Ahmed Kuru

Managing Director/CEO

AMCON

The Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani, has reiterated the willingness of the National Assembly to continually support the debt recovery efforts of Asset Management Corporation of Nigeria (AMCON).

He said the support has become critical because AMCON remains a strategic national institution that plays important, and pivotal role in helping to stabilise the economy.

AMCON is saddled with the tough assignment of recovering nearly N5 trillion 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. Sani who was represented by Senator Olubunmi Adetumbi however commended the management of AMCON for remaining resolute.

While appealing to sister 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 has brought many obligors to the negotiation table. The Inter-agency Committee is chaired by Prof. Bolaji Owasanoye (SAN) who is also the Chairman of Independent Corrupt Practices and Other Related Offences Commission (ICPC).

The committee is made up of heads and representatives of agencies including the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU).

Others are heads of the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC), 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.

Recall that it was also in a bid to tighten the noose on the obligors that in November 2021, President Muhammadu Buhari signed into law the Asset Management Corporation of Nigeria (Amendment) Act, amending the AMCON Act No.4, 2010.

The Act provides for the extension of the tenor of the Resolution Cost Fund (RCF) and grants access to the Special Tribunal established by the Banks and other Financial Institutions Act 2020, which confers on AMCON the power to among others… “to take possession, manage, foreclose or sell, transfer, assign or otherwise deal with the asset or property used as security for Eligible Bank Assets (EBAs), and related matters,’’ just to mention a few.

Sani spoke at one-day retreat, which held recently at the Zuma Rock Resort in Niger State. The retreat was themed: “Asset Recovery as a Tool for Enhanced Growth and Stability of the Banking Sector Sustaining the Impact and Bridging the Challenges of AMCON.”

The Nigerian private sector remained in growth territory at the end of the second quarter, although recent challenges around cash shortages led to weaker new order growth and a renewed decline in output.

As a result, business conditions improved at the weakest rate for almost a-year-and-a-half. Companies responded by raising their staffing levels, purchases and stocks of inputs at softer rates in June.

On the price front, steep cost pressures persisted with overall input price inflation quickening to a four-month high.

The headline figure derived from the survey is the Purchasing Managers’ Index (PMI). Readings above 50.0 signal an improvement in business conditions on the previous month, while readings below 50.0 show a deterioration.

At 50.9 in June, down from 53.9 in May, the headline PMI signalled a twenty-fourth successive monthly improvement in business conditions in Nigeria’s private sector. That said, the latest result was indicative of the weakest improvement for 17 months.

Central to the moderation was a renewed contraction in output which fell for the first time in 19 months. Although marginal overall, the latest fall contrasted with sharp expansions in recent months. Firms overwhelmingly blamed weaker inflows of new work, but there were also mentions of cash shortages.

Meanwhile, new orders rose for the twenty-fourth month in a row. The rate of growth was marginal and eased to the softest in this sequence, however, as elevated costs deterred some clients from placing orders.

Turning to prices, overall input price inflation quickened from May, and was the fourth- steepest in the series history. Firms reported higher purchase costs (particularly for fuel and raw materials) and rising staff costs.

Subsequently, and in line with weaker inflows of new work, purchasing activity rose at the weakest pace since January 2021. Stocks of purchases continued to rise sharply however, and at a rate that was in line with the long-run series average.

Staffing levels rose for the seventeenth month in succession during June amid efforts to boost output. That said, the rate of growth was modest with some firms engaging in restructuring efforts.

Modest expansions in new business, paired with another uptick in headcounts led to a twenty-fifth successive reduction in backlogs. Shortages of some key parts resulted in the weakest decline in backlogs for 17 months, however.

Finally, sentiment regarding output in the year ahead remained firmly in positive territory in June. Although, there were some signs that soaring inflation weighed slightly on hopes with the degree of optimism moderating from May.

L-R: Mr. Alao Olusegun Olawushebikan – Delta State NYSC State Coordinator; Bede Okoye, Unity Bank Zonal Service Manager, Asaba Region; Lucky Egbelelo – 2nd Prize Winner of Corpreuneurship Pitch Delta State and Mr. Abu Igemohia Mohammed – RM, Edo/Delta region during a check presentation to winners of Corpreneurship Challenge recently.

Nigerian lender, Unity Bank Plc has doled out a N10 million business grant to 30 corps members who emerged the winners of the eighth edition of its flagship Entrepreneurship Development Initiative, known as Corpreneurship Challenge.

