Recovering N5trn AMCON Debt, Judiciary Most Critical – Justice Kafarati
The Chief Judge of the Federal High Court, Hon. Justice A.A. Kafarati has again reminded the nation that the success of Asset Management Corporation of Nigeria (AMCON) in the discharge of its recovery mandates would only be enhanced if other safety net players and stakeholders, which include the judiciary effectively play their respective roles.
AMCON is saddled with the arduous task of recovering over N5trn owed by recalcitrant obligors across the country and sectors of the country.
However, the management of AMCON insisted that it would recover the debt especially as the sunset date of the corporation draws closer.
The development has led the management of AMCON led by Ahmed Lawan Kuru, its Managing Director to switch its recovery strategy to more of enforcement.
Justice Kafarati who spoke at the weekend during the opening of the AMCON 2019 annual seminar for Hon. Judges of the Federal High Court, which was organised in collaboration with the National Judicial Institute (NJI) at Rose Ukeje Hall, Federal High Court Complex, Abuja, reiterated the fact that AMCON’s success at recovering the outstanding huge debt would to a large extent depend on the cooperation AMCON received from sister agencies as well as critical stakeholders especially the judiciary.
Kafarati, who was represented at the event by Hon. Justice J.T. 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 banks failures or all 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.
“The success of AMCON therefore in the discharge of its mandates would, to a large extent be enhanced if other safety net players and stakeholders, which include the judiciary would effectively play their respective roles. I am particularly pleased that AMCON has recognised the judiciary as an important stakeholder, which has a critical role to play in the sustenance of financial integrity in Nigeria.”
Justice Kafarati urged Federal High Court to do more to support AMCON recovery drive since the court had the unique constitutional responsibility and exclusive jurisdiction in respect of all AMCON matters.
“We are therefore integral and certainly indispensable to the holistic implementation, realisation and accomplishment of the AMCON mandates as provided in the AMCON enabling Act,” the Justice added.
Earlier in his remarks, the AMCON boss told the judges that the Corporation had always emphasised that the huge portfolio of AMCON debt was not the problem of the corporation as an entity, but a national debt, which if allowed to crystalise, portends serious negative economic and social consequences for the entire nation.
AMCON, he said was constantly under the observation of international monetary institutions and had entertained visits and inquiries from the World Bank and the International Monetary Fund (IMF) with respect to its strategies for resolving the over N5trn or $14billion debt held in AMCON portfolio, which he pointed out was a drain on the federal budget.
