In a determined effort to rectify the financial challenges plaguing the Asset Management Corporation of Nigeria (AMCON), Senator Adetokunbo Abiru, Chairman of the Senate Committee on Banking, Insurance, and Other Financial Institutions, has vowed to steer the 10th Senate towards achieving the original objectives set for AMCON’s establishment in 2010.
Senator Abiru expressed deep concern over the substantial interest rates paid by AMCON to the Central Bank of Nigeria (CBN), asserting that if this continues, it could jeopardize the realization of AMCON’s much-anticipated sunset. The current payment structure, where AMCON disburses up to six percent to the CBN, coupled with additional charges on obligors, is deemed unsustainable by Abiru, especially considering AMCON’s colossal exposure of approximately N4.7 trillion.
Promising proactive measures, Abiru affirmed that his committee would engage with the CBN and other stakeholders to reevaluate AMCON’s funding model, interest components, and other processes essential for expeditiously resolving the formidable burden AMCON currently shoulders.
The Senator’s remarks came to light during an interactive session at the New Senate Building, National Assembly Complex, Abuja, where he engaged with the management of AMCON, led by its Managing Director and Chief Executive Officer, Mr. Ahmed Lawan Kuru, OFR.
In a statement released by Jude Nwauzor, AMCON’s spokesperson, Senator Abiru lauded AMCON for its transparent practices, commending the organization for being up-to-date with its budget, records, and timely submission of audited accounts up to the financial year 2022.
Reflecting on the essence of the interaction, Abiru emphasized the Senate’s commitment to work collaboratively with AMCON and regulatory bodies to ensure the corporation’s timely wind-down. Acknowledging AMCON’s pivotal role in addressing financial challenges since its inception after the 2008/2009 global financial crisis, Abiru emphasized the urgency of establishing a definitive sunset date for AMCON.
Abiru, representing the Lagos East Senatorial District and a former Group Managing Director and Chief Executive Officer of Polaris Bank Limited, underscored the importance of addressing the funding model discrepancies to secure AMCON’s success in fulfilling its national mandate.