AMCON can now dispose off assets used as collateral in the collection of bad loans. This increases its effectiveness in recoveries
President Muhammadu Buhari has signed into law two important bills passed by the National Assembly thereby making them to become part of the Laws of the Federation.
A statement by the media aide to the president, Garba Shehu, noted that the new laws were landmarks.
According to him, the first law that was signed was the Climate Change Act owes which origin to a bill sponsored by a member of the House of Representatives, Sam Onuigbo. It provides for, among other things, the mainstreaming of climate change actions and the establishment of a National Council on Climate Change.
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Shehu said the Act now paves the way for environmental and economic accounting and a push for a net-zero emission deadline plan in the country.
Nigeria has been taken an active part in the global arena on the net-zero emission.
Also, is another bill that seeks to amend the Asset Management Corporation of Nigeria Act No.4, 2010. It was signed by the President, giving AMCON the needed power to liquidate the assets used in obtaining defaulting loans.
According to Shehu, the amended AMCON law provides for the extension of the tenor of the Resolution Cost Fund and grants access to the Special Tribunal established by the Banks and other Financial Institutions Act 2020, which confers on the corporation the power “to take possession, manage, foreclose or sell, transfer, assign or otherwise deal with the asset or property used as security for eligible bank assets and related matters.’’
“This, in effect, will help AMCON make recoveries and for debtors to fulfil their commitments to banks,” Shehu said.