Reps begin probe of AMCON N5.4 trillion debt portfolio

The House of Representatives has mandated it the Committee on Banking and Currency to investigate the debt portfolio of N5.4 trillion to AMCON and the alleged unwillingness of some of the debtors to pay.

The House also resolved 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, and report back within three (3) weeks for further legislative action.

These decisions were taken Wednesday during plenary, sequel to the motion on, ‘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  Nnaji (PDP, Enugu).

Nnaji while presenting the motion said, the House noted that 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.

According to him, the House also noted that “AMCON is currently challenged by difficulties in the recovery of debts owed by debtors to the tune of 5.4 trillion Naira.

“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”.

The motion was unanimously adopted when put to a voice vote by the Deputy Speaker, Ahmed Wase who presided over plenary.