Why we took over Capital Oil – AMCON

IN what seems like an effort to clear the air on the controversies generated by the recent takeover of Capital Oil and Gas Industry,

The Assets Management Corporation of Nigeria (AMCON) has offered explanation on  why it took over the operations of Capital Oil and Gas Industry.

oil firm for the next two years. Based on the takeover, owner of the company, Dr. Ifeanyi Ubah, who is the governorship candidate of the Labour Party candidate in the November 16, 2013 election in Anambra State, has been greatly criticized in a section of the media for his 'inability to manage his establishment.'

Head of Corporate Communications of AMCON Kayode Lambo, explained that the corporation did not seize Capital Oil, but is managing it for a two year period to enable it recover the debt the company owes and, thereafter hand back the company to Ubah.

The take over came at inauspicious time for the owner of the company, Dr. Ifeanyi Ubah, who is the governorship candidate of the Labour Party candidate in the November 16, 2013 election in Anambra State.

His opponents in the election have latched on this development to portray as an ineffective leader who could not manage even his own company.

Lambo explained that Capital Oil is not the only company where AMCON is involved in a rescue operation.

'AMCON is involved in the operations of most of the banks, manufacturing companies and airlines operating in Nigeria,' he claimed.

Giving an overview of AMCON's interventions, the Managing Director and Chief Executive Officer of AMCON Mustapha Chike-Obi, said that AMCON have had to think about the consequences of its interventions, not just on one group of people, but on the economy as a whole.

'AMCON considered unemployment of young people in its activities; the corporation is conscious of anything that will create employment opportunities for young people, as well as promote business that has chances of survival.

He said that AMCON's style of intervention ensured that security is provided for performing loans of companies.'

According to Chile-Obi, Arik Air, for instance, owes AMCON N70 billion but because it has aircrafts worth N75 billion, AMCON decided to come in and assist in its operations.

'If AMCON had refused to come into the picture, which would not have made any good business sense, the airline which does 65 percent of the country's domestic air travels, may not have been in operation today. AMCON is aware that Arik Air has a credit from NEXIM Bank, and any attempt to handle her case without care would be disastrous to the country's image, and the situation could lead to a job loss of between 10,000 and 20,000 directly and indirectly.'

He also said that in the manufacturing sector, for instance, out of the 15 biggest companies, AMCON is involved in 10 of them, and in the downstream oil sector, out of the 10 biggest depots, AMCON is involved in eight.