Senate passes amended AMCON bill, empowers corporation to seize debtors’ assets

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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.

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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.

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.

He said, “The essence of collateral, is that in the event of default, you lose that asset. What I am reading here is that in addition to seizing that asset, they (AMCON) want to go beyond that to every other asset or property that is traceable to the debtor. I think I need some clarifications on that.”

After much deliberation by the lawmakers, the bill was finally passed by the Senate leadership.