Managing Director/Chief Executive, AMCON, Mr. Ahmed Kuru disclosed this while briefing the press on the performance of the company in the 2016 financial year.
The Head, Finance & Budgeting, AMCON, Mr. Olugbenga Ataiyero, while speaking during an interactive session with journalists in Lagos, explained that while N86.9 billion came from cash collection, the amount realised from some obligors that felt that they could settle outstanding obligation through forfeiture of their assets was about N30.4 billion and property sales was about N8 billion.
The Managing Director, Mr Kuru said that in spite of the economic challenges, AMCON was able to improve on its performance by reducing its group losses for the year by N57 billion to N352 billion at end of December 2016 from N295 billion at end of December 2015.
He said: “For AMCON stand-alone financial statement, we did a lot of improvement from last year. Last year we closed at N310 billion losses, this year we were able to manage it down to N251 billion losses. We had a very appreciable improvement in terms of main operation alone.
“But we had the burden of subsidiaries that we had to add to our own figures. The position from last year doing a comparison of our performance for last year, we went a little bit back. For 2016, we closed at N315 billion for the year while in 2015 it was N295 billion.
So while on the part of AMCON there was an appreciable improvement in terms of our numbers, the losses came down drastically, by almost about N59 billion but for the group numbers.
AMCON said it made gains of N27.15 billion on fair value of its unstructured loans.
It
said it recorded efficiency in loss reduction. For instance, its credit
loss expense reduced by N37 billion in the year under review, just as
fair value on its property reduced from N20.26 billion in 2015, to N116
million in the review year. The corporation, through cost saving
measures, was able to reduce its expenses by N8 billion.
Ataiyero said the amount that has been contributed by banks into the sinking fund as at date was N913 billion.
“The
projection was that the banks were going to grow at 20 per cent, which
never came to pass. So, the contribution that we expected from the
sinking fund was not up to what we had budgeted. In 2016, we had
envisaged that the banks would have contributed about N288 billion, but
they actually contributed only N136 billion.
“So,
that was enough for us to pay down the principle. What we did was just
to service the interest of our loan from the CBN. We pray that the
contribution to the sinking fund would improve and then our losses would
begin to go down. It would have been much better for us as an entity if
the contribution from the sinking fund came in through our profit and
loss account. But that was not the case. We argued with our auditors and
they said it can only go into the reserves.
“So,
while we suffer interest expense, the contribution that would have
further brought down the losses, could not come through our profit and
losses. But it went into our balance sheet through reserves,” he said.
In
addition, Kuru said the AMCON is close to selling Peugeot Automobile
Nigeria to the President of the Dangote Group, Alhaji Aliko Dangote,
Kaduna and Kebbi states.
“We
have concluded all processes on the bids since about two months ago,
all we are waiting for (now) is the approval of the central bank,” Kuru
said.
Dangote,
in alliance with the states of Kaduna and Kebbi and the Bank of
Industry (BOI) development bank made a bid to acquire a majority stake
in PAN last year as AMCON seeks to sell off some of the assets it
acquired in the wake of the banking crisis.
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