The Asset Management Corporation of Nigeria has unveiled a renewed strategy to intensify efforts towards recovering more than N4 tn in outstanding debts owed by obligors across the country.

In a statement made available to our correspondent by the Head, Corporate Communications Department, AMCON, Jude Nwauzor, on Monday, the strategy will see AMCON deepen its collaboration with the Asset Management Partners, a scheme established in 2016 to aid in the recovery of non-performing loans in the banking sector.

The Executive Director in charge of Resolution at AMCON, Adeshola Lamidi, stressed the importance of strengthening the partnership between AMCON and the AMPs to achieve improved results.

“Our success depends greatly on you, our Asset Management Partners, through your dedication, innovation and professionalism. We must deepen collaboration, uphold ethical standards, and embrace strategic thinking in our recovery efforts,” Lamidi said.

He further explained that AMCON’s mandate includes stabilising the financial system by acquiring non-performing loans from banks to prevent systemic failures, as well as recovering those loans to maintain the health of the banking sector. While the Corporation has made significant progress over the years, Lamidi admitted there was still room for improvement, particularly in light of the large outstanding debt portfolio.

Also, AMCON’s Managing Director and Chief Executive Officer, Gbenga Alade, emphasised the role the AMPs play in the recovery process.

“You are indeed very critical to our success, as our workforce of less than 500 personnel with offices in Lagos and Abuja may not effectively cope with the over 12,000 portfolios in our inventory.

Accordingly, the imperative of deepening our mutual synergy is readily apparent,” Alade said.

He noted that with the AMCON Act’s looming sunset date and the challenges posed by some recalcitrant debtors, the Corporation expects more aggressive debt recovery efforts from its partners.

“With an inevitable sunset date and recalcitrant debtors, a high premium is placed on debt recovery efforts to ensure that the Corporation achieves its statutory mandate,” he said.

The renewed efforts will also leverage new legal frameworks, including the recently established Insolvency Unit of the Federal High Court, which was set up on March 24, pursuant to the AMCON Act, 2010 (as amended), and the Companies and Allied Matters Act, 2020. This unit is designed to provide fast-track services on insolvency issues, such as voluntary arrangements, administration, receivership, and winding-up processes.

Alade further explained that AMCON is working with the Federal High Court to establish similar Insolvency Units across other key judicial divisions, including Lagos, Port Harcourt, Enugu, Kano, and Kaduna, to improve debt recovery efficiency nationwide.

The AMPs scheme was originally designed to categorise debts into two main groups, which include those below N100m and those above N100m.

AMCON affirmed its commitment to improving debt recovery outcomes through strengthened partnerships, enhanced legal frameworks, and practical strategies aimed at fulfilling its statutory mandate and promoting financial sector stability.

The PUNCH reported that the Asset Management Corporation of Nigeria said it has recovered over ₦2.1 tn in debts despite its challenges since its inception.