National Assembly Seeks To Review The AMCON Act; Winding Up

Date:

The Chairman of House of Representatives Committee on Banking and Currency, Hon. Sir Jones Chukwudi Onyereri announced yesterday that the House of Representatives has begun the process of amending the Act establishing the Asset Management Corporation of Nigeria (AMCON), eight years after it started operation.

Thank you for reading this post, don't forget to subscribe!

Hon. Jones Onyereri disclosed that the proposed amendment would further empower AMCON to go after its debtors, especially those that ride on some loopholes in the Act to perpetually engage AMCON in court.

The AMCON, a creation of the National Assembly in response to the global financial crises of 2008/2009, acquired over 12,000 non-performing loans worth about N3.7 trillion from 22 banks.

Out of this, AMCON injected N2.2 trillion as financial accommodation to 10 commercial banks in order to prevent systemic failure. This singular action, helped stabilize the financial system, protecting about N3.66 trillion of depositors’ funds; and saved approximately 14,000 jobs.

The task before AMCON now is the recovery of debts either through structured repayment or disposal of transferred assets towards settlement of the bonds.

Onyereri spoke at a one-day technical session with financial sector stakeholders in Abuja, where the challenges inhibiting AMCON from recovering debts were extensively discussed.

The committee also used the occasion to listen to presentations from the representatives of the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation and lawyers on how AMCON could function optimally as well as meet its mandate before sunset.

Speaking at the forum, Managing Director/Chief Executive Officer of AMCON, Ahmed Kuru described his assignment at AMCON as “very difficult,” but said there was need to change the recovery approach at the corporation with the backing of the National Assembly, especially since the remaining crop of AMCON debtors are defiant, recalcitrant and business heavyweights.

He said the debtors have the financial wherewithal to repay their debts but have refused to pay by going to court to tie AMCON up.

The AMCON boss said: “We have been doing this for the past seven years and we have realised that what we need now at this time in the life of AMCON is legislative help that would make it possible to recover these debts effectively and efficiently.

“At AMCON, we believe that the Act establishing the corporation can be amended as many times as possible by the National Assembly as long as they think it is appropriate to do so in the interest of the Nigerian economy. Given the difficulties we are facing presently, we are of the opinion that the Act establishing AMCON should be amended to reflect our sunset period”.

He said the corporation has realised that some obligors have since established another lifestyle that are different from what brought them to AMCON. So, the best it can do as a law-abiding agency of the government is take them to court.

“But the wheel of justice grinds slowly in the country. So, something drastic must be done if we all want AMCON to meet its mandate at sunset. So, we suggest that the National Assembly amends the Act establishing AMCON in such a way that the assets of the obligor(s) are automatically transferred to AMCON. From what we know, some of the obligors are working hard to ensure that the cases they have with AMCON in different courts outlive the lifespan of AMCON.”

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...

Sokoto kidnap victim who spent 96 days in bandits’ captivity dies after regaining freedom

March 28, 2024. Azonuchechi Chukwu. A kidnap victim, Salisu Iliyasu Takakume,...

Thirteen Residents Arrested For Failing To Use Pedestrian Bridge in Lagos

March 28, 2024. Azonuchechi Chukwu. Thirteen residents in Lagos state have...

Dangote budgets N15bn for food intervention across Nigeria

March 28, 2024. Azonuchechi Chukwu The Aliko Dangote Foundation, (ADF) has...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading