Worried by the huge debt being owed the Asset Management Corporation of Nigeria (AMCON), the House of Representatives has resolved to investigate the issue.
To this purpose, it has mandated the Committee on Banking and Currency to investigate AMCON’s N5.4 trillion debt portfolio as well as the alleged unwillingness of some of the debtors to pay.
The committee is also investigate the insurance component of the debt profile, as well as the alleged unwillingness of some debtors to pay.
This is sequel to a motion brought before the House by Hon. Cornelius Nnaji and passed by majority of members on the floor
While presenting the motion, the lawmaker said the accumulation of Debts by the Asset Management Corporation of Nigeria (AMCON), amounting to about N5.4 trillion, is in Excess of its N800 Billion Debt Ceiling.
He said, “The Asset Management Corporation of Nigeria (AMCON) was established 2015 to, among other functions, acquire eligible bank assets from eligible financial institutions and to hold, manage, realise and dispose of eligible bank assets (including the collection of interest, principal and capital due and taking over of collateral securing such assets).
” AMCON is currently challenged by difficulties in recovery of debts owed by debtors to the tune of 5.4 trillion Naira.”
Nnaji said AMCON claims that 20 individuals/entities are responsible for about 67 percent of the N5.4 trillion debt portfolio of the corporation, “an amount which is over 50 percent of the 2018 Budget of Nigeria”.
He said it was disturbing that some of the debtors who owe large portions of the debts are alleged to be unwilling to pay.
The motion was not debated and was passed when the Deputy Speaker of the House, Idlris Wase, called for a vote.
The committee is also to “evaluate the status of the debts and the practical, legal and other strategies for the recovery of the debts, including recommending a time frame, and other options such as amendment of the AMCON Act.”
The committee is to report back within three weeks for further legislative action.
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