The Asset Management Corporation of Nigeria (AMCON) has called for the creation of ‘AMCON Market’ which it said would involve key players in valuation, insurance, legal among other strategic stakeholders to enable it dispose several billions of Naira worth of assets that are tied down in its book due to inappropriate valuation, strange market forces among other vices.
Dr. Eberechukwu Uneze, an Executive Director with AMCON, who represented the MD/CEO of AMCON, Ahmed Kuru, made the call while declaring open a one-day sensitization forum for AMCON’s Valuers & Receiver Managers in Lagos.
He said the creation of the proposed AMCON market would help address a lot of irregularities that affect the outcome of valuation in the country.
“When you are appointed as valuers for AMCON please don’t just look at it as a business; kindly consider it as a national assignment because we owe it a duty to Nigerians to recover these debts as quickly as possible because AMCON is not here in perpetuity. Your contribution would help strengthen the hands of AMCON to enable the corporation realise its mandate.”
The AMCON boss said the call had become necessary because of the feedback the corporation gets from key stakeholders. He said there were allegations of unprofessional behaviour by some valuers who unnecessarily overvalue some assets, which in turn makes it impossible for AMCON to dispose such assst.
He informed the participants that the assets that are with AMCON belong mostly to companies and organisations whose loans were taken over by AMCON.
According to him, when the assets are overvalued at the point of forfeiture by obligors of AMCON, it becomes difficult for the corporation to realise the loan settlement amount or dispose the assets at competitive price, which underscores the need for a market realisable valuation by valuers at all times.
He said this is so critical because an over valuation of assets results in overstated forfeiture value and subsequent financial loss to AMCON at disposal.
In his own contribution, Chief Mike Igbokwe SAN, called on the leadership of AMCON to engage only tested valuers with the required expertise to be able to do the right job, which he said would help the corporation in its recovery efforts.
He however cautioned firms that are into the business of valuation to be professional in their approach as whatever valuation reports they carry out can also be tested by other firms, which could rubbish the image of such a valuation firm that submitted unprofessional report that did not follow proper methodologies ab-initio.
AMCON has a stockpile of assets, which it is finding difficult to dispose in the regular open market. The assets cut across critical sectors of the economy such as real estate, energy, transportation and aviation, maritime, agriculture and manufacturing just to mention a few.