ADVERTISEMENT
The Sun Nigeria
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun
No Result
View All Result
The Sun Nigeria
No Result
View All Result
Home Editorial

AMCON and recalcitrant debtors

7th February 2016
in Editorial
0
0
SHARES
117
VIEWS
Share on FacebookShare on Twitter

The huge challenge of debt recovery was recently underscored by Mr. Ahmed Kuru, Chief Executive Officer of the Assets Management Corporation of Nigeria (AMCON), when he complained that many of the corporation’s debtors are living large and flying private jets all over the place. The agency has already started publishing the names of some of the 220 firms and their directors whose total outstanding debts have been put at N1.146 trillion.

The aim, as in all such cases, is to shame the debtors by having their identities in the public domain and by so doing, make them pay up to avoid further embarrassment. It is a strategy that has not been confirmed to have yielded much positive results in the past, and we doubt that it would be different this time.
What we believe will work better is to properly secure loan agreements and enforce the terms when there is a breach.  Before any loan contract is sealed, there is usually a loan agreement, with some collateral as security. In the present AMCON case, how were the loans secured? Was it that in its desperate bid to save some of the debtor financial institutions and especially our banks, the loans were not secured? That would be very tough luck, indeed.
AMCON must, in deciding on the ‘publish and shame’ option, be careful not to risk libel and getting sucked into protracted court cases. This has happened severally in the past with cases like this.
We advise AMCON to exhaust all legal, moral, and interpersonal avenues to convince the recalcitrant debtors to pay up. When all else fail, the agency can resort to the legal option with a view to identifying and confiscating the assets of the debtors as part of the recovery process. This, in our view, is a more effective option.
All considered, it is disheartening that the AMCON debt has piled up to the level it has reached. The N1.146 trillion involved is no small amount, especially now that the economy is in dire straits. The sum will go a long way in re-inflating the economy.
The amount in question is almost one-quarter of the 2016 budget, one-third of which is going to be borrowed. It would be a big relief, therefore, if the debtor organisations pay up.
That is why we view the action of the 220 firms involved in the AMCON debt as economic sabotage which should be condemned by all right thinking persons. We ask the directors of these firms to have a re-think and take urgent steps to repay the loans. This is the only way the laudable initiative of AMCON in saving most of the affected organisations from certain liquidation would not have been in vain.
Besides, the future beckons. Their action could deny other organisations which may need similar bailouts in future the opportunity of such initiative. Even worse, this huge indebtedness to AMCON has the capacity to depress our credit rating with investors abroad. At a time when the nation needs all the investments it can get, that would be a very unsavory outcome.
There are lessons for the future from the present AMCON debacle. We understand that as a first measure, firms which owe up to N1 billion will no longer be able to borrow from the banks.
This is a good deterrent for firms which, like the present ones, may want to abuse the privilege of borrowing without commensurate commitment to pay back.
Even more important is the need not to present government and its agencies as Father Christmas. In future, some of these firms may be allowed to go into liquidation rather than allow taxpayers bear the consequence of their poor management by their directors.
For now, we caution AMCON to be wary of the ‘naming and shaming’ option. It should, instead, resort to legal action to recover its funds. The naming option had, in the past, resulted in wrongful listings and disclaimers, which led to distractions that are not beneficial to the cause of recovering the debts.
Though court processes may be protracted and  expensive, they are the best way to recover the huge funds that are currently in the hands of these recalcitrant debtors.

Click Here>>>>>>7 Natural Herbs to Finally End Premature Ejaculation and Weak Erection<<<<<<

Click Here>>>>>>Anti-kidnap and anti-theft device for tracking and listening<<<<<<

sunnews

sunnews

Related Posts

Kwankwasiyya petitions Chinese bank, Lawan to block Ganduje’s €684m loan request 
Editorial

