The Management of Asset Management Corporation of Nigeria has called on all agencies of the Federal Government and all stakeholders to join its debt recovery drive to guide against the huge opportunity cost of not recovering its huge total current exposure.
The corporation which in recent past had said its obligations was N5tn, disclosed that its current exposure stood at N4.4tn.
It stated this in a statement titled ‘Risk of not recovering over N4.4tn current exposure bad for economy – AMCON’.
It stated, “This colossal outstanding going by the 2021 budget estimate rivals the entire budget of the 36 states of the Federal Republic of Nigeria.
“N4.4tn, which is owed AMCON is bigger than the entire 2021 capital expenditure budget of the Federal Government of Nigeria, which stands at N3.85tn.
“It is also bigger than the N3.12tn for total foreign debt service for 2021 and personnel cost of N3.7tn.”
Of this figure, the government agency disclosed that its 350 obligors alone accounted for N3.6tn, which is 82 per cent of the outstanding exposure of N4.4tn, which if recovered would be enough to complete the revival of the moribund Ajaokuta Steel Company and construction of many more of such projects.
The development of the iron and steel sector as well as the electricity sector were essential ingredients to industrialisation in any country and the debt owed AMCON could do a lot in improving electricity generation and distribution as well as revival of the challenged iron and steel sector, it stated.
AMCON added that the huge debt if recovered would be enough to capitalise over two million micro businesses with N2m cash injection each or 200,000 Small and Medium Enterprises with N20m per SME, which would create over 10 million jobs in the country.
By this, the agency said thousands of unemployed youths who were involved with all sorts of violent crimes would be engaged positively.
With all these facts and its negative effect on the economy, the corporation explained that it would not be fair to allow this crop of obligors that have collectively destroyed the commonwealth of Nigerians escape justice, which was why it was calling on all sister agencies to support the recovery drive.
AMCON assured that it was determined to recover these debts because the money belonged to Nigerian taxpayers.