N69.4bn Debt: Court Orders Stay Of Contempt Proceedings Initiated By Jimoh Ibrahim Against AMCON

The Court of Appeal sitting in Abuja in the case between the Asset Management Corporation of Nigeria (AMCON) vs Barrister Jimoh Ibrahim has ruled that all proceedings including the contempt proceedings initiated by Ibrahim and co at the trial court should be stayed pending the hearing, and determination of the substantive appeal.

A statement from AMCON on Tuesday said the application for stay was argued on behalf of Corporation by their defence counsel A.U. Mustapha SAN & Co on March 30, 2022, and after listening to the arguments, the Court of Appeal delivered its ruling on Friday April 22, 2022.

With that ruling, Ibrahim and Co have been again neutralized from executing the said contempt proceedings order, which he obtained under questionable circumstances.

Recall that Ibrahim, NICON Investment Limited, NICON Insurance Limited, Nigerian Reinsurance Corporation owe the Asset Management Corporation of Nigeria (AMCON) a whopping N69.4bn with no intention whatsoever to pay.

AMCON over the years had tried all reasonable and peaceful resolution strategies to recover the debt from Ibrahim to no avail.

The Corporation said as a responsible debt recovery agency of the Federal Government of Nigeria, it approached the Federal High Court (FHC) in Suit No. FHC/ABJ/CS/760/2021 to seek justice, and accordingly received an order of the trial court to take over the businesses of Ibrahim.

AMCON further received the backing of the trial court to appoint a Receiver/Manager to oversee the businesses on behalf of AMCON.

Following the trial court’s ruling, Ibrahim, claimed that he was directed by the court on March 9, 2022, to commence contempt proceedings against the Executive Management of AMCON, which led AMCON to challenge the said ruling by filling Notice of Appeal before the Court of Appeal on March 14, 2022.

The matter between Ibrahim and AMCON has been interminable since the loan was purchased by the government debt recovery agency during the first phase of Eligible Bank Assets (EBA) purchases from Union Bank in the early days of AMCON.

AMCON said it is however, not deterred to recover the outstanding N69.4bn debt owed it by Barrister Ibrahim and his companies in the interest of the Nigerian economy and the public in general.

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