Managing Director/Chief Executive, Asset Management Company of Nigeria (AMCON), Mr. Mustapha Chike-Obi, disclosed yesterday that its total assets comprising loans, investments, debts among others had reached about N5 trillion. That worth makes it the largest financial institution in the country.
Speaking in Abuja at the maiden AMCON Road Show Programme themed: “AMCON and its Role in Sanitising the Financial Industry”, Chike-Obi also said that the company would sell the 3 nationalised banks “as soon as it is practicable” while considering due process, returns on investment and ensuring that there is no disruption in the financial system.
The AMCON boss said the company was currently in the process of “evaluating what they are worth, what they look like and the best options for AMCOM. “After that then we will get into the process of selling them to qualified and interested parties.”
He said 44 expressions of interest (EoI) had been received while 11 had been short-listed.
He added that the process of picking an advisor for the sale of the banks should be completed within the next 46 weeks. It came as the AMCON Chief Executive further fore-closed expectations that there might be some form of guarantee for the nation’s troubled stock market.
He said such suggestions were “not practical” given certain complexities in the market.
“It’s a very good idea in theory but in practical, it is difficult,” he said, adding that the issues in the capital market were that of liquidity and size as it currently trades only about N4 billion daily.
Meanwhile, Chike Obi said the company hoped to recover all the debts owed it in one and a half to two years from now.
He said some of the loans had been executed in connivance between banks and borrowers leading to tainted assets, a development that has forced AMCON to demand that banks state which loans are insider related and those that are tainted.
He explained that AMCON had extensive legal backing to go after assets abroad whether the asset is captured in the loan agreement or not and will declare some borrowers insolvent before going after them in the event that borrowers are unable to pay the loans.
The company is currently finalising plans to employ lawyers and recovery agents to pursue its debtors across the country.
Justifying its intervention, he disclosed that the three nationalised banks were losing N2 billion to N3 billion monthly before their take over adding that “they are running as profitable institutions. The banking industry sinking fund of 30 per cent basis point will fund the losses of selling the distressed banks.”
AMCON as the largest user of capital market Chike Obi said cares about what happens at the market and will support the capital market in any way it can. This he explained is because AMCON is the largest domestic issuer of bonds, with assets of about N5trillion thus making it the largest financial institution in the country.
The corporation he said is expected to reach its maximum size sometime this year and decline as time goes on because of its 10 year life span, as a result the corporation he added “will not engage in wastages we have a very strong 10 member board working closely with the CBN and ministry of finance.”
Culled from thisdayonline