The winners emerged after a business pitch that took place across 10 states – Rivers, Delta, Sokoto, Edo, Abuja, Akwa-Ibom, Osun, Kano, Bayelsa and Enugu recently.

At the Rivers State NYSC Orientation camp at Nonwa Gbam Tai, the winners included Moses Obianuju Gloria, a fashion entrepreneur whose business plan won N500, 000 grant for a fabric production company; Emmanuel Godwin Adole, a budding commercial rice farmer who won N300, 000 grant; and Okotie Racheal Dokubere who took home N200, 000 grant to support her fashion production outfit specialising in office and outdoor outfits for women.

In Delta State, where the Corpreneurship Challenge also debuted in this edition, Adegoke Blessing Hezekiah, a fish farmer emerged as the overall winner to claim the N500,000 grant, while Egbelelo Lucky Etanami, a fashion entrepreneur and Tob Tamaraumien Ruth, emerged the first and second runner up to claim N300,000 and N200,000 prizes respectively.

Other winners from other states were also drawn from contestants whose business plans included fish production, poultry farming, fashion, soap and cake making, printing, piggery and beverage making.

To emerge as the winners, their business plans were assessed on originality, marketability, future employability potential of the product and knowledge of the business.

Speaking during the finale in Delta State, the Group Head, Retail, E-Business and SME Banking, Unity Bank Plc, Mr. Olufunwa Akinmade, said the competition has gradually become Nigeria’s premium business plan contest for emerging entrepreneurs.

“When we started the initiative in 2019, we had set out to inspire a new generation of entrepreneurs in Nigeria. So far, the initiative has resonated with the target audience and there is no gainsaying the fact, that this will continue to have a huge impact on job creation across the country.

Represented by Mr. Abu Igemohia Mohammed, the Regional Manager, Edo/Delta Region, Akinmade reiterated, “As we have maintained, the grants are not a loan and we want the money to be directed towards the profitable ventures which have been selected. We continue to encourage the winners to continue to learn the rudimentary lessons necessary to build a successful business. We emphasize that the budding entrepreneurs who take part in this initiative constantly think about the challenges they will face and put the same energy they all have displayed in preparing for this contest in their businesses as they face their post-service year ahead.”

He said the Bank will sustain the programme in order to achieve a record impact on entrepreneurship support and job creation.

The Corpreneurship Challenge, which has earned the Bank national recognition for its impact on youth empowerment and job creation, has continued to elicit growing interest among the corps members, attracting over 2000 applicants and participation in every edition.

In partnership with the NYSC Skill Acquisition and Entrepreneurship Development, SAED, the initiative prominently features a business pitch presentation that provides the participants with the opportunity to present their business plans and stand a chance to win up to N500, 000 cash in the business grant.

So far, Unity Bank has invested over N100 million in the initiative which has now produced 88 winners since it was launched.

Ahmed Kuru

Managing Director/CEO

AMCON

The Federal House of Representatives Committee Chairman on Banking and Currency, Hon. Victor Nwokolo has disclosed that the National Assembly would as a matter of urgency summon the leadership of the various key committees that are overseeing the different agencies of the federal government to investigate why the Inter-agency Committee on the recovery of the huge outstanding debt owed the Asset Management Corporation of Nigeria (AMCON) are not working as directed by the Presidency.

Recall that in September of 2019, the Vice President of Nigeria Prof. Yomi Osinbajo inaugurated an Inter-agency Committee to speedily resolve the challenges in recovering over N5 trillion AMCON debts.

Osinbajo, who inaugurated the committee at the Presidential Villa, Abuja, had tasked its members to deploy their expertise in the assignment to ensure that AMCON meets its mandate within reasonable timeline.

Members of the committee include heads and representatives of agencies such as the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC), and the Nigerian Financial Intelligence Unit (NFIU). Others are heads of the Central Bank of Nigeria (CBN), the Nigeria Deposit Insurance Corporation (NDIC), 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. The Committee is chaired by Prof. Bolaji Owasanoye, who is also the ICPC Chairman.

Nwokolo who spoke at this year’s edition of the House of Representatives Committee on Banking, and Currency retreat with the Management of AMCON among other stakeholders in Lagos said it was sad that agencies of the federal government of Nigeria work at cross-purposes rather than collaborating to ensure that they support the federal government, and the economic recovery of Nigeria after coronavirus (COVID-19) pandemic had dealt a deadly blow on the economy of Nigeria and the global community. The retreat was themed, “Asset Recovery as a tool for Enhanced growth, and Stability of the Banking sectors sustaining the Impact and Bridging the challenges of AMCON.”

