AMCON Says 5,000 Debtors Are On The Run
In case you didn’t know, The Asset Management Corporation of Nigeria, AMCON is bad debt bank.
It was established in 2010 by the federal government to buy bad debts from banks to ensure stability in the financial sector.
Recovering debt is no easy job and it isn’t any easier even with government backing.
So, the corporation was giving reports of its recovery progress recently and disclosed that over 5,000 debtors have gone into hiding, with some of them even changing their addresses.
The Managing Director/Chief Executive Officer, AMCON, Mr. Ahmed Kuru, told a press conference in Lagos that the corporation bought 14,000 non-performing loans, adding, that AMOCN borrowed money to buy the loans and now also struggling to pay back the loans.
"There are quite a lot of obligors that cannot pay because they don’t have the ability to pay.
"Quite a lot of them have gone into hiding. More than 4,000 to 5,000 (of the debtors) and that was why, if you recall, not long ago, we had to do some substituted service because some of them have decided to change their addresses.
Also Read: AMCON Recovered 134 Billion Naira In 2016
“The import of our advert is that hiding will not help; we just want to talk to you. We are not the EFCC. To borrow money is not criminal; we must take money from banks. However, what you do after is what will make it criminal. Most loans are taken from depositors’ money,” Kuru said.
Kuru explained that the bulk of the information being used by the corporation was provided by the financial institutions from which the debts were bought.
“One basic information that is required is the address because when you are going to recover money, the first thing is: what is the person’s address? We bought 14,000 loans, and when you talk about 14,000 businesses and individuals, it is not a small number.
“What our initial analysis has shown is that there are about 350 businesses that account for almost 85% of the exposure. And those 350 substantially are identifiable, only that some of the businesses have changed locations.”
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