Don't Miss

AMCON Vows to Collect on All Bad Loans Outstanding

By on January 5, 2012

The Asset Management Corporation of Nigeria (AMCON) has released a statement indicating its readiness to collect on all outstanding bad debts and accrued interest from the debtors that caused many banks to crash before the CBN intervention.

CEO of AMCON, Mustapha Chike-Obi disclosed in November last year that AMCON would be able to collect on 70% of the N 3.14 trillion in bad loans it purchased from banks at N 770 billion.

The Notice to Debtors under Loans Acquired by The Assets Management Corporation of Nigeria reads,

“In furtherance of the above stated intent, AMCON hereby gives notice to all debtors and other obligors connected with any such loans, to, forthwith and without further delay, pay up their debts or present a credible restructuring proposal.

All debtors and connected obligors are further given notice that AMCON shall, without further recourse to them, deploy the full array of its special statutory powers under the AMCON Act to recover the amounts due and outstanding (principal plus accrued interest) in respect of all such loans.

Debtors and other connected obligors may wish to note that AMCON is under a mandatory statutory duty to realise and recover debts owed to it.

Accordingly, debtors and other connected obligors will be well advised to disabuse their minds of any erroneous notions that such debt obligations will not be vigorously pursued and enforced by AMCON. For the avoidance of doubt and contrary to any such patently erroneous notions, AMCON shall discharge its statutory duty dispassionately, and exercise the full gamut of its statutory powers to ensure the recovery of all debts owed to it.”

The statutory powers conferred on AMCON according to the AMCON act accessible here.

The statutory powers include but are not limited to the seizure of movable and immovable property, and the freezing and confiscation of accounts.