AMCON debt may hit N6.6 trillion by 2024 if unchecked ― Legal practitioner

15th October 2019

A legal consultant and Senior Partner, Olaniwun Ajayi – LP, Mr Muyiwa Balogun has warned the Asset Management Corporation of Nigeria (AMCON) debt could easily rise to a whopping N6.6trillion by 2024 because AMCON still owes the Central Bank of Nigeria (CBN) N4.5trillion and is also battling with N1.7trillion of Assets Under Litigation (AUL).

He, therefore, called on the Corporation and its Asset Management Partners (AMPs) as well as the Inter-Agency Presidential Committee set up by the Federal Government to leverage the 2019 Amended AMCON Act in recovering the over N5trillion outstanding AMCON debt before sunset.

The Act has been signed into law by President Muhammadu Buhari.

Balogun who made a case in support of the 2019 Amendments while addressing external solicitors and AMPs of AMCON in Abuja further painted a gloomy picture of what could further befall the already challenged Nigerian economy if the debts were not recovered in good time before the sunset period.

Given the fact that the debt will eventually become the burden of the federal government and by extension taxpayers, he argued that there is the need for speed in recovery just as all hands should be on deck to ensure that AMCON recovers the debt as mandated by the new amendments.

He said it was immoral to allow the obligors go without punishment especially since both the Holy Bible and the Quran, which incidentally are the dominant religions in the country abhor people who borrow without the intention to pay back.

According to Balogun, the Bible in the book of Psalm 37:21 said: “The wicked borrow and do not repay.” In Proverbs 22:27, the Bible also said: “If you have no money to pay, even your bed will be taken from under you.

 “The Quran on the other hand in Surat Al-Baqarah: 280 – 282 said: Whoever borrows money and he intends not to repay it off is a thief.”

Backed by these, he stated that there are no legitimate means adopted by AMCON and its agents to recover the debt as empowered by the Amended AMCON Act that can be termed as draconian.