AMCON woos investors on long-term opportunities

The ongoing recession notwithstanding, Asset Management Corporation of Nigeria (AMCON), at the weekend, reiterated the potential inherent in the economy for long-term investors.

Besides, the bad debt company pointed out that the momentary challenge also makes it the right time for strategic investors to take their position in the country, as it would soon be over.

The remark became necessary, as short-term investments in the economy at present would appear gloomy and discouraging, given the huge distortions of recession.

It also serves as assurance to prospecting investors, as AMCON affirmed that it is inundated with proposals from different investors, which only would be successful if it is targeted at long-term maturity.

Managing Director/Chief Executive Officer of AMCON, Ahmed Kuru, who made the observations, said recession, which the country slipped into last year, should not in any way deter serious-minded investors, as the country would in no distant time come out of it.

He said with such strategic investment plan, reaping the full benefits of the investment was guaranteed because Nigeria remains one of the most promising economies in Africa, which explained why AMCON still receives a lot of proposals from investors.

“Investments now have to be for businesses and business owners that have long-term interest in Nigeria; long term objectives and long term strategy. Any investor without these characteristics may be overwhelmed as a result of the present situation of the economy, which is temporary to say the least.

“So, as far as I am concerned, the present economic challenge is actually the right time to invest in Nigeria; a time to lay a solid foundation and then grow with the economy in no distant time,” he said.

He explained that the ongoing efforts to fight corruption, provide infrastructure and strengthen institutions in the country should be a reassurance to investors about the new opportunities in Nigeria.

Kuru noted that AMCON would continue to sustain its tempo in recoveries, which began last year by strategically focusing on value-enhanced exits of its portfolios.

This, he said, include continued negotiations and resolution of loans through cash recoveries, asset forfeitures through negotiation or enforcement; capital restructuring for short to mid-term exits, as well as joint venture arrangements for asset operations and land development.

AMCON, now the second largest land and real estate property owner in Nigeria, is also exploring the creation of a robust Real Estate Investment Trust Scheme (REITS) that would provide market driven exit for its real estate assets.

It is also exploring additional capital market instruments for institutional investors such as the Pension Fund Administrators (PFAs) and other interested parties.

With these opportunities, Kuru said AMCON has a bouquet of attractive assets that would appeal to different investors locally and internationally.