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AMCON lobbies NASS over setting up of special tribunals for debt recovery




The Asset Management Corporation of Nigeria (AMCON) has beseeched the National Assembly to ensure the amendment of the provisions of the newly amended Banks and Other Financial Institutions Act, 2020 (BOFIA, 2020), which sets up Special Tribunals for hearing financial matters emanating from financial institutions.

This appeal was made known by the Managing Director/Chief Executive Officer of AMCON, Mr Ahmed Kuru, before the Senate Committee on Banking, Insurance and other Financial Institutions on Wednesday, April 14.

According to Kuru, this is in order to quickly settle the Corporation’s liability in excess of N5.4 trillion.

Kuru said the proposed amendment and a few others will be critical to AMCON’s expected deliverables as they would enable the Corporation to resolve the debts fast.

Read also: Senate passes bill to strengthen AMCON against influential debtors, toxic loans

He said: “The designation of a special tribunal for financial cases immediately assumes the achievement of quicker resolution of matters in Court as the judges are designated to hear only such financial matters.

“Moreover, BOFIA prescribes a maximum period of six months to conclude matters brought before the Tribunal. AMCON being accommodated under this Tribunal will assist AMCON with its speed of recovery.”

Providing justification on the proposal, Kuru reminded the Committee that Section 61 (b) is ascribing a tenor for the operation of the Resolution Cost Fund, describes same as a period of 10 years from the calendar year 2010 but may be extended by not more than a maximum of five years by the National Assembly.

This, he said, was done under the assumption that the debt obligations will be extinguished within 10 years.

Kuru explained that it is worrisome that if AMCON disposes of all the assets securing the loans, it can only realise slightly above N1tr with the liability in excess of N5.4tr.

He also noted that the AMCON Act encourages asset tracing for accounts for the gap, plus contributions from the financial institutions including the CBN.

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