The House of Representatives today in Abuja charged the Asset Management Corporation of Nigeria (AMCON), which is currently led by Gbenga Alade as Managing Director/CEO, to continue to innovate and adopt best practices in asset recovery, management, transparency, accountability, and efficiency in the quest to recover the total outstanding debt of nearly N5 trillion owed AMCON by some obligors. This comes after President Bola Ahmed Tinubu GCFR changed the Executive leadership of the Corporation.
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The House Committee on Banking and Other Ancillary Institutions’ Chairman, Hon. Eze Nwachukwu Eze, made this announcement earlier on Tuesday at AMCON’s Corporate Head office while leading the House Committee on its oversight visit for 2024. This is the Honorable Eze-led Committee’s first oversight visit to the Corporation since the new AMCON EXCO assumed office in February.
The Chairman stated that as long as accountability, transparency, and efficiency continue to be the pillars of AMCON’s operations, the committee members will be dedicated to offering the support required by way of suitable legislative frameworks and oversight responsibilities to guarantee AMCON successfully carries out its recovery mandate.
Again Hon. Eze added, “Moreover, we recognize that AMCON cannot achieve its mandate in isolation. Collaboration with the National Assembly, which this Committee represents, other financial institutions, regulatory bodies, and other stakeholders is crucial. As representatives of the people, we are committed to fostering an enabling environment that supports AMCON’s efforts and promotes the stability and growth of our financial system.”
“As we navigate through the current economic landscape, marked by global uncertainties, and domestic challenges, the role of AMCON becomes even more critical. Resolving non-performing loans, recovering debts, and managing acquired assets are key to ensuring the stability and resilience of our banking sector. It is essential that AMCON remains steadfast in its mission, adopting innovative strategies and leveraging technology to enhance its operations.”
“AMCON, since its inception, has played a pivotal role in stabilizing the Nigerian financial system. In the aftermath of the 2009 global economic crisis, AMCON was established to address the non-performing loan crisis that threatened the stability of our banking sector. Today, as we reflect on the journey thus far, we acknowledge the significant strides made by AMCON in fulfilling its mandate. This visit aims to ensure that AMCON operates within the legal framework established by the National Assembly and achieves its objectives effectively and efficiently.”
He went on to say that the visit to AMCON is a part of their legislative duties, which are outlined in Order 21(2) of the House Standing Orders, Eleventh Edition (as amended), which placed AMCON under the Committee’s oversight, and Sections 62, 88, and 89 of the Federal Republic of Nigeria 1999 (as amended), which give the National Assembly the authority to oversee all Government Ministries, Departments, Agencies (MDAs), and Government owned Enterprises (GoEs) for the prudent use of public funds. The AMCON MD/CEO, who welcomed the Committee and introduced his Executive Directors, Dr. Aminu Mukhtar Dan’amu and Mr. Adeshola Lamidi, together with other senior employees of the Corporation, earlier in his remarks, informed the Committee that in spite of the unsteady start-off model, the Corporation, with the backing of the National Assembly, has made considerable recoveries
Alade said, “To date, the Corporation has made recoveries in the sum of N1.960 trillion. Of the total recovery, cash recovery represents 43%, sale of bridged banks 13%, sale of proprietary shares 11%, clawback & repurchases 9%, sale of property assets & rentals 9%, investment income 7%, while others represent about 7%.”
The AMCON leader, who walked the members through the events leading up to the organization’s founding and the numerous legal disputes the company has faced, said that, since its founding, AMCON had sold off proprietary assets valued at approximately N651 billion. Furthermore, according to Alade, the Corporation has paid back N2.929 trillion to the Central Bank of Nigeria (CBN) in total between 2013 and 2023. This amount naturally includes AMCON recoveries as well as payments made to the Sinking Fund by other Deposit Money Banks (DMBs).
