CJ FHC, Justice A.A. Kafarati Urges Judiciary To Assist In AMCON’s Recovery Of N5trillion Debt

The Chief Judge of the Federal High Court, Justice A.A. Kafarati
has impressed on the judiciary the need to step up efforts aimed at
aiding the recovery of the over N5trillion Asset Management
Corporation of Nigeria (AMCON)’s debts.

AMCON is saddled with the task of recovering over N5trillion
owed by recalcitrant obligors as the sunset date of the corporation
draws closer. The development has led the management led by Ahmed
Lawan Kuru, Managing Director/CEO to switch its recovery strategy
to more of enforcement.

Justice Kafarati who spoke at the weekend during the opening of
the AMCON 2019 annual seminar for Judges of the Federal High Court,
which was organised in collaboration with the National Judicial
Institute (NJI) at Rose Ukeje Hall, Federal High Court Complex,
Abuja reiterated the fact that AMCON’s success at recovering the
outstanding huge debt would to a large extent depend on the
cooperation AMCON receives from sister agencies as well as critical
stakeholders especially the judiciary since most of the cases of
AMCON and its obligors end up in court.

Kafarati who was represented at the event by Justice J.T. Tsoho,
said, “AMCON is a paramount feature of the financial system
stability in Nigeria. AMCON sets out to accomplish this critical
objective of stabilising the macro economy by off-loading toxic
assets from the balance sheet of banks. It must be made clear that
AMCON cannot be the only panacea for resolving all banks failures
or all other issues in the financial system, as it is only one of
the critical partners or components of the financial safety
arrangement responsible for the promotion of financial system
stability.

“The success of AMCON therefore in the discharge of its mandates
would, to a large extent be enhanced if other safety net players
and stakeholders, which include the judiciary would effectively
play their respective roles. I am particularly pleased that AMCON
has recognised the judiciary as an important stakeholder, which has
a critical role to play in the sustenance of financial integrity in
Nigeria.”

Justice Kafarati reminded the participants that the federal high
court should actually do more to support AMCON recovery drive since
the court has the unique constitutional responsibility and
exclusive jurisdiction in respect of all AMCON matters.

Earlier in his remarks, the AMCON boss told the judges that the
corporation had always emphasised that the huge portfolio of AMCON
debt is not its problem as an entity, but a national debt, which if
allowed to crystallise will portend serious negative economic and
social consequences for the entire nation.

AMCON he said is constantly under the observation of
international monetary institutions and have entertained visits and
inquiries from the World Bank and the International Monetary Fund
(IMF) with respect to our strategies for resolving the over
N5trillion or $14billion USD debt held in AMCON portfolio, which of
course AMCON would not want to be a drain on the federal
budget.

According to Kuru, “In April this year, the IMF released its
Country Report No. 19/92 where it recognized the Central Bank of
Nigeria (CBN) as AMCON’s main creditor and that the AMCON debt
creates additional contingent liabilities for the federal
government. This underscores the need for a serious concerted
effort by all relevant stakeholders, especially the judiciary
towards achieving the most effective loan workout option.”

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