Falana Warns, Says 370 Nigerian Owned Corporate Companies Owing Banks N5.4Trillion Whopping Loans

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Senior Advocate of Nigeria (SAN), Femi Falana

By Abiola Olawale

Radical human rights activist and Senior Advocate of Nigeria (SAN), Femi Falana has raised concern that several Nigerian elites are owing different banks a staggering N5.4 trillion.

Falana, in a statement issued on Sunday, said the Asset Management Corporation of Nigeria (AMCON) has been finding it hard to recover the debts, which he said were borrowed by about 370 companies.

The renowned legal luminary also called on the security agencies to immediately look into the issue and recover all the debts.

He emphasized that there is a critical need to enhance accountability and transparency in the nation’s financial transactions.

The statement reads in part: “AMCON is owed N5.4 trillion by the rich. A few years ago, commercial banks were going to collapse due to toxic loans taken by members of the ruling class.

“To prevent the impending economic doom, the Federal Government set up the Asset Management Corporation of Nigeria (AMCON) to buy off the loans with trillions of Naira provided by the CBN.

“AMCON has not been able to recover the loans of N5.4 trillion from about 370 corporate bodies.”

In the statement, Falana also criticised the Central Bank of Nigeria (CBN) for its handling of the sale of four commercial banks: Heritage Bank, Keystone Bank, Union Bank, and Polaris Bank.

The statement added: “Sometime in 2006, the CBN yanked off $7 billion from the nation’s foreign reserves and fixed it in 14 commercial banks in Nigeria.

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“When I reported the matter to one of the anti-graft agencies, the CBN claimed that it had forgiven forbearance.”

The statement also noted a controversial arrangement where the Ministry of Interior engaged a company called Continental Transfert Technique to collect the Combined Expatriate Residence Permit and Alien Card (CERPAC) fees of $2,000 annually from expatriates in Nigeria.

Alleging the diversion of N40 billion from the Federation Account, Falana said, “A company, Continental Transfert Technique had been hired by the Ministry of Interior to collect the Combined Expatriate Residence Permit and Alien Card (CERPAC) Fee of $2,000 per annum from every expatriate in Nigeria.

“The revenue from 2019 comes to an average of N40 billion per annum.

“This collection, which violates Section 162 of the Constitution and provisions of the Immigration Act 2015, is then shared on percentages of Federal Government, 30, Interior Ministry, 7, Immigration Service, and Continental Transfert Technique, 58 per cent.

“We challenged this illegality at the Federal High Court and won the cases. The court directed the NIS to collect the funds henceforth and remit the same to the Federation Account.

“But the contractor and the federal government appealed against the judgment and have continued to share the N40 billion per annum.”