National Assembly Passes AMCON Bill

The Asset Management Corporation of Nigeria (AMCON) Bill has been passed following its harmonisation by the committee set up by the two chambers of the National Assembly.

The Central Bank of Nigeria (CBN) made this known on Thursday in a statement issued on its website.

It said the bill was passed by the Senate on Wednesday after the debate on the report of the joint Senate and House Committees on Banking, Insurance and other Financial Institutions, Capital Market and Finance.

The Tide source reports that AMCON is expected to start operation with N20 billion share capital.

The bill allows both the CBN and the Federal Ministry of Finance to provide N10 billion each.

The corporation will be responsible for the efficient management and disposal of toxic assets of Nigerian banks, including non-performing loans (NPLs).

The statement said it would also facilitate the acquisition of the shares of Deposit Money Banks (DMBs) that may require capitalisation to maximise the returns from disposed assets, and encourage investment activities in the capital market.

The corporation is also empowered to issue bonds or other debt instruments for acquisition of banks’ non performing loans as well as generate funds through authorised capital, income from management and disposal of eligible bank assets, its investment income and money borrowed from other sources in accordance with the provision of the Act.

The Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Mrs Nkechi Nwogu, had earlier said that AMCON would assist banks in moderating the cost of bank distress and restore confidence in the capital market the banking sector.