A joint committee of the House of Representatives is to investigate the inability of the Asset Management Company of Nigeria (AMCON), to recover over two trillion Naira, it has given out to cover bank debts.

The sponsor of the motion, Rep. Johnbull Shekarau, observed that the inability of the agency to recover this money has made it difficult for the agency to redeem a three-year zero coupon bond, it acquired from the Central Bank of Nigeria (CBN).

The committees on Banking and Currency, Aids, Loans and Debt Management are to investigate the matter and report back to the House in four weeks.

In May, a Presidential Inter-Agency Committee on recovery of loans granted to commercial banks and corporate organisations by Asset Management Corporation of Nigeria (AMCON) has been set up by the Federal Government.

This was revealed in a statement made available to the media on Monday by Comrade Salihu Othman Isah, the spokesman for the Attorney General of the Federation and Minister of Justice, Mr Abubakar Malami.

The inauguration of the committee, according to the minister of Justice, was held on Thursday, May 19, in Abuja.

The committee is headed by the Minister.

Mr Malami in his speech recounted that AMCON was established by the Act of the National Assembly to prevent the collapse of the Nigerian banking sector following the banking crisis, as a result of the Bank Consolidation Reforms in 2008.

The AGF pointed out that the above situation led to huge indebtedness for banks which culminated in the eventual purchase of the toxic loans by AMCON in order to stabilise the banking sector and by extension the Nigerian economy. (Channels TV)

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