Lawmakers rally behind AMCON’s debt recovery drive

*From left: Mr Najib Sulaiman, Head of Strategy AMCON; Mr Joshua Ikioda, Group Head of Enforcement, AMCON; Mr Lucky Adaghe, Executive Director of Operations, AMCON and the Chairman, House of Representatives Committee on Banking & Ancillary Institutions, Honourable Eze Nwachukwu Eze during the retreat

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Lawmakers have thrown their weight behind the Asset Management Corporation of Nigeria (AMCON) in its ongoing battle to recover nearly N5 trillion in debts in a decisive move to support the economic agenda of President Bola Tinubu’s administration. The renewed call for action, spearheaded by Honourable Eze Nwachukwu Eze, Chairman of the House of Representatives Committee on Banking and Ancillary Institutions, signals a significant shift in strategy towards a more aggressive debt recovery approach.

According to a statement, while speaking at a weekend retreat in Enugu, Honourable Eze emphasised the importance of recovering the enormous debt owed to AMCON, stressing that such efforts are crucial for bolstering the nation’s revenue and fulfilling the promises of the Tinubu administration. “The recovery of such humongous amounts owed AMCON by a few obligors will increase the revenue of President Bola Ahmed Tinubu’s government and enable the government to deliver the renewed hope Mr. President promised Nigerians,” Eze stated.

The lawmaker urged AMCON, under the leadership of Managing Director Mr. Gbenga Alade, to adopt a more ruthless approach in its debt recovery efforts, regardless of the social or economic standing of the debtors involved. “The new AMCON management has to face the reality of debt recovery, which is not easy, and must not consider social status of obligors in carrying out enforcement actions,” Eze declared, underscoring the need for a united front among all government agencies in supporting AMCON’s mandate.

Eze’s remarks highlight the broader economic implications of AMCON’s debt recovery mission. He noted that the task of managing distressed assets is complex, requiring not only robust policies and innovative approaches but also unwavering legislative backing. The theme of the retreat, “Revitalising Asset Management for Economic Stability: Exploring Policy Changes and Legislative Support for AMCON,” encapsulates the urgency of this mission.

Reflecting on the economic challenges facing the nation, Eze acknowledged the rapidly evolving global and domestic landscape, which necessitates a reassessment of strategies. “Retreats such as this present us with another opportunity 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.

The retreat, which ran from August 16 to 18, also featured key insights from AMCON officials, who outlined the difficulties encountered in the debt recovery process. Mr. Lucky Adaghe, Executive Director of Operations, who represented the AMCON MD/CEO, urged continued legislative support, particularly in light of the economic reforms currently being implemented by the government. These reforms, including the removal of fuel subsidies and the unification of foreign currency exchange rates, are expected to have a positive impact on debt recovery efforts.

However, Adaghe also pointed out the challenges posed by legal technicalities and the bureaucratic delays that have hampered AMCON’s operations. “Even though the AMCON Act has gone through three amendments over the years, the obligors have mastered the operations of AMCON and have been taking advantage of the Court processes to frustrate AMCON,” Adaghe noted, calling for the full activation of the special provisions of the AMCON Act.

To overcome these obstacles, AMCON officials have proposed several measures, including the designation of specific AMCON Judges in Federal High Court complexes across the country, accelerated hearings, and the granting of judgments on AMCON matters within 90 days. These steps, they argue, are necessary to ensure that AMCON can effectively carry out its mandate and contribute to the nation’s economic stability.

As the retreat concluded, there was a clear consensus among participants that AMCON’s success in recovering debts is vital for the country’s economic future. The lawmakers’ commitment to providing the necessary legislative support marks a significant step towards ensuring that AMCON remains a pivotal force in Nigeria’s financial recovery and growth.

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