He said, “We cannot continue like this because we are answerable to the people of Nigeria and our constituencies as lawmakers. They will hold us accountable if we fail to take decisive actions that would help AMCON to recover these huge outstanding debts.”

Nwokolo insisted that it does not sound pleasant to the ear that the person of the Vice President Prof Yomi Osinbajo had set up a committee that was supposed to force sister agencies of the government to collaborate and mount pressure on AMCON obligors within the ambit of the law to ensure that these debts are resolved.

He said in a sane clime, ministries, departments and agencies of the government are supposed to work in sync to ensure that nobody shortchanges the federal government, but from reports we get from AMCON, it is obvious that they are facing frustrations from not just the obligors but from the judiciary, as well as ministries, departments and agencies of the federal government. There is no reason why that should happen in a decent country.

For that reason, Nwokolo said the national assembly would in no distant time organize another retreat which would involve about six critical stakeholders to discuss in great details the strategy that would be adopted to ensure that Nigeria recovers its money, which some heartless obligors owe the country, and for which they are hiding under all manners of trickery to evade repayment.

He however commended the leadership of AMCON led by Mr Ahmed Kuru as Managing Director/Chief Executive Officer for their resolve to persistently chasing the debtors, some of whom feel they are bigger than the country.

He however restated the fact that given that the AMCON Act has been amended and already signed into law by President Buhari, the national assembly will continue to strengthen the laws of the country on enforcement.

He said enforcement has become critical given the tactics of the debtors, which has constrained AMCON from achieving optimum results especially since public funds were used to buy these loans that helped prevent systemic collapse of the banking sector in Nigeria at the time AMCON was created in 2010.

In his own submission, AMCON Managing Director/CEO said the Corporation has recovered about N1.4trn, which comprises of cash N681bn; Property Forfeiture N279bn; Share Forfeiture N140bn; and other strategic assets N208bn.

Similarly, a total cash recovery of over N116.9bn has been recovered on Polaris EBAs from date of acquisition to date. The AMCON MD/CEO who was represented by Mr Matthew Coker who is AMCON’s Group Head, Asset Management Directorate told the lawmakers that despite the Special Powers as provided by the Act, AMCON still struggle with the implementation due to our judicial system.

He said, “Honorable members, the Corporation’s recovery processes at this point majorly depends on the Judiciary i.e., Obtaining Possessory Orders or Orders for sale. The slow pace of our court processes and sometimes conflicting orders by the Courts, especially at the Federal High Court (FHC), which is our Court of first instance frustrates recovery process. There are delays in obtaining dates in the Court to hear AMCON matters.

“Deposit of judgement sum as provided for in the act is not enforced by the Courts, some of the obligors are still active contractors of the government. They carry out businesses with government with debtor company names or other pseudo names and the BOFIA Act that provided for a Special Tribunal on recovery and enforcements would have hastened the adjudication of our matters in Court if the Judiciary had constituted a task force specifically in that regard,” he concluded.

Unity Bank’s flagship Entrepreneurial Development Initiative, Corpreneurship Challenge, is set to return for the 8th edition across 10 locations in Nigeria, including a debut in Delta and Rivers States.

The Retail lender kick-started the Corpreneurship Challenge scheme in 2019, with a launch in Lagos and in three other states, which included Edo, Ogun, and Abuja, but with the increasing traction of the initiative among corps entrepreneurs, the Bank has now expanded the programme to 10 states across the federation.

The first expanded edition covered Lagos, Ogun, Abuja, Edo, Katsina, Enugu, Bayelsa, Akwa Ibom, Sokoto, Kano and Kaduna. This edition will hold for the first time in Rivers and Delta as well as making a return to Sokoto, Edo, Abuja, Akwa-Ibom, Osun, Kano, Bayelsa and Enugu.

The Corpreneurship Challenge, which has earned the Bank a national recognition for its impact on youth empowerment and job creation, has continued to elicit growing interest among the corps members, attracting over 2000 applicants and participation in every edition.

In partnership with the NYSC Skill Acquisition and Entrepreneurship Development, SAED, the initiative prominently features a business pitch presentation that provides the participants with the opportunity to present their business plans and stand a chance to win up to N500, 000 cash in the business grant.

Previous editions saw participants pitching business plans from several sectors including software solutions, fashion, fish production, poultry farming, bee farming, retail chains, and piggery to beverages which were assessed based on originality, marketability, and future employability potential of the product and knowledge of the business.

So far, Unity Bank has invested over N100 million in the initiative which has now produced 58 winners since it was launched.