The House of Representatives Committee on Banking and Other Ancillary Institutions has called for the establishment of a judicial task force to expedite the trial of the Asset Management Corporation of Nigeria loan defaulters.
The panel took this decision after AMCON’s Managing Director and CEO, Gbenga Alade, stated that only 350 creditors made up more than 80% of all accounts purchased out of 12,743 loans, and that 246 of those debtors were presently involved in litigation with the company.
In response, the committee stated that the task force would guarantee that the 350 debtors paid their debts and support the nation’s economic recovery.
The committee chairman Eze Nwachukwu made this statement During an interview with AMCON on Sunday during the commission’s ongoing 2024 retreat in Enugu.
He expressed dissatisfaction over the 350 Nigerian debtors’ combined withholding of resources and restraint on the country’s economy.
In order to emphasize the urgency of the situation, Nwachukwu said, “We cannot fold our hands and watch them walk away with our collective resources.”
“We will develop a resolution to address the issues AMCON is facing, including the creation of a judicial task force to expedite the recovery of debts. We have the list of these obligors.”
He questioned why political cases received prioritised attention while economic challenges were left unaddressed.
“If political cases have lifetime attention, why not prioritise our nation’s economic challenges? We can’t continue to sit back and watch these obligors walk away while the country suffers economic hardship.”
Earlier in his address, Nwachukwu said AMCON was established at a time when the nation faced significant economic challenges.
Nwachukwu said the theme of the retreat, “Revitalising asset management for economic stability: Exploring policy changes and legislative support for AMCON,” was not only timely but also critically important.
“Managing distressed assets is a challenging task that demands strong policies, creative solutions, and resolute legislative support,” he stated.
In this case, revitalization entails a complete rethinking of the framework that AMCON functions inside, rather than merely enhancing current procedures. It asks for tactical changes that will allow AMCON to intervene more quickly, proactively, and effectively.
Speaking earlier, Alade stated that the company was attempting to collect loans that it had bought from bank borrowers by way of 1,865 court lawsuits spanning the Federal High Court to the Supreme Court.
He expressed frustration that debtors often exploited legal loopholes to prolong court cases.
Despite the challenges, the AMCON boss, represented by Lucky Adaghe at the event, said the corporation had contributed 34 per cent to the funding plan as of December 2023, with the remaining 66 per cent coming from cash redemptions, bond sinking funds, and contributions from banks and the Central Bank of Nigeria.
