The Asset Management Corporation of Nigeria (AMCON), a government-owned behemoth established in the wake of the 2008/2009 financial system crisis to save banks from collapse, has repaid about N3.6 trillion to the Central Bank of Nigeria (CBN) since 2010, when it commenced operations.

The amount, which includes interest and principal, is over N1.7 trillion, the CBN borrowed to fund the takeover of the corporation. The CBN is relying on AMCON recoveries and sinking fund financed by 0.5 per cent of banks’ total assets to liquidate the debt, as well as the accruing compounding interests.

Managing Director and CEO of the corporation, Gbenga Alade, disclosed the figure yesterday at a media parley in Lagos, putting the outstanding debt to the CBN at N3 trillion.

AMCON would have paid the CBN, which guaranteed its seed capital, about N6.6 trillion when it eventually liquidates the debt owed to the Central Bank.

Alade said AMCON restructured the banks by offloading toxic assets from their books and injecting fresh funds, aligning with corporate insolvency restructuring principles.

With the mechanism boosting the confidence in the financial market, depositors have left their deposit banks, arming them with the ability to honour their obligations.

AMCON has helped to manage the acquired eligible bank assets (EBAs) preparatory to their disposal.

“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,” Alade said.

He said the corporation recorded total revenue of 156.25 billion and total operating expenses of N29.04 billion last year, putting that total operating revenue/revenue ratio at 19 per cent.

Alade projected total revenue for 2025 at N215.15 billion, with total operating expenses expected to close the year at N29.06 billion. That will bring down the cost-to-revenue ratio to about 13.5 per cent.

“It is important to stress that the corporation has done tremendously well, especially when compared to other notable government-owned asset management corporations around the world. Based on the balance at purchase, AMCON outperformed its peers all over the world by achieving over 87 per cent recoveries despite the unique challenges associated with debt recovery in Nigeria.

“The Malaysian Danaharta, which is adjudged as one of the best performing asset management corporations, only achieved 58 per cent. The Chinese Asset Management Corporation, despite its stricter laws, achieved just 33 per cent. Only the Korean Asset Management Corporation (KAMCO) of South Korea has achieved more recoveries than AMCON, with about 100 per cent success. This was due to their brute force with which they chased the obligors,” he said.

Despite KAMCO’s record success, the company continues to operate with slight modifications to its mandate.

Alade noted other noted asset management companies have transitioned into a perpetual institution of the various governments, including. This, he specified, includes China Asset Management Company, Federal Deposit Insurance Corporation (FDIC) of the United States and KFW Germany.

“Without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realised,” Alade insisted.

He said the current EXCO of the corporation has engaged seasoned consultants to carry out a comprehensive audit review of all AMCON cases across the courts.

The AMCON boss said the leadership of the judiciary at the three layers of the courts shared the pain of AMCON and acknowledged the challenge the obligors pose to the corporation.