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Asset Management Corporation of Nigeria’s liabilities hit N5.7tn in 2022

by Radarr Africa
written by Radarr Africa

Asset Management Corporation of Nigeria’s liabilities stood at N5.72tn as of the end of the first half of 2022.

The Financial Markets Department of the Central Bank of Nigeria disclosed this in its ‘Half-year activity report 2022’ released on Thursday.

It stated that, “The carrying value of AMCON’s liabilities stood at N5.72tn at end-June 2022. Of this amount, AMCON notes, with an outstanding balance of N3.86tn, and the loan (Debenture) of N500bn accounted for 76.27 per cent of the liabilities. The notes are due to mature on December 27, 2023 and the N500bn loan is due for redemption on December 30, 2022.”

Recently, AMCON said in a statement that the Senate appealed for more support on its recovery drive It stated that the Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani, reiterated the willingness of the National Assembly to continually support the debt recovery efforts of Asset Management Corporation of Nigeria.

According to the statement, he said the support had become critical because AMCON remained a strategic national institution that played important and pivotal role in helping to stabilize the economy.

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“AMCON is saddled with the tough assignment of recovering nearly N5tn owed the country by debtors who for years now hide under all manners of technicalities to tie AMCON up in different courts to stall repayment,” it stated.

Sani who was represented by Senator Olubunmi Adetumbi however commended the management of AMCON for remaining resolute.

While appealing to other agencies of the Federal Government and all stakeholders to support the recovery drive of AMCON, Sani also appreciated the contribution of the Inter-Agency Committee set up by the Federal Government sometime in 2019 to ensure that debtors are held accountable.

The work of the committee had brought many obligors to the negotiation table, it added.

It stated, “The committee is made up of heads and representatives of agencies including the Independent Corrupt Practices and Other Related Offences Commission, the Economic and Financial Crimes Commission, and the Nigerian Financial Intelligence Unit.

“Others are heads of the Central Bank of Nigeria, the Nigeria Deposit Insurance Corporation, the Federal Ministry of Justice and AMCON. They were expected to review the status of the huge debts owed to AMCON, deliberate on practical, legal and other strategies for the recovery of the outstanding debts.”

SOURCE: Punch news

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Banking, Finance & InvestmentBusinessNigeriaWestern Africa

Polaris Bank names a new board and management

by Radarr Africa
written by Radarr Africa

Polaris Bank has named a new board and management a day after the Central Bank of Nigeria announced the sale of the lender to Strategic Capital Investment Limited.

The new board will be led by the existing chairman M K Ahmad, who will be joined on the board by six non-executive directors and three executive directors, it said in a statement Friday.

AdekunIe Sonola, a former executive director at Union Bank, is the managing director and chief executive officer of the bank.

The Central Bank of Nigeria on Friday announced the sale of Polaris Bank to SCIL, four years after the government took over the distressed Skye Bank, renamed it before injecting over N1 trillion of public funds to recapitalise the bank.

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Strategic Capital Investment Limited emerged the preferred bidder for the lender, the CBN said in a statement late Thursday. The sale decision was jointly taken with the Asset Management Corporation of Nigeria (AMCON), the government’s bad debt buyer, which took over Skye Bank after the CBN withdrew its licence in 2018 before setting up Polaris as a bridge bank.

The new owner, SCIL, paid N50 billion and has agreed to refund N1.3 trillion injected into the bank, CBN said.

Members of the new board are:

• MK Ahmad (Chairman)

• Abubakar Danlami Suleiman (Non-Executive Director)

Source: Premium Times

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Banking, Finance & InvestmentNigeriaWestern Africa

House of Reps initiates suspension of sales towards Polaris bank

by Radarr Africa
written by Radarr Africa

The House of Reps has ordered the Central Bank of Nigeria (CBN) to suspend the sale of Polaris Bank Plc. 

The House gave the directive on Wednesday during plenary after adopting a motion of urgent public importance by Rep. Henry Nwauba (APGA-Imo). 

