The House of Representatives Committee on Banking and Other Ancillary Institutions has charged the Asset Management Corporation of Nigeria (AMCON) to uphold accountability and efficiency in its operations.
Speaking, the Committee Chairman, Hon. Eze Nwachukwu Eze on an oversight visit charged the AMCON leadership to continue to innovate and adopt best practices in asset recovery, management, transparency, accountability, and efficiency in the quest to recover the total outstanding debt of nearly N5 trillion owed AMCON by some obligors.
The visit was the first oversight visit of the Honourable Eze-led Committee to the Corporation since the new AMCON EXCO assumed office in February.
The Chairman said that once transparency, accountability, and efficiency remain the cornerstones of AMCON’s operations, as legislators, the committee members will be committed to providing the necessary support through appropriate legislative frameworks and oversight functions to ensure AMCON fulfils its recovery mandate effectively.
Again, Hon. Eze added, “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 stabilising 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.”
He 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), which empowers the National Assembly to oversight all Government Ministries, Departments, Agencies (MDAs) and Government owned Enterprises (GoEs) for judicious utilisation 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, the AMCON MD/CEO who hosted the Committee with his Executive Directors – Dr Aminu Mukhtar Dan’amu, and Mr Adeshola Lamidi among other senior staff of the Corporation told the Committee that despite the shaky start-off model, the Corporation, with the support of the National Assembly, has made considerable recoveries.
Alade said, “To date, the Corporation has made recoveries in the sum of N1.960 trillion. Of the total recovery, cash recovery represents 43 percent, sale of bridged banks 13 percent, sale of proprietary shares 11 percent, clawback & repurchases 9 percent, sale of property assets & rentals 9 percent, investment income 7 percent, while others represent about 7 percent.”
The AMCON boss who took the members down memory lane of what led to the creation of AMCON and the many battles the Corporation had to deal with since its establishment informed that AMCON has disposed of proprietary assets worth about N651 billion from inception to date. In addition, Alade said the Corporation has made a total repayment of N2.929 trillion 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.