Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


AMCON set to redeem N1trillion bonds

20 December 2013, 17:20

Abuja - The CBN Governor, Malam Sanusi Lamido Sanusi, said the Asset Management Company of Nigeria (AMCON), would soon redeem N1 trillion bonds to its first four bond holders.

Sanusi disclosed this in Abuja on Friday at the signing of Memorandum of Understanding (MoU) between AMCON and CBN on bilateral negotiation for repayment of “bad loans” taken by AMCON.

The News Agency of Nigeria (NAN) recalls that AMCON was established by the CBN to buy off bad loans in the banks in 2009 as part of its banking sector reform strategies.

After taking over the loans, AMCON issued bonds, invested and sold some of the collaterals acquired from the banks to help in settling the loans.

 “AMCON is going to pay off N1trillion worth of bonds of entire series 1, 2, 3 and 4 that is held by core institutions outside the CBN.

“In October 2014, AMCON is going to write off another N1trillion again, that is series 5 held by banks and other institutions.

“When that is done, the only creditor to AMCON will be the CBN, no one will hold AMCON bonds unless they come to buy from us, we will be the only one to credit AMCON.

“This will now be AMCON owing the CBN and the CBN collecting its money from AMCON recoveries and the sinking funds of the institutions we regulate.”

According to him, this development is a positive credit to the economy of Nigeria and that the amount has limited probability of crystalising on the balance sheets of banks.

Sanusi said the MoU represented the outcome of bilateral negotiations between AMCON and the CBN.

He assured that by December 30, all investors holding series 1, 2, 3 and 4 bonds of AMCON would be repaid.

 Mustapha Chikeobi, Managing Director of AMCON, commended the CBN for its support and assured that AMCON would continue to work assiduously to ensure prompt pay off of the bonds.

“I want to thank the CBN for their support. This is your baby and it has grown up but we need more support in the years to come.

“We are really happy we got to this point; I think what Nigeria should take from this is that we intend to pay off this debt as soon as possible.

“With everything happening, it is certain that this will not end up as a burden on Nigerian tax payers.’’

Chikeobi also commended stakeholders and pledged the support of AMCON to the sector.

-    NAN


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...