Friday, April 26, 2019
  • Friday, April 26, 2019

AMCON Moves To Sack Consultants Due To Non-Performance

By Olumidagreat on March 18, 2019
0 7 Views

Nigeria’s ‘bad bank’ may disengage some consultants employed to help in the recovery of its outstanding assets in a bid to weed out non-performing Asset Management Partners (AMPs) and ensure efficiency in its operations, its CEO has said.

Ahmed Kuru, Asset Management Corporation of Nigeria (AMCON) chief executive said any AMPs that cannot cope with the speed and enormous challenges of debt recovery would be weeded out while performing ones will get more job to do.

The ‘bad bank’ chief executive spoke in Abuja at the 2019 edition of the AMCON/AMPs Interactive/Feedback Session.

With AMCON sunset in sight, Kuru said AMCON is more aggressive with its recovery strategy and also expects its partners to equally step up their game because the corporation will no longer accommodate any AMP that is not moving on the same speed. “We know it is not easy the jobs we have assigned to you. Recovery is a difficult job but even at that, a few of you (AMPs) have shown they cannot cope; we may have no choice to disengage such partner. But those that have done well, we will upgrade and even assign more responsibilities to such partners because there is indeed need for speed in this assignment.

“We are convinced that the AMP programme is key to the success of AMCON, and we will give you all the necessary support to make you succeed in this exercise,” the AMCON  chief said.

He also promised that the corporation may assign more accounts to AMPs that have shown aggression and zeal based on the review of the AMP scheme so far.

AMPs, are consortiums of firms with specialist skills in banking, legal, valuation and accounting required to ensure recovery and debt resolution. They were appointed by AMCON after a rigorous selection process to complement its efforts to recover over six trillion naira in outstanding debt.

Kuru said that collaborating with AMPs became necessary because AMCON has a total loan portfolio of over 12,000 loans of various sizes and sectors that are still lingering many years after the corporation was established.

He stated that when this is compared to AMCON’s staff strength, it became obvious that the corporation surely needed a strategic approach to improve coverage, recovery and results.

The AMPs are currently handling over 6,000 accounts within AMCON portfolio. Although in terms of weight, the accounts, which have been outsourced to AMPs constitute only 20 percent or 740 billion naira of the total EBA portfolio of 3.7 trillion naira.

To achieve the mandate as part of the corporation’s renewed strategy to resolve these loans, he said, AMCON in 2016 introduced the AMP scheme to assist the corporation’s recovery activities especially in tracing, identification and location of obligors with the intent to resolve their outstanding indebtedness; tracing, identification and location of assets of obligors (both pledged and unpledged) to enhance the EBA value, and achieve set recovery objectives.

The AMPs he further said were also empowered to enable them get involved in negotiation of settlement & restructuring terms with identified obligors in line with approved guidelines; pursuing & enforcing debt recovery and collection activities geared towards optimization of assigned portfolio to achieve set targets and initiation of legal actions to further the loan recovery mandates in line with approved guidelines, amongst other obligor engagements.




Reliable, usable and educative Financial/business News you can trust. Providing accurate information suitable for leaders and decision-makers in business, government, and international institutions.