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Senate panel justifies continued existence of AMCON despite challenges
The existence of the Asset Management Corporation of Nigeria (AMCON) despite the challenges confronting it is not misplaced, Senate panel on Banking, Insurance and Other Financial Institutions has stated.
AMCON is vested with the statutory responsibility amongst others, of recovering the non-performing loan hitherto disbursed by eligible financial institutions (banks) to their customers.
The Managing Director of the agency, Ahmed Kuru on wednesday led top officials of the agency to the Senate on to present his 2023 financial records and to defend the 2024 budget estimates.
Some lawmakers in the Senate panel had expressed dissatisfaction with the agency’s performance in the outgoing fiscal year wondering if it would not be better for the National Assembly to scrap it.
Senator Sani Musa, who is a member of the committee had expressed dismay that despite its huge liabilities, AMCON was not aggressive enough in its loan recovery drives.
He said, “Most of the loans were owed by individual companies which were never sanctioned and at the end of the day, the same company would go back to buy back their asset that AMCON had hitherto taken over. Are we going to continue like this?
“It is not only about defending budget, it is about seeing the effect of the Appropriation, we need to know whether it is working. Or are we just creating a job for those we can protect?
“Will it not be better to scrap AMCON since it seems to have lost its statutory mandate?
Speaking from the same perspective another member of the committee, Senator Jimoh Ibrahim, lamented the huge losses suffered by the assets recovery agency in the outgoing fiscal year.
Ibrahim said, “Your total comprehensive profit and loss, and it came in to a loss of N145bn. This calls for concern.
“Your net operating profit and loss is N126bn. What is responsible for all these big losses. You are created to collect bank loans from them.
“Even if you’re now regulators to the debtors, why are you incurring losses. Your balance sheet is not looking so good. Again, why are you buying cash-colateralised loans?”
Attempts by the Chairman of the Senate Committee, Senator Tokunbo Abiru, to defend the agency’s submissions did not go down well with some members and the panel had to dissolve into a closed session.
After about 30 minutes, the doors of the committee room were thrown open and Abiru addressed journalist on the outcome of the executive session.
Abiru said, “The committee has agreed that there is the need for a strong financial system stability hence agencies like AMCON is still desirable.
“We also believe that the role of AMCON is further underscored by the fact that it was set up using a model that it would help us to tidy up the challenges that we had in the financial system in the past.
“The only challenge that we had today is that we need to have a definite time that all the obligations that are hanging on the throat of AMCON must be redeemed.
“The conclusion is that we will continue to work with AMCON and other agencies to fashion out a model that would make AMCON openly wound down it’s obligation at the possible shortest time.
“There is no society that does not have AMCON in one form or the other. The only way we can resolve financial stability is through the creation of an entity like this and we need to ensure it’s success,” Abiru added.
Kuru told the panel that his administration had been able to recover about N648bn out of the agency’s total liabilities of N5trn as of 20th September, 2023.
Former Director-General of the National Broadcasting Commission (NBC), Professor Tom Adaba, has passed away at the age of 84.
According to reports, he died peacefully on Saturday in Abuja.
Chief Adinoyi Joe Anivasa, Secretary of the Egbira Elders Forum, confirmed the news, stating, “I feel sad to inform you that our elder and leader, Prof. Tom A. Adaba, has answered the call of nature this morning. Further details about his burial arrangements will be communicated later.”
Born on July 2, 1941, Prof. Adaba made significant contributions to Nigeria’s broadcasting industry. Between 1988 and 1992, he became the first Nigerian to serve as President of the African Council for Communication Education.
Despite calls for suspension from the Attorney General of the Federation (AGF) and the Nigeria Police Force, the Osun State local government election proceeded as scheduled on Saturday.
Governor Ademola Adeleke voted in Ede North Local Government Area, describing the process as peaceful and urging residents to exercise their franchise.
The AGF, Lateef Fagbemi, cited a Court of Appeal ruling allegedly reinstating sacked local government chairmen, while the police warned of potential security threats.
However, the Osun State government insisted on holding the election, emphasizing its commitment to obeying a court directive. The opposition All Progressives Congress (APC) boycotted the polls.
Voting took place under tight security, with minimal commercial activity observed in Osogbo, the state capital.
A chieftain of the All Progressives Congress (APC) and former Commissioner for Information, Jonathan Vatsa, has indicated that Firmer President Muhammadu Buhari’s absence at the public presentation of former military ruler General Ibrahim Babangida’s autobiography, The Journey of Service, held in Abuja on Thursday was not surprising.
Speaking to journalists in Minna on Saturday, Vatsa suggested that Buhari’s no-show was a result of unresolved bitterness over the 1985 coup, in which Babangida overthrew him and subsequently detained him.
According to Vatsa, Buhari may still harbor resentment, especially over being denied the chance to bid his late mother farewell while in detention.
“It Would Have Been the 9th Wonder of the World If Buhari Had Attended”
Vatsa claimed that Buhari’s absence was expected, given the deep-seated history between the two former leaders.
“The memory of the ‘mother of all betrayals’ has not left him. It would have been the ninth wonder of the world if Buhari had attended that book launch,” he said.
The APC chieftain also linked Buhari’s perceived neglect of Niger State during his eight-year presidency to his history with Babangida.
“The whole world knows that Niger State was made a scapegoat by Buhari because of IBB. For eight years, he did not pay any serious official visit to the state, and not a single federal project was executed here. The Baro Port project was abandoned, and federal roads across the state were left in disrepair,” Vatsa alleged.
He claimed that despite the overwhelming votes Buhari received from Niger State in 2015 and 2019, the state was sidelined due to the personal history between the former presidents.
“When two elephants fight, it is the grass that suffers. Niger State paid for the sin of one man,” he lamented.
When asked for his opinion on the contents of IBB’s autobiography, Vatsa said he would reserve his comments until he has read and digested the book fully.
“There are certain things I expected to see in the book. Once I am done reading, I will invite you all for my comments,” he stated.
The book launch attracted several high-profile attendees, including President Bola Tinubu, former presidents Olusegun Obasanjo, Goodluck Jonathan, and Yakubu Gowon, as well as former military head of state Abdulsalami Abubakar.
Other dignitaries included former Ghanaian President Akufo-Addo, former Sierra Leonean President Ernest Koroma, and ex-vice presidents Atiku Abubakar, Yemi Osinbajo, and Namadi Sambo, alongside traditional rulers and state governors.
Buhari’s absence, however, remained a major talking point, reinforcing speculations that the 1985 coup remains a sore point in Nigeria’s political history.
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