News
Debt: AMCON, moves to tighten noose on debtors *Gives fresh charge to AMPS
As part of the renewed strategy of the executive management of the Asset Management Corporation of Nigeria (AMCON) currently led by Gbenga Alade as MD/CEO, the Corporation at the weekend during an interactive session in Abuja, said it plans to deepen its collaboration with all stakeholders especially the Asset Management Partners (AMPs) scheme, which was established in 2016.
Jude Nwuzo, spokesman of the Corporation, which captured the meeting quoted Adeshola Lamidi, Executive Director in charge of Resolution, whose directorate in AMCON manages the AMPs scheme, in his charge, as saying the new dawn in AMCON which includes proactive and practical applications to debt recovery, the Corporation has decided to take its relationship with the appointed AMPs to the next level, which he also assured would be mutually beneficial to both the AMPs and AMCON.
Welcoming the AMPs to its inaugural interactive session since the assumption of the current executive management of AMCON, he reassured them of the decision of the AMCON management to continue the partnership programme, saying: “Sessions such as this, will provide a timely and strategic opportunity for us to reflect on our journey so far, re-evaluate our recovery strategies and pave the way forward for better effectiveness, and efficiency in conducting this national assignment.
“AMCON’s mandate was at creation summarised in two folds: To stabilise the financial system (which we have done through the acquisition of non-performing loans and providing funds to the banks to avoid a systemic failure in the nation’s financial system, and the recovery of these loans.
“Whilst AMCON has performed very well over the years, there is still room for improvement. Our success depends greatly on you, our Asset Management Partners (AMPs), through your dedication, innovation and professionalism. In achieving greater success, we must deepen collaboration, uphold ethical standards, and embrace strategic thinking in our recovery efforts. This session is therefore designed not only to strengthen engagement with our partners but also to jointly explore practical solutions, share feedback, and forge better ways forward.”
Alade, who declared the event open, underscored the importance of the AMP scheme when he urged the AMPs to take the AMCON debt recovery assignment seriously.
His words: “You must not underrate your importance to the Corporation. You are indeed very critical to our success, as our workforce of less than 500 personnel with offices in Lagos and Abuja may not effectively cope with the over 12,000.00 portfolios in our inventory. Accordingly, the imperative of deepening our mutual synergy is readily apparent.
“With an inevitable Sunset date and recalcitrant debtors, a high premium is placed on debt recovery efforts to ensure that the Corporation achieves its statutory mandate. In other words, with a looming Sunset date, it is necessary that you are more aggressive in your debt recovery drive. We are not oblivious to the herculean challenges confronting you in your debt recovery strides. Certainly, debt recovery has never been easy. However, most of you have surmounted these hurdles with excellent performance to your credit.
“Your consistent feedback from previous sessions and at other fora formed the fulcrum of the Federal High Court (Asset Management Corporation of Nigeria) Proceedings Rules, 2024, and the establishment of the Insolvency Unit of the Federal High Court on Monday, March 24, 2025. In the Notice establishing the Insolvency Unit at the Federal High Court, My Lord the Hon. Chief Judge of the Federal High Court explained that it was created pursuant to the ‘relevant insolvency provisions of the AMCON Act, 2010 (as amended)’ and the Companies and Allied Matters Act (CAMA), 2020.’
“Amongst others, the functions of the Unit include the effective implementation of the provisions of the insolvency laws relating to Company Voluntary Arrangements, Administration, Receivership, Winding-Up and various forms of re-structuring. Notably, this Unit was established in accordance with global best practices on insolvency. It will also offer specialized and standardized services on insolvency. Furthermore, the Unit will serve as a dedicated channel for supervisory and enforcement infrastructure on insolvency issues. For AMCON, this Unit will offer the Fast Track services inherent to the realization of the Corporation’s mandate and the procedure enacted by the Federal High Court AMCON Rules, 2024.
“In addition to the Unit in the Abuja Division, the Corporation is collaborating with the office of the Hon. Chief Judge of the Federal High Court to have this Unit established in Lagos, Port Harcourt, Enugu, Kano, and Kaduna divisions of the Federal High Court. This will enhance your performance and also ease your challenges while delivering your tasks to the Corporation. The FHC AMCON Rules, 2024 have robustly prescribed the procedure for realizing the extraordinary powers of the Corporation as enshrined in its establishment Act 2010 and subsequent amendments. Our resource person will take you through the nitty-gritty of the Proceeding Rules.
