PHOTO CAPTION: From left, Najib Sulaiman, Head of Strategy; Joshua Ikioda, Group Head of Enforcement; Lucky Adaghe, Executive Director of Operations, all of AMCON; and Eze Nwachukwu Eze, Chairman, House of Representatives Committee on Banking & Ancillary Institutions, during the House of Reps Committee retreat in Enugu State.
The Chairman of Nigeria’s House of Representatives Committee on Banking & Ancillary Institutions, Eze Nwachukwu Eze; at the weekend in Enugu noted the need to rethinking of the entire framework within which the Asset Management Corporation of Nigeria (AMCON) operates if its almost N5tr debt owed by seemingly recalcitrant debtors is to be recovered.
Eze who spoke at a retreat organized by management of AMCON for the lawmakers between Friday and Sunday, while noting the need for the debt recovery agency to be more brutish in the recovery strategy, and not allow a few obligors get away with the commonwealth of all Nigerians, said rethinking the framework requires strategic adjustments to make AMCON more proactive, agile, and effective in its interventions.
Charging AMCON to be undeterred by the personality or position of any obligor when enforcing on their asset, the committee chairman pledged the commitment of his members “to working closely with AMCON and other stakeholders to ensure that our policy framework supports the Corporation’s objectives.”
While doing this, he noted the need to “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.”
Eze said the recovery of such humongous amount from a few obligors will increase government’s revenue which would then be available to deliver the renewed hope agenda Mr. President promised Nigerians, according to a statement by Jude Nwauzor, the Head of Corporate Communications Department of AMCON.
The new AMCON management, he stressed, “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,” he added.
Caption: The Chairman and members of the House of Representatives Committee on Banking & Ancillary Institution, Eze Nwachukwu Eze, with the Executive Director of Operations, Asset Management Corporation of Nigeria (AMCON), Lucky Adaghe; and other officials of the corporation in a group photograph at the end of the retreat in Enugu State.
Speaking earlier, the Executive Director of Operations, Lucky Adaghe, who represented the AMCON MD/CEO, Gbenga Alade, 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 judgment 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.”
Presentations were also made at the retreat by Joshua Ikioda, the Group Head of Enforcement; Najib Sulaiman, the Head of Strategy; and Norbert Enenmoh of the Legal Department.
