By Tochukwu Bliss, Abuja
The Asset Management Corporation of Nigeria (AMCON), has been urged to continue to innovate and adopt best practices in asset recovery and management.
It was also charged to institute transparency, accountability, and efficiency in the quest to recover the total outstanding debt of nearly N5trillion owed by some obligors.
The Chairman, House of Representatives Committee on Banking and Other Ancillary Institutions, Nwachukwu Eze, gave the charge yesterday, when he led the House Committee on its first 2024 oversight visit, according to a statement by the Head, Corporate Communications Department, Jude Nwauzor.
It was said to be the first oversight visit to the Corporate Head office of AMCON in Abuja, since the new AMCON EXCO assumed office in February.
The Chairman noted that once transparency, accountability, and efficiency are instituted, the legislators will remain committed to providing the necessary support through appropriate legislative frameworks and oversight functions to ensure AMCON fulfills its recovery mandate effectively.
Mr. Eze was quoted as saying: “Moreover, we recognize 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.
“It is essential that AMCON remains steadfast in its mission, adopting innovative strategies and leveraging technology to enhance its operations.
“AMCON, since its inception, has played a pivotal role in stabilizing 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 made by AMCON 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.”
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.
Mr. Eze 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).
This empowers the National Assembly to oversight all Government Ministries, Departments, Agencies (MDAs) and Government owned Enterprises (GoEs) for judicious utilization 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 in his welcome remarks, AMCON’s Managing Director/CEO, Gbenga Alade, told the Committee that despite the shaky start-off model, the Corporation, with the support of the National Assembly, has made considerable recoveries.
He hosted the Committee along with his Executive Directors –Aminu Dan’amu, and Adeshola Lamidi, among other senior staff of the Corporation,
Mr. Alade was quoted as saying: “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 the Corporation, and the many battles it has had to fight afterward, informed that AMCON has disposed of proprietary assets worth about N651billion from inception to date.
Additionally, Mr. Alade said the Corporation has made a total repayment of N2.929trillion 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.
