A Resolute Sale Despite Legal Hurdles
During an interactive session with journalists in Lagos on Thursday, AMCON's Managing Director and Chief Executive Officer, Gbenga Alade, confirmed the sale of IBEDC. He emphasized the corporation's success in renegotiating the sale price, stating, “Today, I announce to you that Ibadan DisCo has been sold. When we came in, it had already been sold, but we renegotiated the price and got almost double of what it was initially going to be sold for.”
AMCON had taken control of IBEDC in January 2022, following a Federal High Court judgment in September 2021 that stemmed from defaults in a Loan Service Agreement. While the transaction is still subject to legal disputes, Alade remained resolute about the finality of the sale. “We have sold it, and whatever is still happening in court, we will face it,” he asserted, adding that the process of handing over the power utility to the preferred bidder is nearing completion.
Battling High-Profile Debtors and Obstructionist Tactics
Alade used the forum to shed light on broader challenges faced by AMCON in its recovery mandate, expressing frustration over what he described as the obstructionist tactics employed by some prominent debtors. He highlighted the unique difficulties of dealing with such debtors, particularly those holding high government positions.
“Dealing with AMCON’s recalcitrant debtors is not easy, but dealing with such debtors who are in government, holding very high positions across different decision-making portfolios in governance, is one of the most challenging tasks I have ever faced in my career,” Alade explained. He accused these individuals of deliberately undermining the nation's economy by failing to honor their financial obligations. “These obligors never meant to repay the loans they took. Unfortunately for them, we were warned of this trend before assuming office. Our appointment is a call to serve the motherland, and we will deliver with humility and sincerity of purpose,” he added.
Alade also cautioned the media against being swayed by narratives designed to shield these debtors from accountability. “Please, no matter the skewed narration these obligors give you in your different newsrooms, kindly take it with a pinch of salt,” he urged journalists.
Resumption of Asset Sales and Strategic Divestments
A significant development revealed by Alade was the lifting of the embargo on AMCON’s asset sales, which had been imposed under the previous administration. This green light, following the inauguration of a new board, has enabled the corporation to move forward with several high-profile divestments worth billions of naira.
“The last time we met, we told you there was a ban on asset sales. But today, with the Board now in place, the sale of assets by AMCON has resumed. Consequently, we have sold some high-profile assets running into several billions of naira,” he stated.
In the aviation sector, Alade provided an update on Arik Air (in Receivership), which he described as being on the path to profitability. He also lauded the impressive turnaround at Aero Contractors, noting its distinction as the only Nigerian airline with a Maintenance, Repair and Overhaul (MRO) facility. “Aero Contractors is delivering massive value in the country. As of today, Aero is the only airline in Nigeria with an MRO, and that can only be the result of effective and prudent management,” he remarked.
Global Reach and Unwavering Commitment
To further strengthen its recovery efforts, AMCON has enlisted international asset tracers to locate hidden assets of chronic debtors worldwide. This move underscores the corporation's determination to leave no stone unturned in its pursuit of outstanding debts.
Alade reaffirmed AMCON’s steadfast commitment to its statutory mandate of stabilizing the financial system by recovering toxic assets. He pledged to operate with transparency, patriotism, and unwavering respect for the rule of law. “Our recovery efforts have been strongly supported by President Bola Ahmed Tinubu, the judiciary, the Central Bank of Nigeria, the Ministry of Finance, the Attorney General, the EFCC, the ICPC, the National Assembly, the Police, and other sister agencies,” he acknowledged, highlighting the collaborative effort behind AMCON's successes.
Established in 2010 in the aftermath of Nigeria’s banking crisis, AMCON was tasked with purchasing non-performing loans to restore confidence in the financial system and prevent systemic collapse. Alade reiterated that the Corporation remains resolute in this crucial mission, despite the significant challenges posed by uncooperative debtors.