Senate passes AMCON ammendment Bill
The Senate on Thursday passed into law, the Asset Management Corporation of Nigeria Act, 2010 amendment bill.
The amendment bill is meant to remove certain ambiguities from the Act that impede the operations of AMCON in carrying out its mandate.
Specifically, the bill seeks to amend Sections 2(3), 16(5), 34(1), 34 (2), 35, 46(2), 48, 60, 61 and 62 of the Act.
Presenting the report on the floor of the Senate on Thursday, Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Bassey Otu, said the passage of the bill will not only correct the defects in the extant Act but also strengthen the banking system for enhanced performance.
This, he said, would strengthen AMCON’s operations and serve the statutory purpose for which it was created.
According to him, “it will also enhance AMCON’s management of acquired assets in order to obtain best financial returns thereby keeping the fiscal cost to the government at the barest minimum.”
Otu said, “Future banking resolution cost, which may result from operational and financial mismanagement by the Deposit Money Banks, will not be borne by the Nigerian tax payers, instead by the banks with money from the Fund.”
This, he said, would strengthen AMCON’s operations and serve the statutory purpose for which it was created.
He added that the passage of the bill will not only correct the defects in the extant Act but also strengthen the banking system for enhanced performance.
The senator stated that it will also enhance AMCON’s management of acquired assets in order to obtain best financial returns thereby keeping the fiscal cost to the government at the barest minimum.
He said, “There is a very expectation from operators of the financial sector that the establishment of a Banking Sector Resolution Cost Fund would enhance financial system stability and boost confidence.
He said it will also act as a physical buffer by providing a ready source of assets that could be used to meet the cost of future bank failure without any recourse to the use of public funds”
Deputy Senate President, Ike Ekweremadu, who presided over the plenary, said the commitment of the senate to the passage of the bill was to sustain a stable economic system.
He said, “We finally fine-tuned the AMCON Bill to make it more operational and to add value to the work they are doing. We believe we have covered all the lapses existing in the AMCON Bill with this amendment.”
The amendment bill is meant to remove certain ambiguities from the Act that impede the operations of AMCON in carrying out its mandate.
Specifically, the bill seeks to amend Sections 2(3), 16(5), 34(1), 34 (2), 35, 46(2), 48, 60, 61 and 62 of the Act.
Presenting the report on the floor of the Senate on Thursday, Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Bassey Otu, said the passage of the bill will not only correct the defects in the extant Act but also strengthen the banking system for enhanced performance.
This, he said, would strengthen AMCON’s operations and serve the statutory purpose for which it was created.
According to him, “it will also enhance AMCON’s management of acquired assets in order to obtain best financial returns thereby keeping the fiscal cost to the government at the barest minimum.”
Otu said, “Future banking resolution cost, which may result from operational and financial mismanagement by the Deposit Money Banks, will not be borne by the Nigerian tax payers, instead by the banks with money from the Fund.”
This, he said, would strengthen AMCON’s operations and serve the statutory purpose for which it was created.
He added that the passage of the bill will not only correct the defects in the extant Act but also strengthen the banking system for enhanced performance.
The senator stated that it will also enhance AMCON’s management of acquired assets in order to obtain best financial returns thereby keeping the fiscal cost to the government at the barest minimum.
He said, “There is a very expectation from operators of the financial sector that the establishment of a Banking Sector Resolution Cost Fund would enhance financial system stability and boost confidence.
He said it will also act as a physical buffer by providing a ready source of assets that could be used to meet the cost of future bank failure without any recourse to the use of public funds”
Deputy Senate President, Ike Ekweremadu, who presided over the plenary, said the commitment of the senate to the passage of the bill was to sustain a stable economic system.
He said, “We finally fine-tuned the AMCON Bill to make it more operational and to add value to the work they are doing. We believe we have covered all the lapses existing in the AMCON Bill with this amendment.”
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