Reps probe AMCON’s N5.4tn debt portfolio, debtors

The House of Representatives has resolved to investigate the debt portfolio of the Assets Management Corporation of Nigeria.

Also to be probed are bad debtors on AMCON’s list.

The House is conducting the probe following the unanimous adoption of a motion moved by a member, Cornelius Nnaji, at the plenary on Wednesday.

The motion was entitled, ‘Accumulation of Debts by the Asset Management Corporation of Nigeria Amounting to about N5.4tn, in Excess of its N800bn Debt Ceiling.’

Adopting the motion, the lawmakers mandated the Committee on Banking and Currency to “investigate the debt portfolio of N5.4tn to AMCON and the alleged unwillingness of some of the debtors to pay.”

The committee was also mandated to “evaluate the status of the debts and the practical, legal and other strategies for the recovery of the debts, including recommending a time frame and other options such as amendment of the AMCON Act.”

The House Committee on Insurance was also asked to probe the insurance part of the matter, while the panels were asked to report back within three weeks for further legislative action.

Moving the motion, Nnaji said, “The Asset Management Corporation of Nigeria was established in 2015 to, among other functions, acquire eligible bank assets from eligible financial institutions and to hold, manage, realise and dispose of eligible bank assets, including the collection of interest, principal and capital due and taking over of collateral, securing such assets.

“AMCON is currently challenged by difficulties in recovery of debts owed by debtors to the tune of N5.4tn. AMCON claims that 20 individuals/entities are responsible for about 67 per cent of the N5.4tn debt portfolio of the corporation, an amount which is over 50 per cent of the 2018 budget of Nigeria. Some of the debtors who owe large portions of the debts are alleged to be unwilling to pay.”