AMCON REPORTS N2.37 TRILLION LOSS

The Chief Executive Officer of the Asset Management Company of Nigeria (AMCON), Mustapha Chike-Obi

AMCON bought bad loans worth N4 trillion “with the acquisition costs at more than twice the initial estimates” accounting for the remaining expenditure, the Chief Executive Officer Mustafa Chike-Obi told reporters in Lagos.

According to Mr Chike-Obi, AMCON’s total assets amounted to N3.34 trillion.

It was not clear how the losses would be financed. AMCON’s bonds are state-backed and the amount written off equals half of Nigeria’s annual budget.

AMCON was set up in 2010 to absorb the sector’s bad loans in the aftermath of the crisis. The bank said the largest part of the losses was a N2.1 trillion write-down of those loans.

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