Nigerian Asset Manager Seeks Court Approval to Seize Properties

The Asset Management Corporation of Nigeria has applied to the Federal High Court in Abuja for an order allowing it to seize two residential properties owned by Maimako International Limited and associated parties.

The move follows the company's failure to repay an outstanding debt of more than 50 million naira that originated from a loan agreement with Skye Bank. The facility has remained unpaid since August 2008.

Skye Bank later collapsed and was absorbed into Polaris Bank. AMCON, which was established by the federal government to resolve non-performing loans in the banking sector, acquired the debt as part of its mandate to stabilise Nigeria's financial system.

Nigeria's asset recovery agency frequently pursues court remedies to recover funds from debtors whose obligations date back to the global financial crisis period. Such cases often involve long-running litigation in the country's specialised commercial courts.

The application, filed in March 2024, highlights the continuing efforts by AMCON to address legacy bad debts more than a decade after many of the original loans were extended. The corporation has previously obtained similar possession orders against other corporate borrowers across Nigeria.

Legal proceedings of this nature typically require the court to verify the outstanding balance, the validity of the security interest in the properties, and compliance with relevant banking and asset management regulations before granting relief.

Maimako International Limited and the other named parties have not, according to reports, settled the debt despite repeated recovery attempts by the successor institutions and AMCON.

The outcome of the Abuja court application will determine whether the two houses can be taken into possession and potentially sold to offset the long-standing obligation.

Based on reporting by Nairametrics.