Block AMCON Debtors From Juicy Contracts – Committee To FG

• Osinbajo says days of pampering, patronage over soon

BY EDMOND ODOK – If promises made are kept, then rougher times await recalcitrant banks’ debtors as the Federal Government may no longer fraternise or treat them with kids’ gloves for the overall good of the nation’s economy.

With this expected hard-line position, individual contractors or companies may henceforth not enjoy government contracts and project patronages unless they undergo due diligence clearance from the Asset Management Corporation of Nigeria (AMCON).

Vice President Yemi Osinbajo dropped the hints recently while receiving the report by the Inter-Agency Committee on the recovery of debts owed to AMCON

Assuring that the government would review and act on the report accordingly, the Vice President however noted that AMCON debtors doing business with the Ministries, Departments, and Agencies (MDAs) is a due diligence issue and there must be compliance with the requirements of the law.

Speaking while presenting to the Vice President, the  Committee members, led by its Chairman, Professor Bolaji Owasonoye (SAN) canvassed that strict compliance and implementation of relevant laws, including the AMCON Act, will make chronic debtors pay for their recalcitrance and deliberate flouting of loans agreements.

According to Owasonoye, who is also the Chairman of the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the government’s continuous pampering of recalcitrant debtors with juicy contracts is largely responsible for the huge Non-Performing Loans (NPLs) currently hurting the nation’s banking sector.

Specifically, the Committee advised that going forward, “all AMCON debtors must not be allowed to transact business or enjoy patronage with any government agency whatsoever, except clearance is obtained from AMCON on the debt status of such obligors.”

Owasonoye said “between 2020 and 2021, AMCON made significant recoveries which is highlighted in the report”, adding that; “Within the period under review, AMCON witnessed 10% growth in the recovery performance across various asset classes. For instance, in the year, 2020, the sum of N146 Billion was recovered, while in 2021 the sum of N161 Billion was also recovered.

“The recovery outlook for 2022 is also looking positive and the Committee will not relent in its effort in engendering more recoveries”.

Furthermore, he said the “Committee will continue its assignment with the institution of bankruptcy proceedings, tax infraction, inquiry as well as other strategies to ensure the obligors are brought under the recovery net of AMCON.”

Inaugurated in September 2019, the Committee’s mandate includes reviewing the status of debt owed to AMCON; collating information relating to respective debtors and their current status; and deliberating on practical, legal, and other strategies for the recovery of the outstanding debts, among others.

The Chairman further noted that the Committee immediately commenced work upon inauguration, but the advent of the COVID-19 global pandemic inevitably slowed down the pace of activities and enforcement measures.

A statement by the Senior Special Assistant to the President on Media and Publicity, Office of the Vice President, Laolu Akande said members of the Inter-Agency Committee consist of representatives from various government agencies, including ICPC; AMCON; Federal Ministry of Justice; and Nigerian Financial Intelligence Agency (NFIU).

Others include the Nigerian Deposit Insurance Corporation (NDIC); the Central Bank of Nigeria (CBN); the Department of State Services (DSS); and the Economic and Financial Crimes Commission (EFCC).

Akande said representatives of the listed agencies and AMCON’s Managing Director/Chief Executive Officer, Ahmed Kuru were in attendance at the meeting.