According to the house, the suspension will subsist until the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC), and the Asset Management Corporation of Nigeria (AMCON) have concluded all processes for the open, transparent, and competitive bid process. 

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As resolved by the House, the entire process should be done in line with best practices and procedures for divestment. 

The House subsequently set up an Ad hoc Committee, which will review the total outlay by the Federal Government of Nigeria in Polaris Bank and account for the entire financial input in the bank within 20 days.  

The house directed the committee to ensure that funds belonging to the public in the custody of the bank were properly documented and can be accounted for. According to the House, CBN, NDIC and AMCON will handle the process of determining if the terms and conditions of the sale will ensure a positive return on public funds that have been committed to the bank. 

Source: News 24

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Union raises the alarm over plot to take over Arik, Aero

by Radarr Africa
written by Radarr Africa

The National Union of Air Transport Employees and the Air Transport Services Senior Staff Association of Nigeria have raised the alarm over an alleged plot by some groups to take over Aero Contractors and Arik.

The Asset Management Corporation of Nigeria, the nation’s bad debt manager created by the Federal Government, owns majority shares in both Arik Air and Aero Contractors.

The General Secretary, NUATE, Ocheme Aba; and Deputy General Secretary, ATSSSAN, Francis Akinjole, said the unions had accused the management of Aero Contractors of planning to reduce 40 per cent of its workforce.

The union leaders also alleged that the management of Aero had refused to address the company’s failure to complete the redundancy payment for those it asked to stay at home since 2016.

As a result, the unions in a joint statement appealed to the National Assembly, ministers of Aviation, and Labor & Employment, to initiate an intervention that could save both Aero and Arik.

In a joint statement, NUATE and ATSSSAN, said, “We would have been silent on Arik Air for now, but for the fact that the House of 5A’s lease arrangement that was chased out of Aero has found its way into Arik Air. Disturbingly, there is evidence of a case of collusion between the management of Aero and Arik Air. As we understand, the new lease arrangement was to come into operation last Friday but got shelved.

“Though we are yet to be furnished with Arik’s share of the spoils under this arranged contraption called a lease, we can say authoritatively that, like in Aero, the House of 5A’s aircraft have been gifted Arik’s juicy routes of Lagos/Abuja/Lagos, Abuja/Port Harcourt/Abuja, and Abuja/Kano/Abuja based on the released schedule.”

It added, “We consider this to be mischief beyond bounds, and a joke taken too far. Surely, we will not co-habit with this toxic agenda. Therefore, we shall immediately direct all Arik workers to withdraw all services from this aircraft if, and when, it comes to our knowledge that indeed the same level of toxicity as in the case of Aero also applies in this case in Arik.”

The aviation union, therefore, asked the Minister of Aviation, Hadi Sirika; the National Assembly and other relevant stakeholders to initiative probes into the circumstances surrounding the rumored selling of one or both of the airlines to “the promoters of 5A’s for cheap after the airlines must have been forced to the ground by an artificially created financial crumbling.”

“We also call for a strong and deeply reflective interface among the Ministry of Aviation, AMCON, and the legacy shareholders of Aero Contractors and Arik Air for the purpose of knocking out a deal that could truly rejuvenate the airlines,” the statement added.

The management of Aero Contractors has, however, responded to the claims of the unions tagging them as “wild and unfounded.”

In a statement released by the management of Aero Contractors, they described the actions of the unions as “pure mischief.”

The statement read in part, “On the House of 5A’s, every partnership was done with the aim of improving the revenues of the airline, particularly in relation to our unserviceable equipment and ensuring standard customer service. The question is what was our revenue before, during and after the exit of the House of 5As? They should please respond.

“We are conscious of the challenges we are facing and have been prudent with our expenses, and doing our best to take care of staff welfare. We urge the staff and unions to desist from this attitude and support the company to overcome its challenges.”

Source: The Punch

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