A bill seeking to empower the Asset Management Corporation of Nigeria (AMCON) in regards to recovery of assets, has scaled second reading at the Senate on Tuesday.
The bill titled “AMCON Amendment Bill 2021” was sponsored by Senator Michael Bamidele representing Ekiti Central.
President of the Senate, Ahmad Lawan, referred the bill to the Committee on Banking, Insurance and other Financial Institutions, chaired by Senator Uba Sani, for further legislative work.
According to Bamidele, the bill will strenghten AMCON against economic sabotage by debtors with unpaid loans to the tune of about N16 trillion naira.
“The main aim of this amendment is to update a few clauses in the Act that have been hampering the Operations of the Asset Management Corporation of Nigeria.”
“AMCON is a very important and strategic national institution that must be strengthened to effectively contribute to the stabilization of the banking sector in Nigeria.
“It proved its mettle in the banking crises of 2009. Our economy still grapples with huge challenges. The banking sector is not immune from the difficulties we face. We must therefore review and amend the AMCON Act (2014) in order to reinvent and reposition AMCON to optimally perform its functions.
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“In particular, this amendment will strengthen the hands of AMCON in assets recovery. AMCON must be reenergized to tackle the problem of toxic loans.
“Highly placed debtors have been employing different strategies and tactics to stall the repayment of loans. Cases drag on in courts for many years. AMCON has remained at the receiving end of these well laid and orchestrated acts of economic sabotage.
“Mr. President, Distinguished Colleagues, as patriots we have an obligation to empower AMCON and make its assets recovery efforts less cumbersome. We must remove all obstacles to its smooth operations. We must safeguard our banking sector and the economy in these trying times,” he said.
