Senate Moves To Recover N16trn AMCON Loans

• According to the lawmaker, “under the current Act, the continued smooth operation of AMCON is threatened by the tenor put on a key funding provision for AMCON.”

The Senate debated a crucial bill on Tuesday that would empower the Asset Management Corporation of Nigeria (AMCON) in asset recovery and reinforce it against economic sabotage by debtors with unpaid loans totaling around N16 trillion.

Senator Michael Opeyemi Bamidele endorsed the Asset Management Corporation of Nigeria (AMCON) Amendment Bill 2021, which received second reading on the floor (APC, Ekiti Central).

“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,” Bamidele said during Senate debate on the bill.

“Therefore, the proposed amendment is designed to allow for more flexibility in the tenor of this key funding provision,” he added.

Bamidele emphasized further that the amendment would strengthen AMCON in stabilizing Nigeria’s banking sector and empower the agency in carrying out its functions of assets and debt recovery.

“Mr. President, Distinguished Colleagues, AMCON is a critical and strategic national institution that must be strengthened in order to effectively contribute to the stabilization of Nigeria’s banking sector,” he said.

“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.

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“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 this 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.”

Contributing, Senator Uba Sani (APC, Kaduna Central) emphasized that, “AMCON largely depend on the resources from the resolution fund, and failure to extend this amendment bill will certainly affect the operation of AMCON and it may force the government to bear the entire cost of debt management of AMCON.”

On his part, Senator Adamu Aliero (APC, Kebbi Central), said the amendment “will give teeth to AMCON to recover all debts that were given to private individuals and also companies.”