The House of Representatives Committee on Banking and Other Ancillary Institutions has proposed the establishment of a specialized judicial task force to speed up the resolution of cases involving the Asset Management Corporation of Nigeria (AMCON).
This initiative aims to address the significant backlog of AMCON cases, many of which involve substantial financial recoveries for the government.
The task force is designed to tackle the 350 major debtors who are responsible for over 80 percent of AMCON’s total loan accounts, ensuring they fulfill their financial obligations and contribute to the nation’s economic recovery.
Committee Chairman Eze Nwachukwu discussed the proposal during an interview at the 2024 Retreat of the House of Representatives Committee on Banking and Other Ancillary Institutions with AMCON in Enugu.
Nwachukwu expressed frustration with the 350 debtors who are hindering economic progress by withholding resources.
“We can’t fold our hands and watch them walk away with our collective resources,” Nwachukwu stated.
“We have the list of these obligors and will propose a resolution to address AMCON’s challenges, including the establishment of a Judicial Taskforce to expedite debt recovery.”
Nwachukwu also criticized the preferential treatment given to political cases over economic issues, asking, “If political cases receive lifetime attention, why not prioritize our nation’s economic issues?” He pledged decisive action to mitigate further economic hardship.
He outlined AMCON’s role in stabilizing Nigeria’s financial system by addressing non-performing loans and recovering distressed assets.
Despite AMCON’s progress in bolstering the banking sector, Nwachukwu acknowledged the need for strategic adjustments to adapt to changing economic conditions.
The retreat, themed “Revitalizing Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” highlighted the necessity of robust policies and innovative approaches for effective asset management.
Nwachukwu stressed the importance of policy reforms to enhance AMCON’s effectiveness and support sustainable economic growth.
AMCON Managing Director and CEO Gbenga Alade revealed that the Corporation is currently handling 1,865 court cases at various judicial levels in its loan recovery efforts.
He noted that 350 debtors account for over 80 percent of the purchased accounts, with 246 of these debtors involved in ongoing legal disputes with AMCON.
Alade expressed frustration over debtors using legal loopholes to delay proceedings but acknowledged AMCON’s significant recovery achievements, totaling N1.9 trillion.
This includes 43 percent from cash recovery and 13.3 percent from the sale of bridged banks, among other sources.
AMCON’s representative, Mr. Lucky Adaghe, reported that as of December 2023, the Corporation has contributed 34 percent to the funding plan, with the remainder sourced from bond sinking funds, contributions from banks, and the Central Bank of Nigeria.
