The National Assembly has assured the Asset Management Corporation of Nigeria (AMCON) of its support to recover the over N5.4 trillion outstanding debt owed by obligators.
Chairman, Committee on Banking and Currency, Federal House of Representatives, Hon. Victor Nwokolo assured the undertaker that the 9th National Assembly is committed to taking all necessary measures that would support it to recover the huge outstanding debt.
Why it matters: The National Assembly, through the committee, which has oversight mandate over AMCON, would work to ensure that the agency not only performs its function satisfactorily but ensures that the corporation delivers on its expected mandate given that it is a creation of the parliament in 2010.
Need for more Amendment? Nwokolo assured that the National Assembly would indeed continue to amend the Act until the Federal Government achieves that target for which AMCON was created in the first place, which is to stabilize the financial sector.
Given that the AMCON Act has been amended and already signed into law by President Buhari, Nwokolo said the National Assembly would continue to strengthen the laws of the country on enforcement. He said enforcement has become critical given the tactics of the debtors, which has constrained AMCON from achieving optimum results, especially since public funds were used to buy these loans that helped prevent systemic collapse of the banking sector in Nigeria at the time AMCON was created in 2010.
Managing Director, AMCON, Ahmed Kuru, who challenged the lawmakers to consolidate on the gains of the previous National Assembly said it is in the interest of the Nigerian economy to recover the debt because AMCON was not established as a charity organisation.
He added that AMCON raised its funds through Share Capital of N10 billion contributed equally by the Ministry of Finance (“MOF”) and Central Bank of Nigeria (CBN); 6% Bonds issued for a discounted value of N4.042 trillion (face value of N5.6 trillion) for the acquisition of Non=Performing Loans (NPLs). Other sources are the recapitalization of Eligible Financial Institutions (EFIs) and N500bn Debenture from the CBN at 3% annual interest rate, payable 2021.