AMCON set to take over Tinapa under new repositioning agenda

ASSET Management Corporation of Nigeria (AMCON) may soon secure the mandate of Cross Rivers State
Government to take over the management of Tinapa Business Resort, under an N18.509 billion buyback deal of the moribund organisation’s debt profile.
As part of the package, the Cross River State government will transfer its controlling interest in
Tinapa, while AMCON will provide N26 billion for the revitalization and resuscitation of the resort, to
reposition it as a private sector driven enterprise.
However, the takeover plans, still being deliberated upon by the state’s House of Assembly, did not disclose the total sum involved in the deal over as initial investment in Tinapa was put at over $400 million (N60 billion).
The Speaker of the Cross River State House of Assembly, Larry Odey informed the legislators of the transfer plans through a circular with reference no SSG/
GSA/300VOLXV1/223 and captioned Re-Approval for the Transfer of controlling interest in Tinapa Business Leisure Resort to Asset Management Corporation of
Nigeria (AMCON)” from the state government.
The letter stated that “following the inability of the resort to meet desired expectations of both Cross River state Government and core investors especially banks and some Local Government Councils in the State, it has been realised that the most viable options to salvage the Tinapa Business and Leisure Resort is to seek private
sector equity investment and divestment of significant interest of the state in the project”.
While presenting the letter, the Speaker told members that “the development is a thing of joy to the people of the state that negotiation has been concluded and cheering news to members of the Cross River State House of Assembly”.
However, the member representing Ikom 1 Agbiji, Mbe
Agbiji observed that the content of the letter did not mention the contributions of Local governments in the state that have invested the cost of seeding ownership
to AMCON and other details of the Memorandum of Understanding.
He said the letter did not also convey the total state investment in Tinapa as these are some of the vital ingredients people of the state would wish to know.
Jake Otu Enyia commended the wisdom of the state government in the divestment but noted, “we should not just pass it because it will amount to legislative
rascality; we need to put things straight because when I was Chairman of council, I contributed N180 million, so also other council areas”