The House of Representatives Committee on Banking and Other Ancillary Institutions has called for the establishment of a judicial task force to expedite the trial of the Asset Management Corporation of Nigeria loan defaulters.
The panel made the call after the Managing Director/CEO of AMCON, Mr Gbenga Alade, said out of the 12,743 loans acquired, only 350 debtors accounted for over 80 per cent of the total purchased accounts, with 246 of them currently embroiled in legal battles with the corporation.
In its response, the committee said the task force would ensure that the 350 debtors fulfilled their financial obligations and contribute to the country’s economic recovery.
The Chairman of the committee, Eze Nwachukwu, stated this on Sunday, during an interview at the ongoing 2024 retreat of the commission with AMCON in Enugu.
He expressed disappointment that 350 Nigerian obligors were withholding collective resources and constraining the nation’s economy.
Nwachukwu stressed the need for urgent action, stating, “We can’t fold our and watch them walk away with our collective resources.
“We have the list of these obligors and will come up with a resolution to address the challenges AMCON faces, including the establishment of a judicial task force to speed up the recovery of debts.”
He questioned why political cases received prioritised attention while economic challenges were left unaddressed.
“If political cases have lifetime attention, why not prioritise our nation’s economic challenges? We can’t continue to sit back and watch these obligors walk away while the country suffers economic hardship.”
Earlier in his address, Nwachukwu said AMCON was established at a time when the nation faced significant economic challenges.
“Over the years, AMCON has made commendable strides in fulfilling its mandate, contributing to the resilience of our banking sector and, by extension, the broader economy.
“However, as we look to the future, we recognise that the economic landscape is evolving rapidly. Global and domestic challenges require us to reassess our strategies and adapt to new realities.
“This retreat presents an opportune moment to reflect on AMCON’s journey so far, to identify areas where we can enhance its capacity, and to align our efforts towards ensuring that the corporation continues to be a key player in our nation’s economic stability,” he said.
Nwachukwu said the theme of the retreat, “Revitalising asset management for economic stability: Exploring policy changes and legislative support for AMCON,” was not only timely but also critically important.
“However, as we look to the future, we recognise that the economic landscape is evolving rapidly. Global and domestic challenges require us to reassess our strategies and adapt to new realities.
“This retreat presents an opportune moment to reflect on AMCON’s journey so far, to identify areas where we can enhance its capacity, and to align our efforts towards ensuring that the corporation continues to be a key player in our nation’s economic stability,” he said.
Nwachukwu said the theme of the retreat, “Revitalising asset management for economic stability: Exploring policy changes and legislative support for AMCON,” was not only timely but also critically important.
On recoveries so far, he noted: “To date, the corporation has made recoveries in the sum of N1.9tn. Of the total recovery, cash recovery represents 43 per cent, sale of four bridged banks 13.3 per cent, sales of proprietary shares 11 per cent, clawback and repurchases 9.5 per cent, asset sales and rentals 9.4 per cent, investment income 7.2 per cent, proprietary assets (unsold) 3.1 per cent proprietary shares (unsold) 3.1 per cent and divestment from portfolio 0.3 per cent.”