AMCON: Of its legal teeths, living up to expectations of Nigeria to better economy
By Abubakar Yusuf
Unlike in the 90s or before then, the Central Bank Of Nigeria CBN held a big stick of instilling sanity in the financial sector that consists of Banks and other financial institutions.
But since the inception of the Asset Management Corporation of Nigeria, AMCON in the 2000, the Apex Bank redirects the mandate of loan recovery, financial controls, avoided profligacy, due diligence as the primacy of a new regulatory body and a new Sherrif in town, charged with overseeing the financial transactions of individual Nigerians interms of availement, advances from Banks and other financial institutions.
The positive developement of the conception of the new body brought a huge relief to the financial institutions that battled with unserviceable loans, recovery, concealed advances, suppressed availement and many other round trippings, abuses from button to the top echelons of Banks and financial institutions.
The situation was taking a dangerous dimensions that led to the intervention of the new body, AMCON annexed all forms of borrowings hitherto known as ‘Bad Loans’ but being recircled from time to time as a recurring decimals between Banks and financial institutions and its borrowers.
The coming of AMCON no doubt exposed the unbreakable jinx of Banks and financial institutions that had brought transparency and sanity in recent times to the sector.
Since the activities of the sector has multiplier effects on the economy and social sectors in Nigeria, aside enriched the players in the sector, the growing need to regulate the sector to avoid economic crises, inflationary trend in Nigeria, ease of doing business and restored confidence of Nigerians, investors both local and foreign, AMCON became a great saviour that nipped in the bud the unpalatable trend.
Even at that, more efforts was desiring to give a simultaneous actions and reactions to the new body, needed not to only to keeping the records of insolvency, but recovery, management and redirection of such recalcitrant individuals as well as conglomerates with financial committments with financial institutions and Banks.
Hence, it sought for an amendment of its act to include not only annexing or outright taking over business and transactions of individuals and conglomerates with commitements, but powers under the law to permanently seize and dispose properties of borrowers from the financial sector.
The amendment of its act known as AMCON amendment act came as big and huge breakthrough not only for the agency, but had contributed to the improvement of Nigeria economic indices, Gross Domestic Product (GDP) as well as permanent solution and stability to the money Institutions.
The interception and intervention of AMCON into various businesses and conglomerates argued as beyond its mandate is now within the confines of its activities, from the legal teeth granted through the amendment of its acts by the National Assembly.
Since then, the fear of AMCON is now the beginning of wisdom for Bank borrowers and perpetual defaulters as the Ahmed Kuru led AMCON had recovered billions and from available records in the coming years determined to recover trillions that will in turn be injected into the economy amidst COVID and its Delta variant stage the world over, with Nigeria not an exception.
Aside taking over many businesses of individual Nigerians and their foreign partners and its conglomerates, AMCON had gone a step ahead under its new legal boundary to confiscate assets in line with the new acts, revitalise and repositioned of assets for optimum performance hitherto hidden under the COVID situation world over, to shortchange as well as service their commitements.
This is in addition to studying favourable environment in the aviation, oil and gas, hospitality, insurance and others to attract direct huge investments and management to create sanity and stability in the sectors.
A case that readily came to mind is the running of some airlines like, Arik Aero, Afrijet and two others as well as plans to establish NG Eagle, a sister company from the same sector, an indication that reports of downturn in the sector does not represent the true reflection of its performances.
The recent seizure of assets and companies of obligors to Banks and financial institutions and plans to go ahead with more seizures is an indicator that Nigeria in no distant future will bounce back its ailing economy orchestrated by lack of due diligence, borrowings from Banks and financial institutions.
A case that readily came to mind is the taking over of the Management of NICON Luxury Hotels and NICON insurance with its exposure to Banks borrowings span for decades without ressolution and servicing of the loans.
The precarious situations that had bedevilled hospitality and insurance business overtime in Nigeria had being brought under control by AMCON’s decisions and intervention, as the companies are back on its fit with new interim managements.
This is applicable to private businesses, schools, Institutions, oil and gas, industries and others that had defied its regulatory framework risk being taking over by AMCON in few years ahead.
The timely decision by the federal lawmakers/National Assembly and the willingness of Management of AMCON under Ahmed Kuru that swung into action, will no doubt be another patriotic moves to salvage Nigeria from economic scavengers and saboteurs.
The positive developement will further guarantee sanity, due diligence, play down on unethical tendencies/practices that had retarded the economy of Nigeria from consumption to productive strides.
AMCON with a consistent and focussed management will move further to inculcate its culture of diversification both to the Banks, financial institutions in Nigeria and other sectors.
It will no longer be buisness as usual where Banks and financial institutions availement will be seen as free launch to many Nigerians and their foreign collaborators whose genuine intentions is laced with sharp practices and fraudulent tendencies, that arose negative performances of the economy.
What is required is all hands must be on deck to support the laudable objectives of the current AMCON to achieve its people oriented objectives, geared towards reliving Nigeria economy in the shortest possible time.
ABUBAKAR YUSUF writes from Abuja. Can be reached on yus.abubakar3@ gmail.com
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