The Asset Management Corporation of Nigeria (AMCON) has embarked on a renewed drive to divest its portfolio of distressed assets and intensify debt recovery efforts, marking a significant step in its mandate to stabilize the Nigerian financial system. A key development in this renewed push is the sale of the Ibadan Electricity Distribution Company (IBEDC), a transaction fraught with controversy and legal challenges. AMCON, holding a 60% stake in IBEDC, declared the sale completed despite ongoing litigation, underscoring its determination to recoup public funds and resolve the burden of non-performing loans. The corporation emphasized its commitment to transparency and due process, rejecting accusations of secrecy and undervaluation in the IBEDC transaction.
The sale of IBEDC follows a revised bidding process, with AMCON rejecting an initial offer deemed significantly below the asset’s value. The Managing Director, Gbenga Alade, highlighted the corporation’s resolve to secure a fair price, stating that the final offer received was nearly double the initial bid. While the exact sale price remains a point of contention, with conflicting reports and ongoing legal disputes questioning the valuation, AMCON maintains that the transaction was conducted in the best interest of the Nigerian public. The corporation asserts that it will address any legal challenges head-on, demonstrating a steadfast commitment to completing the divestment process.
The IBEDC transaction has attracted considerable scrutiny and criticism. A lawsuit filed by the African Initiative Against Abuse of Public Trust alleges that the sale was conducted in secrecy and that the 60% stake was significantly undervalued compared to its 2013 valuation. This underscores the complexities and challenges faced by AMCON in its efforts to recover debts and divest assets. The corporation, however, refutes these allegations, emphasizing its commitment to transparency and adherence to due process. AMCON attributes such criticisms to the tactics employed by recalcitrant debtors seeking to evade repayment obligations.
AMCON’s renewed focus on asset recovery extends beyond the IBEDC sale. With the lifting of the moratorium on asset sales, the corporation has resumed divestments across various sectors, reporting significant progress in recovering billions of naira from the sale of high-profile assets. The management of Arik Air (in Receivership) and Aero Contractors are highlighted as success stories, with Arik Air returning to profitability and Aero Contractors operating the only Nigerian airline with a Maintenance, Repair, and Overhaul (MRO) facility. These achievements are attributed to effective and prudent management by AMCON.
AMCON’s debt recovery strategy also involves pursuing assets concealed overseas. The corporation has engaged foreign asset tracers to locate assets hidden by debtors globally, demonstrating its resolve to leave no stone unturned in its pursuit of recovered funds. This international dimension underscores the scale and complexity of the challenges faced by AMCON in recovering non-performing loans. The commitment to pursuing assets globally signals a robust and proactive approach to debt recovery.
AMCON’s debt recovery efforts benefit from strong support from various government agencies and institutions, including the Presidency, the Central Bank of Nigeria, the judiciary, the Federal Ministry of Finance, the Attorney General of the Federation, the Economic and Financial Crimes Commission (EFCC), the Police, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), and the National Assembly. This collaborative approach reflects a concerted national effort to address the issue of non-performing loans and stabilize the financial system. The broad base of support reinforces AMCON’s mandate and strengthens its ability to pursue debtors and recover public funds.
