Chief Judge of the Federal High Court, Justice Abdul Kafarati has lamented that over N5trillion is owed the Asset Management Corporation of Nigeria, AMCON, and called on the judiciary to step up efforts aimed at aiding the recovery of the debts.
AMCON is saddled with the task of recovering over N5trillion owed by recalcitrant obligors. The development has led the management led by Ahmed Lawan Kuru, Managing Director/CEO, to change its recovery strategy to more of enforcement.
Justice Kafarati, who stated this at the weekend during the opening ceremony of AMCON 2019 Annual Seminar for Judges of the Federal High Court which was organised in collaboration with the National Judicial Institute, NJI, at the Federal High Court Complex, Abuja.
He reiterated the fact that AMCON’s success at recovering the outstanding huge debt would to a large extent depend on the cooperation it receives from sister agencies, as well as critical stakeholders especially the judiciary since most of its cases end up in court.
Kafarati, who was represented by Justice John Tsoho said “AMCON is a paramount feature of the financial system stability in Nigeria. AMCON sets out to accomplish this critical objective of stabilising the macro economy by off-loading toxic assets from the balance sheet of banks. It must be made clear that AMCON cannot be the only panacea for resolving all bank failures or other issues in the financial system, as it is only one of the critical partners or components of the financial safety arrangement responsible for the promotion of financial system stability.
Justice Kafarati reminded the participants that the Federal High Court should actually do more to support AMCON’s recovery drive since it has the unique constitutional responsibility and exclusive jurisdiction in respect of all AMCON matters.
AMCON boss described the company’s huge debt portfolio as a national malaise which portends serious negative economic and social consequences for the entire nation.
He said AMCON is constantly under the observation of international monetary institutions and have entertained visits and inquiries from the World Bank and the International Monetary Fund, IMF, with respect to its strategies for resolving the over N5 trillion or $14 billion debt held in its portfolio.