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Ndubuisi Orji, Abuja
The House of Representatives, yesterday, resolved to investigate the N5.4trillion debt portfolio of the Asset Management Company of Nigeria (AMCON) and the alleged unwillingness of some of the debtors to pay up.
Consequently, the House mandated its Committee on Banking and Currency to evaluate the status of the debts as well as the practical, legal and other strategies for the recovery of the debts. The committee is expected to recommend a time frame for the recovery and other options such as amendment of the AMCON Act and report back to the House within three weeks for further legislative actions.
This is sequel to the adoption of a motion on “Accumulation of Debts by the Asset Management Corporation of Nigeria (AMCON), amounting to about N5.4trillion, an excess of its N800 billion Debt Ceiling” sponsored by Cornelius Nnaji at yesterday’s plenary.
Nnaji, in his lead debate, explained that 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.
However, the lawmaker noted that the agency is currently having difficulties in the recovery of debts owed by debtors, amounting to a total of N5.4 trillion and appealed to the House to intervene.
According to him, “AMCON claims that 20 individuals/entities are responsible for about 67 per cent of the N5.4 trillion debt portfolio of the corporation, an amount which is over 50 per cent of the 2018 Budget of Nigeria. Concerned that some of the debtors who owe large portions of the debts are alleged to be unwilling to pay”.
The motion was unanimously adopted when put to a voice vote by the Deputy Speaker, Ahmed Wase, who presided over yesterday’s plenary.
