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Senate expresses concern over debt profile of AMCON

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5 years ago

November 22, 2019

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The Senate has expressed concern over the debt profile of the Asset Management Corporation of Nigeria (AMCON), and has therefore resolved to partner with other agencies to ensure the recovery of the N5trn debt.

According to the lawmakers, the decision to work with AMCON on the recovery of the debt was one of the outcomes of a retreat organised by the corporation for members of the committee in Kaduna.

The Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Uba Sani disclosed this in a statement in Kaduna on Friday.

He said it was troubling and unacceptable that after sinking trillions of Naira into taking over non-performing loan assets of banks, the AMCON could only boast of N800 billion assets as of the moment.

He explained further that part of the steps to be taken by the committee towards successful debt recovery include interfacing with “the executive, judiciary and civil society to fashion out a workable strategy to fast-track this recovery of Nigeria’s loan assets.”

The committee, according to the Senator representing Kaduna Central at the National Assembly, would also be “Inviting the founding fathers of AMCON to rub minds with our committee on the rationale for committing such incredible amount of resources to debts incurred by Nigerians who have shown scant regard for majority of their countrymen and women and are not committed to growth and development of our economy.”

Sani said further: “After sinking humongous Nigerian resources to the tune of N4 trillion into taking over non-performing loan assets of banks, AMCON today only boasts of N800 billion in assets.

“This is clearly unacceptable and the committee has resolved to confront the AMCON problem frontally as the institution has become a huge drain on the national economy.

“The committee also frowned at a situation where only 350 well-heeled Nigerians account for about 70% of the non-performing loans which have remained a source of instability in our financial system”.