“Similarly, the Hon. President of the Court of Appeal, also in the exercise of the powers as the Hon. President of the Court of Appeal approved the Court of Appeal (Fast Track) Practice Directions, 2021 to expedite disposal of matters relating to AMCON debt recovery and indeed other institutions that relate with insolvency. The Fast Track Practice Directions has accommodated the expedient provisions of the AMCON Act, 2010 (as amended) by prescribing that the Court of Appeal can exercise any power conferred by any law and impose conditions, including a condition to pay a judgment debt or other sum of money into Court’s Registry or specify the consequence (s) of failure to comply with the order or the condition. Similar provisions are also captured by the Supreme Court Rules, 2024.”
It would be recalled that when the AMPs scheme was set up in 2016, the strategy was for AMCON to leverage the expertise of the firms to resolve debts that are categorised into two: debts of N100 million and below, and debts of N100 million and above. The Corporation also, through that platform, intends to nurture its transformation into the preferred model for recovery and resolution of non-performing loans in the banking sector and financial services industry. A new sub-sector should emerge with desirable job creation and multiplier impact.
Therefore, the AMPs would, among other things, work with AMCON in tracing, identifying, and locating obligors with the intent to resolve their outstanding indebtedness. They would also be involved in the identification and location of assets of obligors (both pledged and unpledged) to enhance the Eligible Bank Assets (EBAs) value and achieve set recovery objectives, negotiation of settlement and restructuring terms with identified obligors in line with approved guidelines. The AMPs will be vested with the wide powers granted to AMCON by its enabling Act. It would be recalled that almost nine years ago, AMCON called for applications from reputable and qualified entities with the requisite experience to collaborate with it as AMPs to resolve these debts.
Recall that AMCON was established in 2010 as a resolution vehicle to purchase the non-performing loans from banks, inject liquidity into the banks, and subsequently recover the purchased bad loans. Since its establishment, AMCON has successfully stabilised the Nigerian banking sector by restructuring and collecting some of these loans. However, the Corporation is seeking to recover a humongous outstanding debt of over N4.6trillion in the hands of its obligors.
Themed, AMCON Debt Recovery in Renewed Hope Paradigm, the AMCON interaction with the AMPs featured many presentations including, “AMCON Special Powers and the Dissection of the Federal High Court (Asset Management Corporation of Nigeria) Proceeding Rules, 2024, etc; The Role of the EFCC in AMCON debt recovery; Asset Tracing and Documentation; Conventional and Unconventional Asset Tracing as well as AMP case Management and AMP Regime, amongst others.
Peter Obi, candidate of the Nigeria Democratic Congress (NDC), has given assignment to Nigerians to put all those aspiring to take up political positions in the country through the grill to ascertain their level of integrity, saying it was required as a sine qua non for the job they seek.
Obi, who has been a subject of discussion in the polity since the allegation of corruption was levied against him by Kenneth Okonkwo, spokesman of his campaign in 2023, over the conduct of the party’s primaries to choose candidates for the 2027 general elections, said the grilling must start with his own person.
A guest in an interview on a podcast with Rufai Oseni, a popular television anchor, the former Governor of Anambra State, stated that it was actually for this reason that he had now sworn to see the litigation he instituted against Okonkwo through.
His take is that the Nollywood actor should use the courtrooms to give all the details of bad behaviour, following his threat to expose him fully, after alleging that he was collecting money from aspirants in the said election for electoral favours.
Hear him: “The issue of taking Kenneth Okonkwo to court wouldn’t have arisen if he had stopped at those allegations. But he claimed he still has more he would expose about me in the future. So, I am very happy to take him to court so that he can expose me publicly, alongside other Nigerians. If any of them has any criminal allegations against me, they should bring them to court.
“Not just Kenneth, everybody should now say those things they know that is bad about me or I did that is wrong because it’s good for the system, it’s good for the society,” Obi said.
“So, if you know that when we were in primary school, this man was cheating or didn’t go to the primary school, didn’t go to secondary school, didn’t do, if you know this man has done something criminal somewhere, this is time to bring it up.”
For the umpteenth time, Atiku Abubakar, former Vice President Atiku Abubakar has warned about the dangerous implication of using state institutions, particularly the judiciary to destroy Nigeria’s democracy, saying it is an ill-wind that blows nobody any good.
