How AMCON Cripples Shipping Businesses In Nigeria

Shipping experts have blamed the Assets Management Corporation of Nigeria (AMCON) for the decline of shipping foremost assets ‘ships’ in Nigeria over the years.

According to analysts, AMCON take-over of ships have seen the assets run aground and eventually sold as scraps without attempts to salvage the assets.

While AMCON is within its legal ambit to seize the vessels following bad loans of their companies, most ships failure to repay the loans are results of the tough shipping business environment and harsh government policies on shipping in the country.

Some of the high profile ship owners who have had their assets seized by AMCON include the President of Ship Owners Association of Nigeria (SOAN), Dr. Mkgeorge Onyung, Chairman of Morlap Group, Chief Isaac Jolapomo, CEO, RANGK Limited, late Rear Admiral Ndubuisi Kanu, among others.

While the case of Dr. Mkgeorge Onyung is still before the court, some members of Kanu’s family claim that all vessels belonging to Rear Admiral Ndubuisi Kanu were seized by AMCON and Chief Jolapomo attributed the loss of his assets to a setup perpetuated by the Nigerian National Petroleum Corporation (NNPC).

According to the family sources, the trauma from the colossal fiscal losses worsened the former Military Governor’s health condition which eventually led to his death, even as his company’s headquarters at 38, Kofo Abayomi street, Victoria Island, Lagos has been seized by AMCON.

Meanwhile, some concerned ship-owners have alleged that AMCON never seizes assets of highly placed Northerners, opining that some degree of nepotism is being practised by the company.

Findings by MMS Plus showed that Ndubuisi Kanu had six vessels; MV Akwa Star, a Crew Supply boat of 94 GT, MV Simone K, Crew Supply boat of 242 GT, MV Seamark, Crew Supply boat of 242 GT;  MV Rangk Pride, a Fast Support Intervention Vessel (FSIV) 364 GT; MV N’GOUNIE, a Supply Vessel 309 GTV; MV ‘C RACER’ a Fast Support Intervention Vessel (FSIV) 454 GT.

Five of the vessels are out of range, however, further investigations revealed that MV Simone K, a Crew Supply boat of 242 GT is at South America East Coast (coordinates 23.56323 S / 43.45555 W) reported 39 days ago by AIS. The vessel is en route to the port of Daesan, Korea, sailing at a speed of 12.9 knots and expected to arrive there on Feb 3, 04:00.

Our findings also show that the headquarters of Ndubuisi Kanu’s RANGK Limited on Kofo Abayomi street, Victoria Island has been sold to the Nigerian Export Promotion Council (NEPC) and all the occupants  given quit notice that elapses in February 2022.

When contacted, SOAN President, Dr. Mkgeorge Onyung declined speaking on MV Breakthrough, noting that he has taken AMCON to court over the vessel, and it could be tantamount to contempt for him to speak about it to the press.

However, speaking as a concerned stakeholder and a President of SOAN, Onyung lamented that Nigerian ship-owners have been worried about AMCON’s handling of ships belonging to members.

Noting that the AMCON boss, Mr. Ahmed Kuru was recently invited to make some clarifications on some seized assets, Onyung also opted to see how the events pan out before commenting further.

Meanwhile, he noted that industry stakeholders should be concerned about how AMCON treats the shipping industry in comparison to the aviation sector.

His words: “I’ve just been inaugurated into the expanded partnership Committee on the Blue Economy. Finally, the federal government has geared up take the bull by the horns by looking at the maritime industry as the most sustainable key that would unlock the economic prosperity of the nation. There has been too much talk about various issues on the shipping, seaports, inland dry ports, logistics, cost, etc. I thinks it’s time to focus one at a time.”

“I’m trying to set-up a meeting of ship-owners that would also involve the press to engage two or three ship-owners talking about these issues. The issue of AMCON would be discussed elaborately, by one of the ship-owners and subsequently I would analyze how the industry is being treated in perspective. While we compare this to the aviation industry which doesn’t pay duties on aircrafts.”

“People can buy private jets for $25million and not pay any customs duty to use it in Nigeria. However, if someone buys a $25million vessel, you’ll have to pay over 13% as duties. These are issues that we have been discussing over the years, but as members of the Blue Economy Committee we have to begin to integrate them as we speak.”

The SOAN President noted that in 2021 ten shipping companies in the world consistently made $10billion per month throughout the year, stressing that ships are the major assets of these shipping companies but Nigeria kills the assets.

Last week, the Economic and Financial Crimes Commission (EFCC) quizzed the Managing Director of AMCON, Ahmed Kuru, for alleged infractions linked to some assets sold to associates, MMS Plus learnt.

Efforts to get an official reaction from the Head of Corporate Communications, AMCON, Mr. Jude Nwauzor on the handling of ships seized by the Corporation and the details surrounding the AMCON Managing Director’s interrogation by EFCC were futile.

AMCON was established by the Act of the National Assembly of Nigeria in July 2010 with an intended 10 years lifespan, acts as the buyer of banks for the Nigerian Government by acquiring the non-performing loans (NPL). However, the technicalities of shipping have left most vessels acquired by AMCON ending up as wrecks and abandoned on the nation’s waterways.

Beyond the environmental and security dangers posed by these wrecks, shipping experts have also lamented that the approach by AMCON sees the country lose already limited shipping assets that should have provided ample jobs and seatime experience for the nation’s seafarers.

Speaking with MMS Plus on this issue recently, the President General of Maritime Workers Union of Nigeria (MWUN), Comrade Adewale Adeyanju urged the debt recovery agency not to allow its activities cripple shipping.

His words: “I’m concerned about this issue because the seafarers who work onboard those ships are under MWUN. This move to salvage airlines by AMCON simply shows that the government is more concerned about the airlines and the aviation sector than ships and the shipping industry. To me, this shows the level of government interest in the shipping industry.”

“While we aren’t saying that airlines should be abandoned, in order of priority I think shipping should come first. Any nation that doesn’t regard its shipping sector would struggle with economic stability. We can only advise the Federal Government and its agencies like AMCON to have regard for the shipping sector and they should show this by astutely managing maritime assets that have been seized.”

While recognizing the statutory role of AMCON in taking over indebted ships, he encouraged the agency to engage shipping experts on the best ways to salvage the ships because they are assets to the nation and the maritime industry.

“The goal should be to get the asset back to a position where it can repay the debt and not to kill it completely. So, this time around, AMCON has to change its system to ensure that indigenous ship owners are being encouraged. We have very experienced ship owners like Chief Jolapomo and others, who could be consulted by AMCON to discuss the headway for seized vessels. AMCON shouldn’t allow its activities to lead to more job losses and failed investments in the country, when they can redeem such investments,” he added.