N2.473t Debt: Reps Mandate Committee To Investigate AMCON

N2.473t Debt: Reps Mandate Committee To Investigate AMCON
The House of Representatives on Thursda mandated its Committee on Banking and Currency to investigate Asset Management Company of Nigeria (AMCON), over its inability to recover N2,473,248,084,522,73 trillion from Obligos/banks debtors.

The call was sequel to a motion under matter of national importance, titled “call for the investigation of Asset Management Company of Nigeria (AMCON) Obligos over the non liquidation of N2,473,248,084,522,73,” sponsored by Hon. Johnbull Shekarau.

Moving the motion, the lawmaker noted that AMCON was established by law to respond to the 2007-2009 global financial crisis as an intervention agency to provide stabilisation capital to eligible financial institution and acquire eligible bank assets.

Shekarau explained that federal government through the Ministry of Finance and the Central Bank of Nigeria (CBN) provide initial capital and a three years zero coupon government guaranteed bond to allow AMCON raise N5.67 trillion for the intervention.

The lawmaker expressed worry that six years after, AMCON is yet to recover the N2.473 trillion from Obligos/bank debtors to enable her redeem the three years zero coupon bond she require.

He noted that the inability to recover the money “has serious implication on the economy especially now that it is in recession.”

The House, has, however mandated its committee on Banking and Currency to investigate the failure of obligos/bank debtors to liquidate their loans in order to enable AMCON redeem the three years zero coupon bond she raise and to report back to it within four weeks.

Meanwhile, the House yesterday urged the Inspector General of Police to crack down on any person found hawking or selling naira notes.

The motion which was moved by Honorable Anayo Nnebe was unanimously adopted by the House.

Moving the motion, Nnebe expressed concern over the practice of hawking of crisp naira notes during public functions, weddings and other social gatherings in major parts of the country.

He observed that the trend has continued, despite the unavailability of crisp naira notes in several banks in the country.

The lawmaker pointed out that, not
only is the development against global best practices, it also offends the Laws of the Federation of Nigeria (2004) which makes it a punishable offence for any one to trade naira notes.

The House therefore mandated it’s committee on Banking and Currency and Police affairs to interface with the Governor of the Central Bank of Nigeria (CBN) and the IGP to end the practice and report back to it within six weeks.