Atiku, presidential candidate of the African Democratic Congress (ADC), speaking on the heels of Tuesday’s verdict of the Court of Appeal, halting the de-registration order by the Federal High Court, insisted that judicial officers must not lend themselves to any act capable of undermining the nation’s democratic process.
The appellate court had ordered a stay of execution on the order made on Monday by Justice Peter Lifu of the Federal High Court Abuja, for the Independent National Electoral Commission (INEC) to deregister the ADC alongside four other political parties).
A totally scandalised Court of Appeal, sitting in Abuja, had taken umbrage, sparing no hard words in upbraiding the lower court judge, stating that his likes were unfit to sit on the bench.
In a unanimous ruling by a three-man panel, the court held that Lifu’s action was “the highest form of judicial impertinence”, stressing that the Supreme Court previously held that a judge who acted in such a manner.
Describing his conduct as the height of judicial rascality, the upper court, stated: “Courts are enjoined to protect their integrity. This Court has supervisory authority over the trial court.
“The decision of the lower court to proceed with the judgment despite the express order of this court is a brazen violation of the hierarchy of the court and the 1999 Constitution.
This court has the duty to invoke its powers in ensuring that its orders are obeyed. The application for a stay of execution is here yet granted. The enforcement of the judgment is stayed.”
Atiku, who hailed the position of the higher court, which restored his hope to be on the ballot as presidential candidate in the 2027 election, also noted the role of INEC as “significant.”
He said: “I welcome the Court of Appeal’s decision to stay the execution of the Federal High Court judgement seeking the deregistration of our great party, the ADC, and four other political parties. It is particularly significant that INEC itself initiated the application for the stay.
“The development reflects growing public concern over judicial contradictions and politically charged rulings within the judiciary. “Any attempt to undermine Nigeria’s hard-won democracy through judicial manipulation is a grave danger to the Republic. If our democracy suffers further injury, history will demand accountability from those entrusted with dispensing justice.
Outside ADC, Lifu’s order, also included: Action Democratic Congress (ADC), Action Peoples Party (APP), Action Alliance (AA), Accord Party (AP) and Zenith Labour Party (ZLP), similarly slammed for allegedly failing to meet the constitutional requirements for continued registration and participation in elections.
“He is running in contempt of the court. Justice Lifu should be arrested because he is acting in contempt of the court which is a criminal act,” were the exact words with which the African Democratic Congress (ADC), demonstrated its angst over the court ruling on Monday, ordering its de-registration as a political party in Nigeria.
A furious Bolaji Abdullahi, spokesman of the party, told his host while appearing as a guest on Monday’s edition of Politics Today, a public affairs programme on Channels Television that the judge of the Abuja Federal High Court who gave the order was actually playing with fire because of the consequences.
Directly accusing him of playing the script of the All Progressives Congress (APC), to ensure that President Bola Tinubu emerged the sole candidate for the 2027 presidential election, the party spokesman, was emphatic that the plan would not work, as head or tail, ADC must be on the ballot in all the elections.
Hear him: “There is a Court of Appeal order saying don’t hear this case until October 27. So, on what basis? You can’t place something on nothing. The Court of Appeal said don’t act on this until I hear it on October 27. So, on what basis did he deliver the judgement
“So, for us in the African Democratic Congress, what we’re convinced and they know is what they have done has no leg to stand on legally. What they want to do is to create doubts in the minds of the people that this ADC has too many legal cases, can we actually run on this? And to distract us. But we’re not distracted.
“We’re very clear. It was in spite of all they have done since ADC came on board that we ran one of the best and one of the most comprehensive direct primaries in the history of democracy in Nigeria. So, we are strong enough to withstand this. And that’s why I’m saying that we are going to contest in 2027. We’re ADC. We don’t buckle before dictatorship.”
Stressing on the implication of the judgement, which also affected Accord Party (AP), Action Peoples Party (APP), Action Alliance (AA), and Zenith Labour Party (ZLP) for allegedly failing to meet constitutional and electoral performance requirements, following a suit by the National Forum of Former Legislators, he said it portended grave danger.
He added: “We are not surprised. We know that the Nigerian people believe that there is a problem with the judiciary, but what we did not expect is the level of judicial rascality that was demonstrated today.
“What we are saying is that we reject it in its totality, and we are saying that the people behind this are playing with fire. Hundreds, if not thousands, have obtained nomination forms and contested elections and emerged as candidates on the platform of the ADC.”
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