Amcon get presidential directive on debts recovery
You're referring to the recent development where the Asset Management Corporation of Nigeria (AMCON) has received a presidential directive to recover outstanding debts owed to it by defaulting obligors.
Here's a summary of the situation:
Background: AMCON was established in 2010 to take over non-performing loans (NPLs) from Nigerian banks, with the aim of recovering the debts and returning the banks to financial health. Over the years, AMCON has taken over numerous NPLs, but many of these debts remain outstanding.
Presidential Directive: In a recent move, President Muhammadu Buhari has directed AMCON to take all necessary steps to recover the outstanding debts owed to it by defaulting obligors. The directive is seen as a major boost for AMCON's efforts to recover the debts, which are estimated to be in excess of N5 trillion (approximately $13.3 billion).
Consequences: The presidential directive is expected to have significant consequences for defaulting obligors, including:
- Increased pressure to pay: Defaulting obligors will face increased pressure to settle their debts, as AMCON will now be more aggressive in its debt recovery efforts.
- Asset seizures: AMCON may seize assets belonging to defaulting obligors to recover the debts, including properties, vehicles, and other assets.
- Legal action: AMCON may take legal action against defaulting obligors to recover the debts, including filing lawsuits and seeking court orders to seize assets.
Impact on the economy: The successful recovery of these debts is expected to have a positive impact on the Nigerian economy, as it will:
- Reduce the burden on banks: The recovery of these debts will reduce the burden on Nigerian banks, which have been struggling with NPLs for years.
- Boost economic growth: The recovered funds will be injected back into the economy, boosting economic growth and creating jobs.
- Improve credit availability: The recovery of these debts will improve credit availability in the economy, making it easier for businesses and individuals to access loans and credit facilities.
Overall, the presidential directive is a significant development that is expected to have far-reaching consequences for defaulting obligors and the Nigerian economy as a whole.