Lawmakers Advocate Establishment Of Financial Services Commission

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Members of the house of representatives committee on banking and currency have called for the establishment of Financial Services Commission (FSC) that would create an avenue for harmonisation of both fiscal and monetary policies in the country.

This came on the back of the lawmakers’ observation that the current economic problem the country was facing has made it impossible for an agency as Asset Management Corporation of Nigeria (AMCON) to recuperate outstanding debts in public and private hands.

“The problems we are currently facing are not just monetary policy issues; they are equally fiscal policy issues. Therefore, there is need to be a convergence of both and the establishment of the Financial Services Commission that will create an avenue where both of them can work together to get us out of our present situation,” chairman of the committee Hon. Jones Chukwudi Onyereri, said yesterday in Sokoto in his remark at the opening of a three-day retreat on the emerging issues in the financial and banking industries.

“This retreat is therefore timely given the enormous task that AMCON faces in its debt recovery efforts because of the current state of our economy. The current economic problem makes their (AMCON) harder but that notwithstanding, every debtor is obliged to pay their debt. AMCON therefore needs any assistance it can get in order to effectively fulfil its mandate,” he added, calling on the authority to support the effort of AMCON to resolve the huge debt it carries, which he said was capable of rebounding the economy.

The members of the House of Representatives Committee on Banking and Currency, National Assembly are in Sokoto for a 3-day retreat themed “Capacity building for Members of the Committee on the Emerging issues in the financial sector and Banking Industry, Taking into consideration the current development in the country as it relates to AMCON efforts in loan recovery.”

While promising that the committee will engage in in-depth analysis and discussions on major issues affecting AMCON and its operations, Hon. Onyereri however described the recent introduction of Asset Management Partners (AMPs) as a bold step in the right direction in the debt recovery effort.

He added, “At a time like this, debt recovery is a daunting and enormous task that requires you think outside of the box and come up with innovative ways of accomplishing the task within the ambits of the law. The collaboration with AMPs, which is a consortium of professionals with specialist’s skills in banking, legal, valuation and accounting, represents a new down in AMCON’s debt recovery efforts aimed towards strengthening the capacity for more recoveries.

On his part, Managing Director/Chief Executive Officer of AMCON, Mr. Ahmed expressed concern over the growing rascality among obligors of AMCON, which makes it compelling for AMCON to perpetually depend on the judiciary for meaningful recoveries. He also informed them that AMCON was dealing with obligors that have the financial capacity to engage AMCON from court to court in their plot to evade repayment and thereby sabotaging the effort of the federal government to resuscitate the economy.

Kuru said there was need for all the relevant government agencies to rally round AMCON because the failure of AMCON would mean that the gains Nigeria recorded in 2010/2011 when AMCON was created would be lost and the economic difficulty will befall all of us. He however added that with the continued support of the House, he said he was sure that AMCON would realize its objectives.

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