Senate makes a move to retrieve N16trn AMCON loans

The Senate, on Tuesday, considered a bill seeking to enable the Asset Management Corporation of Nigeria (AMCON) with regards to assets recovery, and also fortify it against financial damages by loan defaulters to the tune of about N16 trillion Naira.

Senator Michael Bamidele, who represents Ekiti Central, sponsored AMCON Amendment Bill 2021 which scaled second reading on the floor.

Leading debate on the bill, Bamidele stated, “The main aim of this amendment is to update a few clauses in the Act that have been hampering the Operations of the Asset Management Corporation of Nigeria.”

As indicated by the lawmaker, under the present Act, the ongoing effortless operation of AMCON was threatened by the tenor put on a key financing provision for AMCON. He further declared that the recommended amendment was intended to enable more flexibility in the tenor of this key financing provision.

Bamidele further stressed that the amendment would fortify AMCON to stabilise the banking sector in Nigeria and allow the agency to carry out its purpose of assets and debt recovery.

He said, “AMCON is a very important and strategic national institution that must be strengthened to effectively contribute to the stabilization of the banking sector in Nigeria.

“It proved its mettle in the banking crises of 2009. Our economy still grapples with huge challenges. The banking sector is not immune from the difficulties we face. We must therefore review and amend the AMCON Act (2014) in order to reinvent and reposition AMCON to optimally perform its functions.

“In particular, this amendment will strengthen the hands of AMCON in assets recovery. AMCON must be reenergized to tackle the problem of toxic loans.

“Highly placed debtors have been employing different strategies and tactics to stall the repayment of loans. Cases drag on in courts for many years. AMCON has remained at the receiving end of these well laid and orchestrated acts of economic sabotage.

“Mr President, Distinguished Colleagues, as patriots we have an obligation to empower AMCON and make its assets recovery efforts less cumbersome. We must remove all obstacles to its smooth operations. We must safeguard our banking sector and the economy in these trying times.”

Meanwhile, Senator Adamu Aliero representing Kebbi Central disclosed that the amendment “will give teeth to AMCON to recover all debts that were given to private individuals and also companies.”

Senate President, Ahmad Lawan, mentioned the bill after it scaled second reading to the Committee on Banking, Insurance and other Financial Institutions for additional legislative work.

The Committee, which is led by Senator Uba Sani was granted four weeks to submit its report.