Senate panel screens AMCON chair, asks corporation to prepare report ahead of wind-down

Nigeria's Senate Committee on Banking, Insurance and Other Financial Institutions has instructed the Asset Management Corporation of Nigeria (AMCON) to compile a comprehensive report detailing its operations ahead of its scheduled wind-down in 2030. The report is intended to outline AMCON's accomplishments and remaining obligations since its inception.

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The issue I wish to raise is that AMCON was established to resolve challenges within the financial system, particularly non-performing loans, distressed banks and related financial obligations.

The directive was issued during the screening of Lamido Yuguda, a former deputy governor of the Central Bank of Nigeria, for the position of AMCON board chairman. The committee, chaired by Adetokunbo Abiru, subsequently cleared Yuguda's nomination. Senator Sani Musa had initially called for the detailed report, emphasizing the need to understand AMCON's status, achievements, and unresolved liabilities before its statutory end.

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It has a statutory lifespan and is expected to wind up around 2030. Looking at that timeline, there is a need for this committee to receive an up-to-date report on the status of AMCON.

Musa explained that AMCON was created to address non-performing loans, distressed banks, and other financial sector liabilities. "We need to know where the corporation stands today, what it has achieved since inception and what outstanding responsibilities remain before its expected sunset," he stated. Chairman Abiru expressed confidence that AMCON, under Yuguda's potential leadership, would address these concerns seriously and directed the nominee and AMCON Managing Director Gbenga Alade to prepare the report.

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We need to know where the corporation stands today, what it has achieved since inception and what outstanding responsibilities remain before its expected sunset.

Established in 2010 under the AMCON Act, the "bad bank" was a federal government initiative to manage the fallout from the 2008 global financial crisis. It was tasked with purchasing toxic assets from commercial banks and recapitalizing struggling financial institutions to prevent a systemic collapse of Nigeria's financial system.

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I have no doubt that, in the not-too-distant future, the committee will receive a comprehensive response on the issues you have highlighted.