AMCON Must Uphold Transparency and Efficiency in Debt Recovery

Samuel Mobolaji

Following the recent change in executive leadership at the Asset Management Corporation of Nigeria (AMCON) by President Bola Ahmed Tinubu, the House of Representatives has called for continued innovation, best practices, transparency, accountability, and efficiency in asset recovery and management.

The corporation is currently led by Gbenga Alade as Managing Director and Chief Executive Officer.

During an oversight visit to AMCON’s corporate head office on Tuesday, Hon. Eze Nwachukwu Eze, Chairman of the House of Representatives Committee on Banking and Other Ancillary Institutions, emphasized the importance of these principles. This visit marked the first oversight by the Eze-led committee since the new AMCON executive assumed office in February.

Hon. Eze stressed that maintaining transparency, accountability, and efficiency in AMCON’s operations is crucial for effective debt recovery. The committee members are committed to supporting AMCON through appropriate legislative frameworks and oversight functions.

“AMCON cannot achieve its mandate in isolation. Collaboration with the National Assembly, other financial institutions, regulatory bodies, and stakeholders is crucial,” said Hon. Eze. “We are committed to fostering an enabling environment that supports AMCON’s efforts and promotes the stability and growth of our financial system.”

Hon. Eze highlighted the critical role of AMCON in the current economic landscape, which is marked by global uncertainties and domestic challenges. He noted that resolving non-performing loans, recovering debts, and managing acquired assets are essential for the stability and resilience of the banking sector. AMCON must adopt innovative strategies and leverage technology to enhance its operations.

Since its inception, AMCON has played a pivotal role in stabilizing the Nigerian financial system, particularly following the 2009 global economic crisis. Hon. Eze acknowledged the significant strides made by AMCON in fulfilling its mandate and emphasized the importance of ensuring that AMCON operates within the legal framework established by the National Assembly.

In his welcome remarks, AMCON MD/CEO Gbenga Alade, along with Executive Directors Dr Aminu Mukhtar Dan’amu and Mr Adeshola Lamidi, highlighted the corporation’s progress despite a challenging start. Alade noted that with the support of the National Assembly, AMCON has made considerable recoveries.

“To date, the corporation has made recoveries totalling N1.960 trillion,” Alade said. “Of the total recovery, cash recovery represents 43 per cent, sale of bridged banks 13 per cent, sale of proprietary shares 11 per cent, clawback and repurchases nine per cent, sale of property assets and rentals nine per cent, investment income seven per cent, while others represent about seven per cent.”

The visit aimed to ensure that AMCON continues to operate effectively and efficiently, fulfilling its objectives within the legal framework.