The Asset Management Corporation of Nigeria (AMCON) has solicited the support of the National Assembly in its efforts to recover the debt of over N5 trillion from obligors.
According to the Corporation, the 9th Senate could pile pressure on some of the obligors through its Committee on Banking, Insurance and other Financial Institutions, under the chairmanship of Senator Uba Sani.
The Managing Director and Chief Executive Officer of AMCON, Mr. Ahmed Lawan Kuru, made the solicitation at the weekend when he led the management of the Corporation to appear before a technical session of the Senate Committee on Banking Insurance and other Financial Institutions in Abuja.
The committee met to review the impact of COVID-19 on AMCON’s policies and processes, with a view to repositioning it for optimal performance amid the pandemic.
According to Kuru, the collaboration remains vital to recovering the huge outstanding debt, as it would have positive impact on Nigeria’s economy, especially with the challenge of the COVID-19 pandemic. He said although the Corporation had, with the aid of the National Assembly, sought to address some of the challenges in the 2019 Amendment Act, the Senate needed to do more to support AMCON’s recovery, as some of the top obligors hide under legal technicalities to tie AMCON in courts.
He noted that some of the obligors are exploring the loopholes in the Act prior to amendment, making the Corporation to witness a slow judicial process including undue adjournment, lack of hearing date, and adequate understanding of the AMCON Act, among other issues.
He said, notwithstanding the pandemic, at the end of Third Quarter (Q3) 2020, the corporation’s Assets Under Management (AUM) amounted to about N136.73 billion, while it has about N112.03 billion worth of proprietary assets.
“AMCON, one of the institutions of the government saddled with the responsibility of revitalising Nigeria’s economy is not immune to this monumental global disaster. The pandemic has impacted negatively on the various sectors of our economy, particularly the sectors, which AMCON is substantially exposed to, like aviation, oil and gas, manufacturing, and retail sectors.
“The continuous rise in inflation and Naira depreciation has also affected the purchasing power of the public thereby affecting obligor’s capacity to repay.”
Noting the untoward hardship caused by COVID-19 on many businesses and the economy at large, Kuru said the Corporation has begun considerations to grant moratorium to deserving obligors that had shown commitment and seriousness towards resolving their indebtedness.