By Elizabeth Adegbesan

THE Managing Director/Chief Executive Officer of Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru, has proposed the formation of a Special Purpose Vehicle (SPV) to assume the outstanding debt assets of the Corporation at the expiration of its sunset period in 2024.

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Kuru stated this while addressing members of the House of Representatives Committee on Banking and Currency at a retreat in Lagos.

Speaking on steps taken by the Corporation in preparation for its sunset period, Kuru said: “The management is already working with Ernst & Young as financial advisers to see what we need to do, how we need to work with the Nigerian Insurance Deposit Corporation (NDIC) and the Central Bank of Nigeria (CBN) to tinker things a little and then at certain point in time liaising with the National Assembly draw a line.

“My suggestion will be to put all the remaining debt in one vehicle and fling the vehicle to anybody or firm that wants to buy with considerable discount. At that stage maybe it would be wise to do that and then close AMCON. There are funds all over the world that are in search of such opportunity. Then the contributions into the sinking fund from the banks, NDIC and CBN would over the period of two or three years depending on how the rates are adjusted be gradually cleared.”

Kuru challenged the lawmakers to consolidate on the gains of the previous National Assembly, stressing it is in the interest of the Nigerian economy to recover the debt because the Corporation was not established as a charity organisation.

Also addressing the retreat, the Chairman, House Committee on Banking and Currency,  Hon. Victor Nwokolo assured that the ninth National Assembly would take all necessary measures that would support the AMCON in realizing the huge outstanding debt of over N5.4 trillion owed it by obligors before its sunset.

Recall that AMCON with the assistance of the eighth National Assembly successfully amended the AMCON Act, which President Muhammadu Buhari signed into law earlier in the year. The amended Act further provided AMCON with additional powers to deal with the obligors.

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Nwokolo affirmed that since government is a continuum, the National Assembly through the committee, which has oversight mandate over AMCON would work to ensure that AMCON not only performs its function satisfactorily, but ensures that the corporation delivers on its expected mandate given that AMCON is a creation of the parliament in 2010.

While commending the previous leadership of the Legislature, the management of AMCON under the leadership of Kuru, and the executive arm of government for amending the AMCON Act, the Chairman said the National Assembly will indeed continue to amend the Act until the federal government achieves that target for which AMCON was created in the first place, which is to stabilize the financial sector.

Vanguard