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The management of the Asset Management Corporation of Nigeria (AMCON) has been directed to begin compiling comprehensive records of its operations ahead of the corporation’s scheduled wind-up in 2030.
The directive was issued on Tuesday during the screening of the newly appointed Chairman of AMCON, Lamido Yuguda, by the Senate Committee on Banking, Insurance and Other Financial Institutions.
The committee, chaired by Tokunbo Abiru, also asked Yuguda to take a “bow and go” after the screening, citing his previous appearances before the panel and its familiarity with his credentials.
AMCON was established in 2010 as a special intervention agency to stabilise Nigeria’s banking sector by acquiring non-performing loans and distressed assets from banks.
The corporation was also mandated to recover more than N4 trillion in toxic debts owed by major obligors within its 20-year lifespan, which expires in 2030.
Raising concerns over the corporation’s approaching sunset date, Chairman of the Senate Committee on Finance, Sani Musa, urged the incoming board chairman and AMCON Managing Director, Gbenga Alade, to begin documenting the agency’s achievements, outstanding obligations and the status of its recovery efforts.
According to him, the committee requires an up-to-date assessment of AMCON’s performance before it winds up.
“AMCON was established to resolve challenges within the financial system, particularly non-performing loans, distressed banks and related financial obligations,” Musa said.
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He continued: “It has a statutory lifespan and is expected to wind up around 2030. Looking at that timeline, there is a need for this committee to receive an up-to-date report on the status of AMCON.
“We need to know where the corporation stands today, what it has achieved since inception and what outstanding responsibilities remain before its expected sunset.”
He was supported by Abiru, who endorsed the request and directed both Yuguda and Alade to prepare a comprehensive report for submission to the committee.
“I have no doubt that, in the not-too-distant future, the committee will receive a comprehensive response on the issues you have highlighted,” Abiru said.
He explained that the committee opted for a brief screening because Yuguda had appeared before it on several occasions in the past.
“We deliberately decided to keep today’s exercise brief because this is already the third time the nominee has appeared before us.
“We know him quite well, so today’s exercise has been more of a formal interaction,” he said.
