AMCON Adopts New Debt Recovery Plan

The Asset Management Corporation of Nigeria (AMCON) is making plans to change its debt recovery strategy through the Asset Management Partners (AMPs) scheme and the amended AMCON Act 2019.

At a two-day training organised by the Director-General, AMP, Fatihu Abba, in conjunction with AMCON, stakeholders were on powers and provisions available to them in the recovery of the huge debt of over N5 trillion from obligors.

The event was themed “The Utility of the Federal High Court Proceedings Rules and Complementary Strategies as Critical Tools in AMCON Debt Recovery by AMPs.”

The AMP scheme, which AMCON introduced five years ago, has about 6,000 Eligible Bank Assets (EBAs) at various stages of resolution and about 3,000 matters at various courts.

The AMPs during weekend were exposed to the powers of the Act and, therefore, empowered to make use of the various sections of the AMCON Act 2019 as amended, including Section 6(1) and Section 50A; Section 53(7); Section 53 (3) and (5); Section 34(a) to (c) and 39 (c); Section 49; Section 50 as well as Section 50 and 51 in their recovery efforts.

One of the facilitators at the training, Muyiwa Balogun, said the sections deal with bankruptcy and winding up, interlocutory freezing orders, power to trace and track, custody possession of debtor’s company, vesting legal title, fast-tracking AMCON cases and pre-servatory relief/leave to appeal.

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Balogun, a lawyer and a Partner at Olaniwun Ajayi LP, told the participants that these laws are there for AMCON and the AMPs to use in their recovery drive.

At the training, both the AMCON boss and an Executive Director at AMCON, Eberechukwu Uneze, expressed their willingness to continue to sustain and support the AMP scheme as it has become critical in the recovery drive of AMCON.

Kuru, in his keynote address at the beginning of the training, stated that since the inception of the AMP scheme, AMCON has made significant milestones even though the application of the concept and achievement have not mitigated some key challenges.