The Senate yesterday passed the Asset Management Corporation of Nigeria Amendment (AMCON) bill after considering the report of its Committee on Banking, Insurance, and Other Financial Institutions.

The amendment bill empowers AMCON to, among others, take possession, manage or sell all assets traced to debtors, whether or not such assets or property are used as security/collateral for obtaining the loan.

It also empowers the corporation to access the special tribunal established by the BOFIA, 2020 for dealing with financial related matters.

Presenting the report, Chairman of the Committee, Senator Uba Sani (APC, Kaduna Central), said the committee engaged with stakeholders such as AMCON, the Ministry of Finance, Budget and National Planning; Central Bank of Nigeria and Nigeria Deposit Insurance Corporation (NDIC).

According to him, the stakeholders in their submissions pushed for AMCON to be empowered to take possession, manage, foreclose or sell, transfer, assign or otherwise of property used as security for eligible bank assets among others.
This, he said, would provide for a quicker, easier and legitimate process of assets disposal.

The Deputy President of the Senate, Senator Ovie Omo-Agege (APC, Delta Central), during the clause-by-clause consideration of the bill, sought to know the rationale behind the recommendation of the committee in clause two, which empowers AMCON to take possession of assets outside of those used as collateral in obtaining a loan request.

He said:

The essence of collateral is that in the event of default, you lose that asset. What I am reading here is that in addition to seizing that asset, they (AMCON) want to go beyond that to every other asset or property that is traceable to the debtor. I think I need some clarifications to that.

Senator Bassey Akpan (PDP, Akwa-Ibom North-East) also said no creditor should be allowed to go outside the asset presented for the facility.

Senator Adamu Aliero said:

Mr. Chairman, if you can recall, during debate on this bill, senators made it abundantly clear that these debtors are taking government money and they are using it freely and going free, and we need stringent measures to be enforced to recover the money.

The President of the Senate, Dr. Ahmad Lawan, at this point, called for a voice vote on the contentious clause, which eventually was adopted by the majority.

After the passage of the bill, Senators Bassey Akpan and Chukwuka Utazi, while relying on Point of Order 73, contested Lawan’s ruling by requesting for a division.

Utazi kicked against the clause empowering AMCON to take possession of assets traced to debtors, saying that most of the banks that have those bad debts colluded with the customers in doing that in the first place.

Interjecting, Lawan said:

When we come to legislate, we all come here with a very clear mind; that we are doing this for our country. We don’t have any interest but the national interest. And when the majority of our colleagues here in their judgement feel that this is the right thing to do, that’s the majority view, unless we have any cause to reverse ourselves.

If the majority of senators say this is what they feel should be done to remedy a situation that requires our attention, I think we should allow that.

And besides, I believe we had explanations from the committee members who went through all the processes; So, I believe that we should let it go. Let the people go to court to test it, but our hope and desire is for AMCON to be able to recover huge sums of money – trillions that people have taken and now is on the head of Nigerians. And, it is criminal, really. People will consciously take money. I will advise that we stick to our decision.

Senators Bala Ibn Na’Allah (APC, Kebbi South) and Opeyemi Bamidele (APC, Ekiti Central), advocated the inclusion of a provision amid the AMCON amendment, to give it precedence over any other law that may be used to cite an instance of conflict.

Na’Allah stated that they have to put a clause to say, ‘notwithstanding the provisions obtained in any other law to enable the law take effect.’

Senator George Thompson Sekibo (PDP, Rivers East), while citing the Senate rules, observed that it will be out of order to reconsider any specific question, upon which the Senate has come to a conclusion during the current session, except upon a substantive motion or decision.

He said:

All the discussion we are making on it now is of no value, they are not supposed to be recorded because we have come to a decision on it. It may be wrongly or rightly, but we have ended it.

Lawan, thereafter, ruled in favour of the provision of the Senate Rule cited by Sekibo and the bill was passed.

Justin Nwosu

Justin Nwosu is the founder and publisher of Flavision. His core interest is in writing unbiased news about Nigeria in particular and Africa in general. He’s a strong adherent of investigative journalism, with a bent on exposing corruption, abuse of power and societal ills.