AMCON Debt: Reps move to help in debt recovery

The House of Representatives has resolved to help Asset Management Company of Nigeria (AMCON) to recover over N5.4trillion debt.

The House mandated its committees on Banking and Currency, and Insurance to investigate lack of willingness by the debtors to repay the over N5.4trillion debt and to determine the entire debt.

The decisions followed a motion moved by Cornelius Nnaji during plenary on Wednesday, September 25.

Moving the motion, Nnaji said, “Asset Management Corporation of Nigeria (AMCON) was established in 2010 to among other functions, acquire eligible bank assets from eligible financial institutions.

Functions also include 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 the 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 per cent of the N5.4 trillion debt portfolio of the corporation; an amount which is over 50 per cent of the 2018 Budget of Nigeria.”

The Committees also have the mandate to device 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.

A Federal High Court in Lagos, Southwest Nigeria has granted an order of possession of seven choice properties scattered across Lagos Island belonging to a Lagos businessman, Samuel Ademosun and his wife, Toluleke Ademosun to AMCON pending the hearing and determination of the debt recovery suit filed against them.

The properties were alleged to have been used as securities for credit facilities granted by some banks to two companies, Hometrust Saving &Loans Limited and Magna Building Society Limited.

The presiding Judge, Justice Ayotunde Faji, also ordered that nine bank accounts belonging to Ademosun domiciled in two different banks, and four bank accounts of Hometrust Sayings & Loans Limited should also be frozen pending the hearing and determination of the debt recovery suit to be filed by AMCON.

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