SAN seeks for a debt collection policy for AMCON and others.

The Federal Government should expand the powers of the Asset Management Corporation of Nigeria in its debt recovery process, according to a senior Nigerian lawyer.

Mr Oluwakemi Balogun of Oluwakemi LP, speaking at a training for solicitors, receivers, and receiver/managers in Lagos, said debt recovery in Nigeria would continue to be a burden on AMCON and the financial sector as long as the system allowed some “brazenly walk into banks to borrow money with no intention of repaying the loan obligation.”

According to a statement released by AMCON on Sunday, the lawyer said the government must take drastic measures to save the country from debtors who, according to him, have perfected the art of borrowing money from various banks and serially defaulting on repayment agreements because the country had no policy to protect them.

“We need a national law that will assist lenders,” Balogun said. A national debt collection law is required. This law should not only apply to AMCON as a government agency, but to the entire country.

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“This is one of the methods we can use to reduce bad behavior. You can’t borrow money and then refuse to pay it back in some other economies and get away with it. As a result, Nigeria should not let recalcitrant debtors off the hook.”
Mr. Benedict Daminabo, group head, asset management, represented AMCON Chief Executive Officer and Managing Director Ahmed Kuru, who stated that the agency would continue to emphasize the dangers of not recovering the debt due to its grave implications.

“We have repeatedly made the point at every opportunity that the AMCON mandate must be viewed as one of serious national importance by all stakeholders,” he said.

“If AMCON is unable to recover the massive debt of over N5 trillion by sunset, it becomes the debt of the Federal Government of Nigeria, which will be paid with taxpayers’ money.

“The implication is that the public will be made to pay for the irresponsibility of a small number of people who continue to exploit loopholes in our laws to avoid their moral and legal obligations to repay their debts.”

He went on to say that AMCON had reached a point where all stakeholders needed to band together to combat the common enemy of massive debt.