By Idowu Addison
The maritime sector is still grappling with the fallout of AMCON’s debt recovery exercise launched more than a decade ago, with several seized ships, tank farms, jetties and other critical assets valued at N69.4Billion remains tied up in litigation and receivership, despite their potential to support investment and economic activity.
Despite AMCON’s progress in recovering non-performing loans across various sectors, an investigation has revealed that several maritime assets valued at billions of naira remain locked in years of litigation, denying the economy the benefits of vessels, tank farms, jetties and other infrastructure that could otherwise be generating revenue and supporting maritime activities.
Stakeholders in the sector expressed concern that the prolonged disputes are turning potentially productive assets into stranded investments, with the passage of time threatening both their operational condition and commercial value.
The prolonged nature of AMCON’s asset recovery exercise is perhaps best illustrated by some of the high-profile maritime-related cases that have remained unresolved years after the Corporation took possession of the affected assets.
One of the most prominent cases involves businessman Jimoh Ibrahim’s Global Fleet Group. In November 2020, AMCON, acting pursuant to an order of the Federal High Court, took over 12 companies and assets linked to Jimoh Ibrahim over an alleged indebtedness of ₦69.4 billion. The portfolio included companies with interests in shipping, oil logistics and other strategic areas of the economy.
Ibrahim subsequently challenged the receivership, but the Court of Appeal in 2023 dismissed his appeal and upheld AMCON’s takeover. Despite the ruling, the wider recovery process has continued to linger, with aspects of the matter remaining unresolved and the affected assets still under receivership years after the initial takeover.
A similar pattern is evident in the case of Morlap Shipping Line, an indigenous shipping company founded by veteran shipowner, Chief Isaac Jolapomo. The company became caught up in AMCON’s debt recovery drive in the early 2010s, resulting in the loss of control of some of its vessels over indebtedness whose value was not publicly disclosed.
More than a decade later, questions remain over the final ownership and disposition of some of the vessels. There is no publicly available indication that the disputed assets have been returned to their former owners or conclusively disposed of, highlighting the difficulty of converting seized maritime assets into productive economic value when recovery proceedings remain unresolved for years.
Similarly, offshore support vessels belonging to Rangk Limited, a company associated with the late Rear Admiral Ndubuisi Kanu, became subjects of AMCON’s debt recovery exercise in late 2000. While substantial aspects of the debt recovery have reportedly been concluded, ownership issues involving some of the vessels have lingered.
The shipping and logistics assets linked to maritime entrepreneur Dr. Mkgeorge Onyung has also remained the subject of prolonged legal proceedings following AMCON’s appointment of receivers over alleged indebtedness. The matter has generated multiple court actions over the years without any publicly reported final resolution.
Beyond vessels, AMCON’s debt recovery portfolio also includes specialised maritime infrastructure such as tank farms, jetties and petroleum logistics facilities, many of which became the subject of receivership, following defaults on non-performing loans.
These assets, like vessels, are strategic national infrastructure whose prolonged inactivity has continued to generate concern among industry operators.
It was also gathered that although some assets have been sold over the years, several others remain tied down by litigation, receivership disputes or prolonged debt recovery proceedings, preventing them from contributing meaningfully to economic activities
Speaking with Vanguard on the development, maritime lawyer, Osuala Nwagbara, called for the urgent disposal of the assets, arguing that releasing them back into productive use would enable the maritime industry and the wider economy to derive greater value from them.
According to Nwagbara,”Once such assets are seized and if the proceedings that led to the seizures are proceedings that are in line with due process, and are being contested at higher levels of courts, the next step should be the disposal of such assets rather than allow them to away.
“Even where the cases are pending in courts and the assets are wasting away, the Courts have inherent powers to order that the assets be sold and paid into an account under the custody of the signature of the Chief Registrar of the particular Court to await the judgement.
“The idea is to preserve that asset and prevent it from rotting away because disposing the asset has its own benefits. Once that asset is disposed of, a new buyer revives the asset, create employment and adds wealth to society.”
Similarly, Chief Jolapomo told Vanguard that he had no direct dealings with AMCON, stressing that his dispute was with the bank that initiated the process leading to the seizure of his assets.
He said he would take legal action against the bank at the appropriate time, with a view to reclaiming the assets he said were taken from him.
Also reacting, maritime expert and former acting President of the Association of Nigerian Licensed Customs Agents, Dr. Kayode Farinto, said one of the greatest shortcomings in maritime asset disputes is the failure to preserve the value of the assets while litigation drags on.
“One of the biggest problems with maritime asset disputes is that we often focus so much on the litigation that we forget about the asset itself. A vessel is a commercial asset. Every day it remains tied up in a dispute, it is losing value, incurring costs and becoming less useful to whoever eventually succeeds in court,” he said.
“We need a system that resolves these disputes much faster. We need judges with specialized maritime expertise, stricter timelines to reduce unnecessary delays, and more practical measures to preserve the value of assets while cases are ongoing. The courts should be able to order interim management or even the sale of an asset so that its value is not completely eroded before judgment is delivered.
“I also believe that AMCON and other stakeholders should make greater use of mediation and negotiated settlements, particularly where prolonged litigation is doing more harm than good.
“So the issue is straightforward: there is little value in winning a case after many years if the asset at the centre of the dispute has already been wasted away.”
Reacting to the development, AMCON’s spokesman, Mr. Jude Nwauzor, told our Correspondent that his request could not get an immediate response because he would need to contact the relevant department to get an update on some of the cases.
Nwayzor also said that the agency will not be able to comment on assets that are still pending in courts adding that AM ON has ovet 2,000 cases in various courts across the country.
He however urged our Correspondent to write officially as it is only through such channels that the agency can respond appropriately.
Reacting to the development, AMCON’s spokesman, Mr. Jude Nwauzor, told our correspondent that he could not provide an immediate response because he would need to consult the relevant departments for updates on some of the cases.
Nwauzor explained that the Corporation could not comment on assets that are still subject to litigation, noting that AMCON currently has more than 2,000 cases before various courts across the country.
He, however, advised our correspondent to submit the request formally, stressing that the Corporation could only provide an appropriate response through official channels.
