The Asset Management Corporation of Nigeria has so far spent N123.6bn in its intervention programme in four sectors of the economy.

The sectors are stock market, manufacturing, agriculture and construction, according to a report by the corporation, which was obtained by our correspondent on Monday.

The report showed that AMCON intervened in the agriculture with the sum of N31bn, thereby preventing job losses in the sector.

In the stock market, AMCON intervened with a forbearance package of N22.6bn to 84 stockbrokers who were affected by margin trading.

 Also, it intervened in the construction industry with the sum of N19bn to support projects undertaken by construction firms.

AMCON’s support for the manufacturing sector was to the tune of N51bn, which came as a bailout to local vehicle assembly plants, breweries and steel manufacturers, among others.

The report said, “The banking sector has recovered sharply after the crisis with strong earnings drawing investors back to Nigerian shares following several years of turbulence in the local stock market that wiped 60 per cent off their value in 2008.”

It added that improved market confidence had emboldened companies to return to the market to raise capital.

The corporation had earlier said, AMCON has improved banks balance sheets, so banks can focus on lending to the real economy and support economic growth. We prevented a systemic crisis in the financial services industry and the liquidation and collapse of several banks.

In spite of the hostility of some debtors, the recovery process includes the opportunity for individuals and companies to negotiate a settlement. The corporation has made it clear that it is not a liquidator-type asset management company, but one that wants to help keep businesses going where possible; that save jobs and contributes to the economy in general.

Beside the intervention in those sectors, AMCON had acquired over 12,500 banking sector non-performing loans worth N1.65tn at a discounted value of $10.6bn.

The acquisition was above 95 per cent of NPLs in the industry with the banking sector NPLs dropping below five per cent.

It was gathered recently that AMCON had restructured a total of N1.5tn loans as part of efforts to recover debts owed it by corporate organisations.

The amount represents an increase of N500bn and N1.072tn from N1tn restructured as at January 2013 and N428bn restructured for 518 obligors in 2011, respectively.

Source: Punch (by Ademola Alawiye)