Asset Management Corp. of Nigeria, set up to acquire non-performing loans of the country’s banking industry, announced it has acquired bad debt worth 3.14 trillion naira ($19.6 billion).
Of the 9,000 loans Amcon, as the company is known, took over since December last year, 200 account for 80 percent of the total value. Amcon has recovered “well over” 15 percent of the bad debts and aims to recoup 70 percent of the loans, Chief Executive Officer Mustapha Chike-Obi said today at a conference in Lagos.
The company is in discussions with defaulting borrowers, the CEO said. “As we restructure the loans, we will approach the banks to see if they will want to take the loans.”
The Central Bank of Nigeria fired chief executives of eight of the country’s 24 lenders two years ago after a lending crisis threatened to derail some of the West African nation’s banks. The central bank deployed 620 billion naira to bail out lenders and set up Amcon to stabilize the industry.
Amcon on Aug. 6 took over Afribank Plc, Bank PHB Plc and Spring Bank Plc after the central bank revoked their licenses.