The Senate on Tuesday considered a bill seeking to empower the Asset Management Corporation of Nigeria (AMCON) in the aspect of assets recovery, as well as strengthen it against economic sabotage by debtors with unpaid loans to the tune of about N16 trillion naira.
The AMCON Amendment Bill 2021, which scaled the second reading on the floor, was sponsored by Senator Michael Opeyemi Bamidele (APC, Ekiti Central).
Leading a debate on the bill, Bamidele said, “the main aim of the proposed amendment is to update a few clauses in the Act that have been hampering the Operations of the Asset Management Corporation of Nigeria.”
According to him, “under the current Act, the continued smooth operation of AMCON is threatened by the tenor put on a key funding provision for AMCON.”
“Therefore, the proposed amendment is designed to allow for more flexibility in the tenor of this key funding provision.”
Bamidele further stressed that the amendment would strengthen AMCON in stabilizing Nigeria’s banking sector and empower the agency in carrying out its functions of assets and debt recovery.
He said, “Mr President, Distinguished Colleagues, AMCON is a very important and strategic national institution that must be strengthened to effectively contribute to the stabilization of the banking sector in Nigeria.
Contributing, Senator Uba Sani (APC, Kaduna Central) said that, “AMCON largely depends on resources from the resolution fund, and failure to extend this amendment bill will certainly affect the operation of AMCON, and it may force the government to bear the entire cost of debt management of AMCON.”