The House of Representatives has resolved to set up a joint task force with the Asset Management Corporation of Nigeria, AMCON, for the recovery of debt from 350 obligors.
The Chairman, House of Representatives Committee on Banking and Other Ancillary Institutions, Hon. Eze Nwachukwu Eze made this known on Saturday during the 2024 Stakeholders Retreat of the Committee organized jointly with the Asset Management Corporation of Nigeria (AMCON) held in Enugu.
Hon Eze who regretted that those debtors are holding the nation’s economy at ransom, said that the lawmakers would continue to provide the legal infrastructure to strengthen AMCON to fulfill its mandate effectively and ensure the nation’s economic stability.
Speaking on the theme of the retreat, “Revitalizing Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” Hon Eze said they would set up judicial taskforce of judges to ensure quick debt recovery.
“We are here in Enugu for a serious business. We didn’t come here for jamboree when we have over 350 obligors who are Nigerians holding our collective resources. Hiding our economy to ransom. We can’t fold our hands to watch them walk away with that.
“We want to make it public to let the word know as we have the list of the debtors. Looking at the challenges at hand, we will at this retreat come up with a resolution to set up a joint taskforce committee, including AMCON, Economic and Financial Crime Commission, EFCC, and other relevant agency to look holistically on the challenges AMCON mentioned so far.
“Most especially among them is the urgent need to establish judicial taskforce of judges who will be sitting given number of days in a week to ensure that action is being speedy up to to make sure that these obligors are made to pay the debt for the interest of the country. If political cases have life time, why don’t we have it in this critical period of our nation’s economic challenge to rescue the situation.
“Policy is the bedrock upon which effective asset management is built. We must examine our current policies with a critical eye, identifying gaps that hinder AMCON’s operations and proposing reforms that will enhance its effectiveness. Whether it’s in the areas of asset recovery, debt resolution, or stakeholder collaboration, our policies must be forward-thinking and adaptable to the changing economic environment.
“In this regard, the Committee on Banking and Other Ancillary Institutions is committed to working closely with AMCON and other stakeholders to ensure that our policy framework supports the Corporation’s objectives. We must also consider the broader economic implications of these policies, ensuring that they contribute to sustainable growth and development.
On his part, the Executive Director, Operations, AMCON, lamented that out of the 12,743 loans purchased, 350 obligors constitute more than 80% of the total purchased accounts.
While calling for amendment of AMCON law to help the corporation recover the huge debt, he disclosed that debtors are hiding under the judicial technicalities to tie AMCON in court, taking advantage of loopholes in the statues and the legal system.
“Out of the 350 obligors, about 246 are in various Courts with us. This has continued to pose a major recovery challenge to the Corporation. Despite the challenges, actual contributions to the funding plan from AMCON stands at 34% as at December 2023. Cash Redemption of Bonds (Sinking Fund) and contributions by Bank/CBN to Sinking Fund make up the remaining 66%.
He however disclosed that the Corporation has made a total recoveries of N1.9tn.
