Reps Demand Trial of 350 AMCON Loan Defaulters

The House of Representatives Committee saddled with the responsibility on Banking and Other Ancillary Institutions has called for the establishment of a judicial task force to take a legal stand against the Asset Management Corporation of Nigeria loan defaulters.

The panel made the resolution 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.

Responding, the committee said the task force would ensure that the 350 debtors fulfil 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 committee with AMCON in Enugu.

He expressed sadness over the 350 Nigerian obligors withholding collective resources and constraining the nation’s economy.

Nwachukwu stressed the need for urgent action, stating, “We can’t fold our arms 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.

"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.

He noted, “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."

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.

He further said, “The task of managing distressed assets is complex, requiring robust policies, innovative approaches, and unwavering legislative backing.

"Despite the challenges, the AMCON boss, represented by Mr Lucky Adaghe at the event, said the corporation had contributed 34 per cent to the funding plan as of December 2023, with the remaining 66 per cent coming from cash redemptions, bond sinking funds, and contributions from banks and the Central Bank of Nigeria.

“Out of the 12,743 loans purchased, only 350 obligors constitute more than 80 per cent of the total purchased accounts. Out of the 350 obligors, about 246 are in various courts with us. This has continued to pose a major recovery challenge to the corporation.

“Obligors hide under legal technicalities to tie AMCON in courts, exploring the loopholes in the statutes and the legal system.”