Members of Senate Committee on Banking, Insurance and other financial Institutions on Wednesday queried the management of Assets Management cooperation of Nigeria (AMCON) over poor performance shown in the company ‘s balance sheet with some of them calling for the scrap of the government agency.
The lawmakers lamented the loss of N146 billion the corporation recorded in its operation within the period of 12 months, a development, which members of the committee say calls for concern
This was revealed on Wednesday during the 2024 budget defence before the Senate Committee on Banking, Insurance and other Financial Institutions
Some of the Senators are also not satisfied with the liquidity of some of the entities taken over by AMCON including Ibadan electricity distribution company, alleging that the management continues to give out bad loans and allowing seized companies to buy back their assets.
Other lawmakers say the Recovery agency which has been in existence for over 13 years has performed poorly
Asset Management Corporation of Nigeria (AMCON) was established by an Act of the National Assembly in July 2010 with a lifespan of 10 years
The validity was however extended with a new date for AMCON to wind down in 2025
The senators further questioned the Company why it is buying cash collateralized loans.
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In his response the managing Director and chief Executive officer of AMCON Ahmed Kuru
Says If Amcon was not created, more than 21 banks would have Liquidated , more than 3000 jobs would have been at risk, and N2 trillion at that time would have been at risk.
He added that out of the 1.8 trillion that was used to purchase Loan, AMCON has recovered 96% of that, a feat he says should make the institution the best in the world
He stressed that the recovery rate is poor as a result of the interest element
The chairman senate committee on banking Tokunbo Abiru in his remarks says the National assembly will work to ensure there is a definitive time to wide down AMCON, and all obligations that are hanging in the books of agency must be redeemed
He assured that the National Assembly will
work with AMCON and apex agencies in order to fashion out ways to wind down within the shortest period of time
The concluding part of the budget meeting between the Federal Lawmakers and AMCON held behind closed doors.
(Editor : Ena Agbanoma)
