamented that in the cause of business, AMCON has been facing a lot of challenges and 2016 has been very tough for the corporation, as “recovery was very slow because of the present economic predicament in Nigeria.”
The Chief Finance Officer of AMCON, Olugbenga Ataiyero, said the institution was able to moderate its losses in 2016, as the standalone entity made a loss of N254 billion compared to N304 billion reported in 2015, while as a Group, it made a loss of N352 billion against N295 billion in 2015.
This post was first published on Guardian.