The House of Representatives Committee on Banking and Other Ancillary Institutions has urged the establishment of a judicial task force dedicated to fast-tracking the prosecution of defaulters of the Asset Management Corporation of Nigeria (AMCON) loans.
This call followed a disclosure by AMCON’s Managing Director/CEO, Mr. Gbenga Alade, who revealed that a mere 350 debtors are responsible for over 80 percent of the 12,743 loans acquired by the corporation. Currently, 246 of these debtors are involved in legal disputes with AMCON.
During an interview at the ongoing 2024 retreat in Enugu, the committee’s chairman, Eze Nwachukwu, emphasized the need for urgent intervention to ensure that these debtors meet their financial obligations, thereby aiding Nigeria’s economic recovery.
Nwachukwu expressed his frustration over the situation, stating, “We cannot sit idly by while 350 Nigerians hoard our collective resources, putting the nation’s economy at risk.”
He further highlighted the disparity in the prioritization of political versus economic cases, questioning why political cases receive more attention while pressing economic challenges are overlooked. “If political cases warrant constant attention, our nation’s economic well-being should be a priority as well,” he said.
Nwachukwu also indicated that the committee would consider passing a resolution to establish a judicial task force to expedite debt recovery processes. He reiterated that AMCON was founded during a period of significant economic difficulty and has since played a crucial role in stabilizing Nigeria’s banking sector and broader economy.
Alade, represented by Mr. Lucky Adaghe at the retreat, shed light on the legal challenges faced by AMCON. He mentioned that the corporation is currently embroiled in 1,865 court cases across various judicial levels in its bid to recover debts. He lamented that debtors often exploit legal loopholes to prolong litigation, complicating the recovery process.
Despite these obstacles, Alade reported that as of December 2023, AMCON had contributed 34 percent to its funding plan, with the remaining 66 percent sourced from cash redemptions, bond sinking funds, and contributions from banks and the Central Bank of Nigeria. The corporation has so far recovered N1.9 trillion, with a significant portion coming from cash recoveries, sales of bridged banks, and other asset sales.
The retreat, themed “Revitalising Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” provided a platform for discussing the evolving economic landscape and the need for strategic adjustments to enhance AMCON’s effectiveness in maintaining Nigeria’s economic stability.
