…Okays Yuguda As Chairman
The Senate has directed the management of the Asset Management Corporation of Nigeria (AMCON) to begin compiling a comprehensive record of its operations and achievements ahead of the corporation’s planned expiration in 2030.
The Senate issued the directive on Tuesday through its Committee on Banking, Insurance and Other Financial Institutions, which screened Abubakar Yuguda for the position of AMCON chairman.
President Bola Tinubu recently appointed Yuguda as chairman of the board of Corporation and was accordingly cleared by the Senate.
AMCON was established by the Federal Government in 2010 as a special-purpose vehicle to stabilise the banking sector by acquiring non-performing loans (NPLs) and distressed assets from financial institutions.
The agency was also mandated to recover more than N4 trillion in toxic debts and was given a 20-year lifespan, scheduled to end in 2030.
With only four years left before the corporation is expected to wind down, members of the Senate committee expressed concern about the need for a clear account of AMCON’s activities, accomplishments and outstanding obligations.
Speaking during the session, Senator Sani Musa urged the Corporation’s leadership to begin documenting its performance record and provide lawmakers with an update on its progress.
“The issue I wish to raise is that AMCON was established to resolve challenges within the financial system, particularly non-performing loans, distressed banks and related financial obligations,” Musa said.
“It has a statutory lifespan and is expected to wind up around 2030. Looking at that timeline, there is a need for this committee to receive an up-to-date report on the status of AMCON.
“We need to know where the corporation stands today, what it has achieved since inception and what outstanding responsibilities remain before its expected sunset.”
Responding, Chairman of the committee, Senator Tokunbo Abiru endorsed Musa’s position and directed Yuguda and AMCON Managing Director, Gbenga Alade, to provide detailed responses to the issues raised.
“I have no doubt that, in the not-too-distant future, the committee will receive a comprehensive response on the issues you have highlighted,” Abiru said.
Explaining the decision to grant Yuguda an expedited screening, the committee chairman added: “We deliberately decided to keep today’s exercise brief because this is already the third time the nominee has appeared before us.
“We know him quite well, so today’s exercise has been more of a formal interaction.”
The committee’s directive comes amid growing interest in the future of AMCON and the extent of its success in recovering bad debts and resolving legacy banking sector challenges before its mandate expires in 2030.
(The Whistler)