The Bank of Agriculture Limited, has urged the Asset Management Corporation of Nigeria (AMCON) to expand its programmes to cover the Development Financial Institutions (DFIs).
Mr Waziri Ahmadu, the Executive Director, (Wholesale Finance) Bank of Agriculture Limited, made the call on Monday in Abuja.
Ahmadu revealed to Naija247news.com in a phone chat on the sideline of the public hearing on AMCON amendment bill organised by the Senate Committee on Banking, Insurance and other Financial Institutions.
The amendment, essentially, seeks to create a Sinking Fund or Resolution Cost Fund to cover any shortfall that may be needed to meet AMCON’s responsibility to redeem its debt securities.
He said that the non-oil sector of the economy had been making significant contributions to the growth of the Gross Domestic Product (GDP) of Nigeria’s economy by creating employment.
He said it was imperative for AMCON to help in clearing the liabilities of the DFIs to enable them provide financial support to agriculture, infrastructural development and Small and Medium Enterprises (SMEs).
“The Deposit Money Banks (DMBs) don’t lend much to the non-oil sectors of the economy. They don’t lend much to agriculture, infrastructure development and development and growth of SMEs.
“So, if AMCON should widen its scope of coverage to include the DFIs, they would have more access to new investments.
“They will also have new financial resources and be able to increase their lending to the real sectors of the economy.
“Since AMCON is there to alleviate the liquidity problems of different financial institutions, then they should be working with us (DFIs).
“They should be accepting our toxic assets and giving us the fresh air that they give to DMBs,” he said.
Earlier, the Senate President, Sen. David Mark, represented by the Senate Leader, Sen. Victor Ndoma-Egba, urged the committee to consult widely to achieve a result that would be acceptable by all.
Mark advised the committee to use the public hearing to “generate authentic information that will enhance and guide the Legislature in its legislative actions”.
“You should try to make further wide-ranging consultations with various key institutions and stakeholders in the sector, including policy makers, other legislators and members of the public,” he said.
The Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Sen. Bassey Otu, said the amendment would help AMCON to reduce the volume of non-performing loans.
Otu said the committee would not relent in its efforts to gather relevant information from experts and industry operators to assist it in achieving an acceptable outcome.
Also speaking, the Managing Director of AMCON, Mr Mustapha Chike-Obi, said that the corporation was determined to ensure that the fiscal cost to government was reduced to the minimum.
Mustapha stressed that the corporation must remain vigilant in order to avoid any future crises in the financial sector.
“Through the passage of these amendments to an excellent Act, the ability of the corporation to achieve best financial returns would be greatly enhanced,” he added.
Those who attended the public hearing include representatives of the CBN, NDIC, SEC, Bank of Industry, and heads of private financial institutions
