Reps to probe AMCON’s failure to liquidate N2.47trn debt

The Nigerian House of Representatives is to probe the failure of the Assets Management Corporation of Nigeria, AMCON, to liquidate  a 2.47 trillion naira debt.

The lawmakers are even more disturbed that 1.2 trillion naira of the debt is owed by 20  individuals who walk the streets freely.

The 2007 to 2009 global financial meltdown necessitated the establishment of AMCON.

AMCON is designed to be an intervention agency which provides  stabilisation capital to eligible financial institutions and acquires eligible bank assets.

To set the corporation going, the Nigerian government through the Central Bank provided an initial capital and a three year  “zero coupon Federal Government guaranteed”  bond that enabled AMCON raise 5.67 trillion naira for the Intervention.

But more than six years after, the corporation is yet to recover 2.47 billion naira from the bank debtors and has been unable to redeem the bond acquired.

The legislators say the debt , if recovered, will come in handy, particularly with the prevailing recession in the country

The House says the 20 people owing about 1.2 trillion of the 2.47 trillion naira debt must be investigated.

A joint House committee involving that of Loans, Aids and Debt Management as well as  that of Banking and Currency is mandated to hit the ground running and report its findings in the next one month.

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