By Henry Umoru
ABUJA—THE Managing Director of Asset Management Corporation of Nigeria, AMCON, Mustapher Chike Obi, yesterday, said the N620 billion released by the Central Bank of Nigeria, CBN for the rescued bank had been paid back.
Chike Obi who spoke when he appeared before the Senate Committee on Banking, Insurance and other financial institutions with members of the Board of Directors, said that those waiting to acquire the rescued banks must wait for one and half years before their hope could be met, adding that it would take between twelve and eighteen months before all the rescued banks can be sold to willing buyers.
He said: “The process would not take less than 12 months or even more than, we can sell next month, but if we do, there would be problem and so, we must follow the process.”
Chike Obi who explained that the delay in the sale of the banks was due to the non appointment of financial advisers, said, “the process would not take less than 12 months. We can sell next month but if we do, there would be problem and so, we must follow the process”.
He told the Committee which was chaired by its Vice Chairman, Senator Isa Mohammed Galaudu, that the banks were now in position to break even, adding: “They will start making profits next year, but I can tell you that they are all doing well, they will start making profits next year. AMCON had stopped buying loans from the banks with effect from November 1, 2011 and henceforth, punitive terms would be applied among other strict measures to buy non performing loans from the banks.”
He told the committee that AMCON had stopped buying loans from the banks with effect from November 1, 2011, noting that henceforth, punitive terms would be applied among other strict measures to buy non performing loans from the banks.
Chike Obi, however, maintained that the decision of AMCON was informed by the need to discourage mismanagement and designed to encourage the rescued banks to perform its statutory role and secure depositors funds, adding that the rescued banks were operating at “dismal negative costs” after losing N2 billion every month and constituting time bomb to the nation’s economy.
According to him, through the intervention of AMCON, they have started doing well, just as he disclosed that the agency was being funded from the federal government statutory N10 billion, recovering of non-performing loans which he put at 70 so far, and sinking fund to which all the banks have contributed as means insurance.