A bill seeking to strengthen the powers of the Asset Management Corporation of Nigeria, AMCON, to recover bad loans taken from commercial banks has been stepped down by the House of Representatives.
The bill was stepped down Wednesday amid reservations by lawmakers following what they described as possible abuse of powers in the future by the AMCON.
The bill which originated from the Nigerian Senate empowers the AMCON to take possession, manage, or sell all properties traced to debtors, whether or not such assets or properties have been used as collateral in obtaining the loans.
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Some lawmakers, however, strongly kicked against this part of the bill, noting that the agency might misuse such authority.
The bill amongst other things gives the recovery firm the power to take bad debtors to special credit tribunals to recover debts so as to eliminate hitches often experienced in the normal regular courts.
The Senate had on April 28 passed the amendments to the AMCON Act.
(Editor: Abaje Usekwe)
