House Of Reps Directs AMCON To Go After Debtors Irrespective Of Their Social Status

19th August 2024

The Chairman, House of Representatives Committee on Banking & Ancillary Institutions, Honourable Eze Nwachukwu Eze; at the weekend in Enugu renewed the campaign for all agencies of the Federal Government to join the debt recovery drive of the Asset Management Corporation of Nigeria (AMCON). Eze said the recovery of such humongous amount of nearly N5trillion owed AMCON by a few obligors will increase the revenue of President Bola Ahmed Tinubu’s government, and enable the government to deliver the renewed hope Mr President promised Nigerians.

Honourable Eze who led his committee to a retreat in Enugu, the capital of Enugu State attended by the leadership and management of AMCON said the debt recovery agency of the government presently led by Mr Gbenga Alade must be more brutish in the recovery strategy, which should not allow a few obligors get away with the commonwealth of all Nigerians. Hon Eze, according to a statement by Mr Jude Nwauzor, the Head of Corporate Communications Department of AMCON charged AMCON not to be deterred by the personality or position of any obligor when enforcing on their asset.

The lawmaker added, “The new AMCON management have to face the reality of debt recovery, which is not easy, and must not consider social status of obligors in carrying out enforcement actions. In fact, even if you find my name on the list of AMCON obligors, please come after me. The success of AMCON’s mandate is not the responsibility of one institution alone; it requires the concerted efforts of all stakeholders. This includes the government, financial institutions, the regulatory bodies, security agencies, and indeed the private sector.

“We recognise that the economic landscape is evolving rapidly. Global and domestic challenges require us to reassess our strategies and adapt to new realities. Retreats such as this presents us with another opportunity to reflect on AMCON’s journey so far, to identify areas where we can enhance its capacity, and to align our efforts towards ensuring that the Corporation continues to be a key player in our nation’s economic stability.”

According to the lawmaker, the theme of the retreat, “Revitalising Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” is not only timely, but also critically important. The task of managing distressed assets is complex, requiring robust policies, innovative approaches, and unwavering legislative backing. Revitalising, in this context, Eze said, “Means more than just improving existing processes; it involves a rethinking of the entire framework within which AMCON operates. It calls for strategic adjustments that will enable AMCON to be more proactive, agile, and effective in its interventions.

“In this regard, the Committee on Banking and Other Ancillary Institutions is committed to working closely with AMCON and other stakeholders to ensure that our policy framework supports the Corporation’s objectives. We must also consider the broader economic implications of these policies, ensuring that they contribute to sustainable growth and development. As lawmakers, it is our responsibility to provide the legal infrastructure that enables AMCON to fulfill its mandate effectively. This includes reviewing existing laws, proposing new legislative measures, and ensuring that AMCON has the necessary tools to navigate the complexities of asset management.”

Earlier, the Executive Director of Operations Mr Lucky Adaghe who represented the AMCON MD/CEO at the retreat urged the committee to continue to support the Corporation because as the economy tightens up, the assignment of debt recovery has also become even more difficult. Adaghe said, “The Nigerian economic landscape presents a complex web of challenges for debt recovery, as the country grapples with high inflation, and currency fluctuations. The current economic reforms such as the removal of fuel subsidy, foreign currency exchange unification etc. aimed at diversifying the economy and promoting growth are expected to positively impact debt recovery.

“Initiatives such as the National Development Plan 2021 – 2025, the Economic Recovery and Growth Pan (ERGP), and the Central Bank of Nigeria’s measures to strengthen the banking sector and enhance credit facilities, should improve business operations and increase revenue generation. Reforms will lead to increased employment opportunities, improved infrastructure and a more stable macroeconomic environment, ultimately enhancing debtors’ ability to repay their obligations.

“Even though the AMCON Act has gone through three amendments over the years, the obligors have mastered the operations of AMCON and have been taking advantage of the Court processes to frustrate AMCON. Despite the efforts made by this esteemed Committee in the amendment of the Act to aid our recoveries, some of the amendments are yet to be fully implemented due to some bureaucracy in government.”

Aside from that, Adaghe said, “AMCON obligors hide under legal technicalities to tie AMCON in Courts, exploring the loopholes in the statutes and the legal system. It is important to mention at this stage that the seed sowed by the past committees has yielded the much-needed fruit now awaiting a sickle to harvest the fruits and this will come by way of the support of this Committee to among others – designating specific AMCON Judges in the Federal High Court complexes across the country; accelerated hearing and granting of judgement on AMCON matters within 90 days; MCON courts to sit at least three days in a week, and the provision of issuing bench warrants for recalcitrant and evasive obligors.”

Finally, he said, “To enable AMCON succeed in its National call to duty, AMCON solicits the support of this esteemed Honorable Committee Members in the following areas: Engagement with the Judiciary through the relevant standing committees of the National Assembly on Judiciary towards full activation of the special provisions of the AMCON act as amended; Engagement with other shareholders within the Judiciary for the implementation of the practice direction and Amendment of the Act may be required towards extending Banks contributions to the Resolution Cost Fund to ensure that AMCON outstanding liabilities are extinguished, to avert their crystallization to the Federal Government.”

Other people who made presentations from AMCON at the retreat include Mr Joshua Ikioda, the Group Head of Enforcement, Mr Najib Sulaiman, the Head of Strategy and Mr Norbert Enenmoh of the Legal Department. The retreat ran from Friday 16 to Sunday August 18, 2024.