Lawan @ 62: Man of candour and focus

12th January 2021
Buhari’s 60th independence anniversary address
Editorial

Buhari’s New Year speech

12th January 2021
Orji Kalu, my dad, Gov Ikpeazu and I –Abia Speaker
Cover

Orji Kalu, my dad, Gov Ikpeazu and I –Abia Speaker

11th January 2021
Next Post

Femi Osofisan Wins Thalia Prize 2016

Popular Hausa artiste, Dan-Indo dies at 55 in Kano

Popular Hausa artiste, Dan-Indo dies at 55 in Kano

Before French becomes compulsory in Nigerian schools

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Highlights

I won’t dump PDP – Wike

Varsity staff embark on 3-day protest, say IPPIS is a scam

SSANU, NASU shut down UniAbuja in protest 

APC ‘ll teach USA, developed nations how to win non-rancorous election–Gov Bello

NANS kicks against postponement of school resumption date 

2023 Elections: INEC ponders review, introduction of new technologies 

Trending

Confusion in Kogi as another 37 governorship aspirants endorse indirect primary
Politics

APC to triple membership ahead of 2023 poll

12th January 2021
0

Gov. Yahaya Bello of Kogi says the All Progressives Congress (APC) will triple its membership ahead of...

IGP mourns death of 7police officers on anti-banditry operation to Kastina 

IGP appoints new commissioners for Sokoto, Delta, Adamawa, Imo, Ebonyi others

12th January 2021
Ondo: organized labour blast Akeredolu’s aide over attack on teachers

Dismissed Ekiti workers, labour protest against Assembly, seek reinstatement

12th January 2021
3 in police net over Saturday’s alleged explosion in Port Harcourt

I won’t dump PDP – Wike

12th January 2021
Varsity staff embark on 3-day protest, say IPPIS is a scam

Varsity staff embark on 3-day protest, say IPPIS is a scam

12th January 2021
ADVERTISEMENT

Follow us on social media:

Categories

  • Abuja Metro
  • Arts
  • Broken Tongues
  • Business
  • Business Week
  • Cartoons
  • Citizen Joe
  • Columns
  • Cover
  • Culture
  • Duro Onabule
  • Editorial
  • Education Review
  • Effect
  • Elections
  • Entertainment
  • Events
  • Features
  • Femi Adesina
  • Food & Drinks
  • Frank Talk
  • Funke Egbemode
  • Gallery
  • Global Square by Kenneth Okonkwo
  • Health
  • Insights
  • Kalu Leadership Series
  • Kunle Solaja
  • Kunle Solaja
  • Letters
  • Lifeline
  • Lifestyle
  • Literary Review
  • Marketing Matters
  • Muiz Banire
  • National
  • News
  • Offside Musings
  • Opinion
  • oriental news
  • Politics
  • Press Release
  • PressClips
  • Public Sphere
  • Ralph Egbu
  • Shola Oshunkeye
  • Sideview
  • South-west Magazine
  • Sponsored Post
  • Sporting Sun
  • Sports
  • Sun Girl
  • Tea Time
  • The Flipside – Eric Osagie
  • The Sun Awards Live
  • The Sun TV
  • Thoughts & Talks
  • Time Out
  • Today's cover
  • Tola Adeniyi
  • Travel
  • Travel & Tourism
  • Trending
  • TSWeekend
  • Turf Game
  • Uncategorized
  • Updates
  • Views from Abroad
  • Voices
  • World
  • World News
  • Home
  • About Us
  • Paper Ad Rate
  • Online Ad Rate
  • The Team
  • Contact Us
  • Privacy Policy

© 2019 The Sun Nigeria - Managed by Netsera.

No Result
View All Result
  • Home
  • National
  • Columns
    • Broken Tongues
    • Capital Matters
    • Diabetes Corner
    • Duro Onabule
    • Femi Adesina
    • Frank Talk
    • Funke Egbemode
    • Insights
    • Kalu Leadership Series
    • Kunle Solaja
    • Offside Musings
    • PressClips
    • Public Sphere
    • Ralph Egbu
    • Shola Oshunkeye
    • Sideview
    • The Flipside – Eric Osagie
    • Tola Adeniyi
  • Business
  • Politics
  • Entertainment
  • The Sun TV
  • Sporting Sun

© 2019 The Sun Nigeria - Managed by Netsera.

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist