Reps to probe AMCON’s N5.4trn debt portfolio

Members of the House of Representatives at Wednesday’s plenary resolved to investigate the debt portfolio of N5.4 trillion to Asset Management Corporation of Nigeria (AMCON) and the alleged unwillingness of some of the debtors to pay.

The House will also probe the insurance component of the debts, evaluate the status of the debts and the legal and other strategies to be deployed for the recovery of the debts.

The House mandated its committees on banking, currency, and insurance to carry out the investigation and recommend a time frame and other options such as amendment of the AMCON Act.

The lawmakers took the decision after they considered. and adopted a motion titled: “Accumulation of Debts by the Asset Management Corporation of Nigeria (AMCON), Amounting to about N5.4trillion, in Excess of its N800 Billion Debt Ceiling” sponsored by Cornelius Nnaedozie Nnaji.

Nnaji while moving the motion noted that AMCON is currently challenged by difficulties in the recovery of debts of about N 5.4 trillion . He claimed that some of the big debtors are allegedly unwilling to pay back debts owed the Corporation.

He said: “The House notes that the Asset Management Corporation of Nigeria (AMCON) was established 2015 to, among other functions, acquire eligible bank assets from eligible financial institutions and to hold, manage, realize and dispose of eligible bank assets (including the collection of interest, principal and capital due and taking over of collateral securing such assets);

“Also note that AMCON is currently challenged by difficulties in recovery of debts owed by debtors to the tune of N5.4 trillion; Aware that AMCON claims that 20 individuals/entities are responsible for about 67 percent of the N5.4 trillion debt portfolio of the Corporation, an amount which is over 50 percent of the 2018 Budget of Nigeria;

“Concerned that some of the debtors who owe large portions of the debts are alleged to be unwilling to pay”. Adopting the motion, the lawmakers gave the Committees three weeks within which to conclude the assignment and report back to the House for further legislative action.