November 10, 2016/AMCON
The Chairman of Senate Committee on Banking, Insurance and other Financial Institutions, Senator Rafiu Ibrahim yesterday in Uyo hinted that the time would soon run out on recalcitrant obligors of Asset Management Corporation of Nigeria (AMCON), given the renewed commitment of the Senate to build strategic collaborations that would develop greater capacity for debt recovery and sustained development in the country.
Members of the Senate Committee on Banking, Insurance and other Financial Institutions are in Uyo, the Akwa Ibom State capital for a 3-day retreat to deliberate on the best approaches to be adopted to help the challenged Nigerian economy. The theme of the retreat is: “Economic Rebuilding through Eligible Assets Recovery.” In attendance are the management of AMCON led by Mr. Ahmed Kuru, Managing Director/Chief Executive officer of AMCON among other stakeholders.
Welcoming his colleagues to the retreat in Uyo, Senator Ibrahim who commended the management of AMCON for what he called their renewed drive towards the recovery of the huge debt owed AMCON and the federal government by a few obligors, he stated that the gathering was timely because the entire hallowed upper legislative chamber is fully committed to helping in stabilizing the economy of Nigeria, which is presently challenged. He however said there was no how the Senate Committee would achieve that set objective without collaborating with key institutions of government like AMCON, which he argued carries a huge burden on behalf of the federal government.
According to him, “This retreat for the Senate Committee on Banking, Insurance and other Financial Institutions is in keeping with our commitment to build strategic collaborations in order to develop greater capacity for sustained development. It is my hope that we will fully achieve the objectives of this retreat thereby strengthening the relationship between AMCON, this committee and indeed the entire hallowed upper legislative chamber. It is my expectation that at the end of the day, this committee will have identified new legislative support frameworks for AMCON where necessary, as well as more efficient ways to consolidate on already existing support legislations and frameworks so that AMCON can be strategically positioned to optimally perform its uniquely important responsibility of asset recovery and management, “he said.
The Senator who said the Senate will no longer fold its arm and watch the economy of Nigeria destroyed by a few individuals that have turned themselves into monsters and economic terrorists again stated, “We can all attest to the renewed drive towards a more focused and enhanced assets recovery and management approach under the new dispensation as evidenced by the recent strides of AMCON in recovering eligible assets from debtors. This underscores the important position that AMCON occupies in the nation’s current economic rebuilding effort. AMCON, since its founding, has been a key stabilizing and revitalizing force in the Nigerian financial system and requires vital support from the legislature to achieve its statutory objectives.”
He also reiterated that it is the responsibility of the Senate to support AMCON to succeed and reassured Nigerians that time would soon run out on AMCON obligors especially when the Senate begins the application of its new strategies, which will empower and embolden all agencies of government.
Earlier in his remarks, Managing Director/Chief Executive Officer of AMCON, Mr. Ahmed Kuru, who attended the retreat with the AMCON executive directors and other senior officials of the corporation while describing AMCON as a child of necessity in the development of Nigeria’s financial system, however told the committee that AMCON at this critical time in its existence seriously needed to enlist the support of other critical stakeholders at the highest levels (like the Senate) in order to cover significant ground in the corporation’s recovery mandate.
According to Kuru, AMCON is seeking for support and partnership of the upper legislative chamber because of the frustration from obligors most of who are riding and leveraging the deficiencies in our institutions to hold AMCON and the nation to ransom. Again he stated, “After more than 6 years of operation, all efforts to recover diligently have failed. We now have to resort to the Act setting AMCON up by resorting to the courts…Let me be quick to add here, that AMCON is not trying to unduly prejudice the views or positions of stakeholders, especially the judiciary.
“We are a responsible law abiding organization with respect for the rule of law. However, our campaign is intended to draw attention to the enormity of the challenges and potential threats, which the bad loans in our portfolio pose to the wider economy and the common man…We are mindful of time as AMCON is a corporation with a very short lifespan. Our sunset date of 2013 is drawing nearer each day. In fact, other similar institutions around the world, like Malaysia have wound up their recovery vehicles. They are now focused on managing or turnaround of the assets taken over during the recovery phase,”Kuru submitted.
AMCON was created when the financial system was on the brink of total collapse similar to the one experienced in Europe and North America during the global financial crises of 2008 and 2009. The banks stopped lending, and the economy was shutting down rapidly until AMCON was established as a special intervention and resolution vehicle under the supervision of the Central Bank of Nigeria (CBN) and the Ministry of Finance. The Parliament, in their wisdom, recognized the need for AMCON and in working with the executive established the special resolution vehicle, to be vested with extra ordinary powers in order to achieve its three core objectives of Providing liquidity to the financial institutions by (purchasing the non-performing loans; direct injection of capital by way of financial accommodation); Take over the troubled assets, treat and subsequently dispose them for good returns; and Support the businesses where possible.
