The Asset Management Corporation of Nigeria, AMCON was set up in 2010 through the Central Bank of Nigeria to bail out banks through the purchase of non-performing loans and to recover loans from debtors.

Since then, it has recovered only 1 trillion naira from debtors of banks whose loans were taken over by the corporation.

The Minister of Finance, Mrs Zainab Ahmed, said this in Abuja while inaugurating the board of AMCON under the chairmanship of Mr Muiz Banire (SAN).

The finance minister said that out of the recovered amount, cash accounted for 60%, while non-cash assets such as properties and equity securities accounted for the balance of 40%.

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She said over the same period, AMCON’s repayment of its indebtedness to CBN was over 1 trillion naira, while its total debt obligation to the CBN currently stood in excess of 5 trillion naira.

She explained that going by the current economic realities, the Federal Government could not afford to write-off the debts in the short term.

She called on the new management board to come up with creative strategies to recover the outstanding loans since it had now become a moral obligation for the government to recover the outstanding liabilities.

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