The Senate, on Wednesday, passed the Asset Management Corporation of Nigeria (AMCON) Amendment Bill, which among other things empowers it to take possession, manage or sell all properties traced to debtors, whether or not such assets or property is used as security/collateral for obtaining the loan in particular.
The passage of the bill followed the consideration of a report by the Senate Committee on banking, insurance and other financial institutions.
It also empowers the corporation to access the Special Tribunal established by the BOFIA, 2020 for dealing with financial related matters.
Chairman of the Senate Committee, Uba Sani (APC, Kaduna Central), in his presentation said the committee engaged with stakeholders such as AMCON, Federal Ministry of Finance, Budget and National Planning; Central Bank of Nigeria; and Nigeria Deposit Insurance Corporation (NDIC).
According to the lawmaker, the stakeholders in their submissions pushed for AMCON to be empowered to take possession, manage, foreclose or sell, transfer, assign or otherwise of property used as security for eligible bank assets among others, adding that, “this will provide for a quicker, easier and legitimate process of assets disposal.”
The deputy Senate president, Ovie Omo-Agege (APC, Delta Central), during the clause-by-clause consideration of the bill sought to know the rationale behind the recommendation of the committee in clause two, which empowers AMCON to take possession of assets outside of those used as collateral in obtaining a loan request.
He said, “The essence of collateral is that in the event of default, you lose that asset. What I am reading here is that in addition to seizing that asset, they (AMCON) want to go beyond that to every other asset or property that is traceable to the debtor. I think I need some clarifications to that.”
Another senator, Bassey Albert Akpan (PDP, Akwa-Ibom North East) argued that “you cannot go outside the asset presented for the facility.”
But after the passage of the bill, Bassey Akpan and Chukwuka Utazi, while relying on a Point of Order put forward by the former, contested the ruling of the Senate president, Ahmed Lawan by requesting for a division.
Interjecting, the Senate president said, “when we come to legislate, we all come here with very clear mind, that we are doing this for our country, we don’t have any interest but the national interest.
“Let the people go to court to test it, but our hope and desire is for AMCON to be able to recover huge sums of money – trillions that people have taken and now is on the head of Nigerians. And, it is criminal, really. People will consciously take money. I will advise that we stick to our decision,” Lawan stressed.
Bala Ibn Na’Allah (APC, Kebbi South) and Opeyemi Bamidele (APC, Ekiti Central), advocated for the inclusion of a proviso amid the AMCON amendment, so as to give it precedence over any other law that may be used to cite an instance of conflict.
Source: Business Day
