House of Representatives Committee, Banking, CBN, Nigeria, AMCON, Asset Management Corporation of Nigeria, Banks
Central Bank of Nigeria

The House of Representatives Committee on Banking and Currency wants the Central Bank of Nigeria to stop the collection of interest from the Asset Management Corporation of Nigeria, AMCON.

The Committee said this at its annual retreat with AMCON, it also expressed worry over the rising Debt profile of AMCON which it fears will be a huge problem by 2023.

The fundamental objective of the establishment of the Asset Management Corporation of Nigeria, AMCON, was to rescue commercial Banks in Nigeria from the brink of collapse as was the case with many Banks during the global financial crisis of 2008.

This is to be achieved through acquisition of non-performing loans, and to dispose off underlying assets in the most profitable way. The committee is however worried about the collection of interest from AMCON by the Central Bank of Nigeria saying it is not sustainable as AMCON is not a profit making organization.

The management of AMCON outlined the challenges facing the corporation which ranges from the disposal of assets due to economic downturn amongst others and stressed the need to revisit the AMCON act which governs its operations.

The lawmakers promised to address the many challenges facing AMCON, stressing the need to use the instrument of law to address the 6% interest currently levied on AMCON.

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