Partners AMPs To Tackle Nigeria’s N4.6trn Debt Burden
By Musa Ibrahim
Since the inception of President Bola Ahmed Tinubu’s administration in May 2023, Nigeria has witnessed a series of economic reforms aimed at revitalising the nation’s financial landscape. One of those central to these reforms is the Asset Management Corporation of Nigeria (AMCON), which has intensified its efforts to stabilise the banking sector and recover non-performing loans.
In the evolving landscape of Nigeria’s financial sector, the corporation has emerged as essential institution in the federal government’s reform agenda. Established in 2010 to stabilize the banking system by acquiring non-performing loans (NPLs), AMCON has been instrumental in restoring confidence in Nigeria’s financial markets.
A New Era of Leadership
On February 22, 2024, President Bola Ahmed Tinubu appointed Mr. Gbenga Alade as the Managing Director (MD)/Chief Executive Officer (CEO) of AMCON, marking a significant shift in the corporation’s leadership. Mr. Alade, a seasoned banker with over three decades of experience, previously served as the MD/CEO of Guaranty Trust Bank (UK) Limited. His extensive background in corporate banking, risk management, and financial restructuring positions him to steer AMCON towards achieving its mandate more effectively.
Achievements in Debt Recovery
The corporation has intensified its efforts in debt recovery and asset management and has recovered approximately N1.96 trillion, with cash recoveries accounting for 43% of this amount. Additionally, AMCON has disposed of proprietary assets worth about N651 billion and made total repayments of N2.929 trillion to the Central Bank of Nigeria (CBN).
Under Mr. Alade’s leadership, the corporation has recorded notable achievements:
- Debt Recovery Milestone: AMCON has recovered over N2.1 trillion since its inception, with nearly N100 billion recovered within the first five months of Mr. Alade’s tenure.
- Profit Growth: The corporation achieved a 212% year-on-year growth in profit, increasing from N34.73 billion in 2022 to N108.43 billion in 2023.
- Enhanced Recovery Strategies: AMCON has engaged international asset tracers to locate assets hidden offshore by recalcitrant debtors, aiming to recover outstanding debts nearing N5 trillion.
Challenges and Collaborative Efforts
Despite these successes, the corporation faces challenges, including over 3,000 court cases that stall debt recovery efforts. The corporation has called on the judiciary to expedite the adjudication of AMCON-related cases within the 60 to 90-day timeframe stipulated by the AMCON Act, emphasising the importance of timely legal processes in achieving its mandate.
Aligning with Federal Reforms
AMCON’s renewed focus aligns with President Tinubu’s broader economic reforms aimed at enhancing transparency, efficiency, and investor confidence in Nigeria’s financial system. The corporation’s commitment to adopting innovative strategies and leveraging technology underscores its role in sanitizing the nation’s financial landscape.
As Nigeria navigates its economic challenges, AMCON’s proactive approach signifies a commitment to financial stability and growth. Through strategic debt recovery and asset management, the corporation continues to play a crucial role in the federal government’s reform agenda, fostering a more resilient and transparent financial sector.
Partners AMPs to Tackle Nigeria’s N4.6trn Debt Burden
In a renewed push to recover over N4.6 trillion in outstanding debts, the Asset Management Corporation of Nigeria (AMCON) has unveiled fresh strategies aimed at intensifying its debt recovery drive – this time with a sharpened focus on reinforcing collaboration with its Asset Management Partners (AMPs).
The move was announced at an interactive session held over the weekend in Abuja, marking the first major engagement between AMCON’s newly appointed executive management team and the AMPs. The event, themed “AMCON Debt Recovery in Renewed Hope Paradigm,” brought together stakeholders to strategise, assess past efforts, and align on a more aggressive and results-driven approach.
Speaking during the forum, Mr. Adeshola Lamidi, AMCON’s Executive Director in charge of Resolution, highlighted the corporation’s evolving outlook, one that leans heavily on practical, innovative, and collaborative tactics in tracking down and recovering debts.
“This session is not just symbolic; it is a recalibration of our joint mission,” Mr. Lamidi said. “We must scale up our collaboration, sharpen our strategies, and uphold ethical standards. The journey ahead is complex, but together, we can accelerate recovery and safeguard Nigeria’s financial system.”
AMCON, established to buy and recover non-performing loans from Nigerian banks, operates with a dual mandate: financial system stabilization and debt resolution. While the first has largely been achieved, the second remains a daunting challenge. According to Mr. Lamidi, the success of this phase lies significantly in the hands of the AMPs, who serve as the Corporation’s operational frontliners across the country.
Mr. Alade echoed these sentiments in his maiden address to the AMPs, urging them to embrace a more robust and coordinated approach. He underscored the scale of the recovery challenge – over 12,000 debt portfolios being managed by less than 500 AMCON personnel operating from just two offices in Lagos and Abuja.
“You must not underestimate your importance to AMCON,” Mr. Alade said. “We are in a race against time and resistance. The volume and complexity of these debts demand a collective, aggressive, and smart recovery effort.”
Mr. Alade also acknowledged the obstacles confronting the AMPs but commended their efforts thus far. He revealed that insights from AMP engagements have already sparked judicial reforms that are reshaping AMCON’s operational terrain. Notably, these include the Federal High Court (AMCON) Proceedings Rules, 2024, and the Insolvency Unit, launched in March 2025.
This Unit, located at the Federal High Court, is designed to expedite AMCON-related legal cases, in line with global best practices on insolvency. It covers processes such as Company Voluntary Arrangements, Receivership, Administration, Winding-Up, and debt restructuring, all aimed at reducing legal bottlenecks in debt recovery.
To expand the reach of these reforms, Mr. Alade disclosed that AMCON is in talks with the Chief Judge of the Federal High Court to establish similar units in Lagos, Port Harcourt, Enugu, Kano, and Kaduna—major jurisdictions housing significant debtors.
These legal advancements – complemented by the Fast-Track Practice Directions (2021), the Supreme Court Rules (2024), and other recent policy innovations – form part of a broader strategy to fast-track enforcement and strengthen AMCON’s statutory powers.
Since its launch in 2016, the AMPs scheme has empowered licensed private firms to recover debts on AMCON’s behalf – especially those below and above N100 million. Beyond recovery, the initiative is also helping build a budding sub-sector in financial services dedicated to debt resolution, potentially creating new jobs and economic opportunities.
Under the scheme, AMPs are authorised to trace debtors, locate both pledged and unpledged assets, improve the value of Eligible Bank Assets (EBAs), and negotiate structured settlements. Their powers are backed by AMCON’s legal framework, giving them authority to act decisively and professionally.
As Nigeria faces economic headwinds and revenue constraints, the urgency to recover AMCON’s huge outstanding debts is more pressing than ever. With fresh leadership at the helm, an invigorated private sector partnership, and new judicial tools in place, AMCON appears ready to confront its toughest phase yet—head-on.
