Reps: AMCON $25 billion liabilities heighten economic woes


The House of Representatives has expressed concern over the undue accumulation of N5 trillion (about $25 billion) debts bought over by the Asset Management Corporation of Nigeria (AMCON) and its inability to recover same.

An Ad hoc Committee on Undue Accumulation of Debts and Alleged Fraudulent Sales of Banks, headed by Hon. Albert Adeogun, revealed the current debt portfolio of the Corporation is N800 billion above the ceiling stipulated by the Central Bank of Nigeria (CBN).

The report indicated that the Corporation balance sheet has a shortfall of N3.8 trillion (about $19 billion), pointing out that the geometric accumulation of debts by AMCON will no doubt endanger the dwindling national reserves put at $30 billion at that time, particularly as the Federal Government stood as guarantor for AMCON bonds as enshrined in Section 27 of AMCON Act, 2010.

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