AMCON Seeks Accommodation in BOFIA 2020 - THISDAY
By Obinna Chima
The Asset Management Corporation of Nigeria (AMCON) has approached the National Assembly to accommodate it in the provisions of the newly amended Banks and Other Financial Institution Act 2020 (BOFIA 2020), which set up special tribunals for hearing financial matters emanating from the financial institutions.
Making a presentation before the Senate Committee on Banking, Insurance and other Financial Institutions at the National Assembly, the Managing Director/Chief Executive Officer of AMCON, Mr. Ahmed Kuru, said the proposed amendment and a few others would be critical to AMCON’s expected deliverables.
The legislation he said would enable the corporation to resolve the debts as quicker than necessary.
The Senate Committee chaired by Senator Uba Sani (Kaduna State) had invited AMCON’s top executives and that of other key stakeholders and sister agencies of the federal government including the Central Bank of Nigeria (CBN), the Ministry of Finance and the Nigeria Deposit Insurance Corporation (NDIC) for another engagement for a continued engagement regarding the amendment of the Asset Management Corporation of Nigeria Act No.3 (Amendment Bill) 2021 with the Senate Committee on banking insurance & other financial institutions.
The bill was originally sponsored by Senator Opeyemi Bamidele (Ekiti State).
Marshalling a case during the presentation, most of which received the backing of all stakeholders in attendance, Kuru said, “By the following introduction of new sections, the Corporation is seeking to be accommodated by the provisions of the newly amended BOFIA (2020), which sets up Special Tribunals for hearing financial matters emanating from the financial institutions.
“The designation of a special tribunal for financial cases immediately assumes the achievement of quicker resolution of matters in Court as the Judges are designated to hear only such financial matters.
“Moreover, BOFIA prescribes a maximum period of six months to conclude matters brought before the Tribunal. AMCON being accommodated under this Tribunal will assist AMCON with its speed of recovery.
“To enable AMCON succeed in its national call to duty, AMCON solicits the continued support of this esteemed Distinguished Senate Committee on Banking, Insurance & Other Financial Institutions with the proposed amendments for adoption.”
The AMCON boss attended the Senate engagement with other top officials of AMCON including the Executive Director, Operations, Mr Aminu Ismail; the Company Secretary, Mr. Saidu Jallo; Head, Legal, Mr. Albert Nwanozie; AMCON Chief Finance Officer, Mr Gbenga Ataiyero and Sa’ad Ahmed, Head, Intergovernmental Department.
He disclosed that the areas which AMCON is seeking intervention by the National Assembly include the Cessation of the Resolution Cost Fund/defined tenure; dissolution date of the Corporation, recovery through special tribunal for enforcement and recovery of eligible loans as well as certificate of Sale of Certificate of Transfer as a valid registrable instrument for AMCON.
Providing justification on the proposal, Kuru reminded the Committee that Section 61 (b) in ascribing a tenor for the operation of the Resolution Cost Fund describes same as a period of 10 years from the calendar year 2010 but may be extended by not more than a maximum of five years by the National Assembly.
This, he said was done under the assumption that the debt obligations will be extinguished within 10 years.