Senate okays seizure of debtors’ assets, passes amended AMCON bill

The Senate, on Wednesday, passed the Asset Management Corporation of Nigeria Amendment bill.

The passage of the bill followed the consideration of a report by the Committee on Banking, Insurance, and Other Financial Institutions.

The amendment bill passed by the chamber empowers the Assets Management Corporation of Nigeria to, amongst others, take possession, manage or sell all properties traced to debtors, whether or not such assets or property is used as security/collateral for obtaining the loan in particular.

It also empowers the corporation to access the Special Tribunal established by the BOFIA, 2020 for dealing with financial related matters.

Chairman of the Committee, Senator Uba Sani (APC, Kaduna Central), in his presentation said the Committee engaged with stakeholders such as AMCON, Federal Ministry of Finance, Budget and National Planning; Central Bank of Nigeria; and Nigeria Deposit Insurance Corporation.

According to the lawmaker, the stakeholders in their submissions pushed for AMCON to be empowered to take possession, manage, foreclose or sell, transfer, assign or otherwise of property used as security for eligible bank assets among others, adding that, “this will provide for a quicker, easier and legitimate process of assets disposal.”

The Deputy Senate President, Ovie Omo-Agege (APC, Delta Central), during the clause-by-clause consideration of the bill sought to know the rationale behind the recommendation of the Committee in clause two, which empowers AMCON to take possession of assets outside of those used as collateral in obtaining a loan request. Punch