Reps to probe N5.4trillion AMCON debts

The House of Representatives has resolved to probe the entire debt profile of Asset Management Company of Nigeria (AMCON).

The House also resolved to investigate lack of willingness by the debtors to repay the over N5.4trillion debt.

The decision followed a motion moved by Cornelius Nnaji of Enugu East/Isi Uzo constituency during Wednesday’s plenary.

According to Nnaji, AMCON went beyond the debt ceiling of N800billion ceiling, adding that the 20 people are responsible for 67% of the total debt.

The motions read in part, “Asset Management Corporation of Nigeria (AMCON) was established in 2010 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).

“AMCON is currently challenged by difficulties in recovery of debts owed by debtors to the tune of 5.4 trillion Naira.

“AMCON claimed 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.”

The House, therefore, mandated the Committees on Banking and Currency, and Insurance to identify the entire debt and the owners of the debt.

Also 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.