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Femi Otedola Smiles to the Banks Again, Pays Off N141 billion AMCON Debt

By on October 1, 2012

Femi Otedola and President JOnathan

Controversial billionaire Femi Otedola can literally be said to be smiling to the bank as reports have shown he has paid off his N141 billion loan to the Asset Management Corporation of Nigeria (AMCON).

Otedola and his companies were the biggest debtors in the country, according to information released from the Central Bank of Nigeria last month. The businessman who is a close confidante of President Goodluck Jonathan had borrowed N192.4 billion from several top-tier banks over the years.

However a turn in the business fortunes of Mr. Otedola caused him to sustain heavy losses which caused a serious problem with him and the banks, particularly Access Bank. Zenith Bank also called in a mortgage on Stallion House to settle the debts Mr. Otedola owed.

Despite that, AMCON still bought the loans from the banks for N141 billion, at a discount of over N50 billion.

Details are yet to emerge on how Mr. Otedola paid his loan and AMCON is not forthcoming with the details, despite the fact that AMCON is a public institution set-up with taxpayers money and Nieria’s commonwealth.

Managing Director of AMCON, Mustapha Chike-Obi said Otedola’s debts were paid off in full last Thursday when the board of AMCON approved the transfer of Otedola’s assets and an undisclosed sum of cash.

Obi said, “This is a positive development as the settlement by the biggest debtor to AMCON showed that there are no sacred cows because even a prominent businessman like Otedola has come out to settle.”

Analysts are skeptical of the entire deal saying it was just a ploy by Mr. Otedola andthose for whom he holds fort to borrow more money from banks in order to support their recent acquisition of  Geregu power plant.

 

One Comment

  1. Echi Nwogu

    October 2, 2012 at 9:41 pm

    There must be trees in Otedola’s backyard that grows dollars in the billions. Naija is America Wonder city..