The Asset Management Corporation of Nigeria (AMCON), is collaborating with stakeholders on ways of disposing its toxic assets, the Managing Director/CEO, Mr. Ahmed Kuru has said.
Kuru, who was represented by Aminu Ismail, Executive Director in charge of Operations, AMCON at a two-day Asset Sales Strategy Retreat, which ended in Abuja yesterday, said part of the agenda was to expand the scope of its sales strategy by engaging professionals from the real estate sector, including legal experts and regulatory stakeholders, as well as cross-fertilise ideas on better measures to follow to enable AMCON dispose its huge assets at good value and in good time in line with AMCON’s mandate.
“As you may be aware, one of the key objectives of AMCON is—to obtain the best achievable financial returns for all assets acquired. Following the acquisition of Eligible Bank Assets (EBAs), AMCON is now saddled with the responsibility for recovering the bad loans either through cash repayments or asset forfeitures/foreclosures.
He said the bulk of recoveries which have been recorded at AMCON are in form of asset, saying that considering the fact that AMCON’s obligations to the Central Bank Nigeria (CBN) is in the form of cash repayment, AMCON therefore has the responsibility of converting the assets into cash in order to meet the repayment obligations.
Kuru said as at December 2017, AMCON has recoveredN731billion (excluding claw backs). Out of this amount, properties accounted for approximately 35 per cent. On the flip side, he stated that the Corporation noticed an increasing decline in its ability to dispose of assets at competitive market rates due to the several factors including inflation among other market dynamics.
With such indices, Kuru again said: “At AMCON, we have realized that we cannot continue to do business as usual – it has therefore become imperative for us to seek more innovative ways of converting our huge portfolio of assets into liquid cash as quickly as possible. We have convened some of the most resourceful real estate professionals and legal experts to this forum to help brainstorm through the issues and proffer practical solutions to the challenges confronting AMCON. We also invited critical regulatory stakeholders to contribute to the discourse toward finding workable solutions.”
Also speaking, Executive Director in charge of Asset Management at AMCON, Dr. Eberechukwu Uneze, who also chaired the plenary session stated that there was dire need to have professionals, experts and agencies collaborate with AMCON because it has a stockpile of assets, which it is finding difficult to dispose in the regular open market. These assets, he said, cut across critical sectors of the economy such as real estate, energy, transportation and aviation, maritime, agriculture and manufacturing just to mention a few, all of which he said must be disposed as quickly as possible against all odds the agency is challenged with.
The retreat featured high-powered presentations and contributions including Appraisal of Methods of Valuation Considering Achievable Market Value by Victor Adekunle Alonge, Board member, and Chairman, Professional Practice Committee (PPC), Estate Surveyors & Valuers Registration Board of Nigeria; Strategies for Conducting Successful Marketing Campaign and Attracting Buyers for AMCON Assets by Mr. Aigbekan Osas; Value Optimisation Strategies for AMCON Assets, which was jointly presented by Obi Mkparu, a real estate investment consultant and Akingbade Tunji of Akingbade & Associates.
Other presentations include Creating a market for AMCON Assets, delivered by Chinwe Ajene-Sagna of Strategic Reality; Legal Documentation Impediments on the Sale of AMCON Assets by Albert Nwanozie; Challenges Experienced in the Sale of AMCON Assets by Olamipo Macaulay. There were also contributions from Mr. Chuka Agbo SAN, Managing Partner, Lexavier Partners; High Chief Isaac Folorunsho; Lanre Shittu, a Deputy Director with the Central Bank of Nigeria; Mulikat Balogun, Registrar of Titles, Lagos State and Ibrahim Bamidele, Director of Land Services, Lagos State; Aliyu Abubakar Kalgo, AMCON Head of Asset Sales and a host of others.
From The Nation