Reps Challenge New AMCON Team To Recover N5trn Debt

House of Representatives has challenged the new executive leadership of the Asset Management Corporation of Nigeria (AMCON) to sustain transparency and accountability in the organisation’s operations.

The lawmakers gave the Gbenga Alade-led management the charge yesterday in Abuja.
They also asked the AMCON team to innovate and adopt best practices in asset recovery, management, transparency, accountability, and efficiency to recover the nearly N5 trillion debt owed the corporation by some obligors.

Hon. Eze Nwachukwu Eze, the chairman, House of Representatives Committee on Banking and Other Ancillary Institutions, declared at the Corporate Head office of AMCON earlier on Tuesday when he led the House Committee on its 2024 oversight visit.

It was the committee’s first oversight visit to the corporation since the new AMCON EXCO assumed office in February.

Nze said once transparency, accountability, and efficiency remain the cornerstones of AMCON’s operations, as legislators, the committee members will be committed to providing the necessary support through appropriate legislative frameworks and oversight functions to ensure AMCON fulfils its recovery mandate effectively.

Again, Eze added, “Moreover, we recognise that AMCON cannot achieve its mandate in isolation. Collaboration with the National Assembly, which this Committee represents, other financial institutions, regulatory bodies, and other stakeholders is crucial. As representatives of the people, we are committed to fostering an enabling environment that supports AMCON’s efforts and promotes the stability and growth of our financial system.

“As we navigate through the current economic landscape, marked by global uncertainties, and domestic challenges, the role of AMCON becomes even more critical. Resolving non-performing loans, recovering debts, and managing acquired assets are key to ensuring the stability and resilience of our banking sector. AMCON must remain steadfast in its mission, adopting innovative strategies and leveraging technology to enhance its operations.

“AMCON, since its inception, has played a pivotal role in stabilising the Nigerian financial system. In the aftermath of the 2009 global economic crisis, AMCON was established to address the non-performing loan crisis that threatened the stability of our banking sector. Today, as we reflect on the journey thus far, we acknowledge the significant strides AMCON has made in fulfilling its mandate. This visit aims to ensure that AMCON operates within the legal framework established by the National Assembly and achieves its objectives effectively and efficiently.”

He added that the visit to AMCON is part of their legislative functions, as enshrined in sections 62, 88, and 89 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), which empowers the

National Assembly to oversight all Government Ministries, Departments, Agencies (MDAs) and Government owned Enterprises (GoEs) for judicious utilisation of Government Funds and Order 21(2) of the House Standing Orders, Eleventh Edition (as amended), which placed AMCON under the oversight jurisdiction of the Committee.

Earlier, the AMCON MD/CEO, who hosted the committee with his executive directors – Dr Aminu Mukhtar Dan’amu and Mr Adeshola Lamidi, among other senior staff members, told the committee that despite the shaky start-off model, the corporation, with the support of the National Assembly, has made considerable recoveries.

Alade said, “To date, the Corporation has made recoveries in the sum of N1.960 trillion. Of the total recovery, cash recovery represents 43%, sale of bridged banks 13%, sale of proprietary shares 11%, clawback & repurchases 9%, sale of property assets & rentals 9%, investment income 7%, while others represent about 7%.”

The AMCON boss, who took the members down memory lane of what led to the creation of AMCON and the many battles the corporation had to deal with since its establishment, informed that AMCON has disposed of proprietary assets worth about N651 billion from inception to date. In addition, Alade said the Corporation has made a total repayment of N2.929 trillion to the Central Bank of Nigeria (CBN) from 2013 to 2023, which, of course, includes contributions to the Sinking Fund by other Deposit Money Banks (DMBs) and AMCON recoveries.