Borrowers may soon not be able to get FG contracts without AMCON clearance

Debtors may soon be unable to get FG contracts without AMCON clearance

The Federal Government will soon act to ensure that culpable debtors are prohibited from participating in government projects and contracts without the prior approval of Asset Management Corporation of Nigeria (AMCON).

This was disclosed in a press statement signed by Laolu Akande, the Senior Special Assistant to President Muhammadu Buhari on Media & Publicity.

The statement explained that the policy move was recommended by an inter-agency committee set up by the government to recover debts owed to AMCON.

Vice President Yemi Osinbajo, who received the committee’s interim report on behalf of the government, assured that the recommendation would be acted upon accordingly. He also agreed that AMCON debtors doing business with government agencies is a due diligence lapse that needs to be investigated.

The Committee’s proposal: Prof. Bolaji Owasonoye, who presented the report to the Vice President, suggested that debtors be completely barred from participating in government projects and contracts unless prior approval is obtained from AMCON. He said:

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  • “All debtors of AMCON should not be allowed to do business or enjoy the patronage of any government agency whatsoever, unless clearance is obtained from AMCON on the debt status of such obligors.
  • “Between 2020 and 2021, AMCON made several recoveries highlighted in the report. During the period under review, AMCON witnessed a 10% growth in recovery performance across various asset classes. For example, in 2020, the amount of N146 Billion was recovered, while in 2021, the sum of N161 Billion was also recovered.The recovery outlook for 2022 is also positive, and the Committee will not stop its efforts to generate more recoveries.

About the Committee: The Committee’s mandate, which was established in September 2019, includes, among other things, reviewing the status of the debt owed by AMCON, collecting data on specific borrowers and their current situation, and debating practical, legal , and various strategies for recovering unpaid debt. .

The members of the Inter-Agency Committee consist of representatives from various government agencies, including the Independent Corrupt Practices and Other Related Offenses Commission; Asset Management Corporation of Nigeria; Federal Ministry of Justice; Nigerian Financial Intelligence Agency; Nigerian Deposit Insurance Corporation; Central Bank of Nigeria; Department of State Services; and the Economic and Financial Crimes Commission.

Editing by Emmanuel Abara Benson

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