The National Assembly has moved to empower the Nigeria’s ‘bad bank’ the Asset Management Corporation of Nigeria (AMCON) to trace and sell any property belonging to a bank debtor, including those not presented as security for the credit facility.
An amendment to the AMCON Act, which has been passed in the Senate has now passed through the reading in the House of Representatives.
in the amendment, the Reps approved that AMCON gets access to the special tribunal established by the Banks and Other Financial Institution Act for enforcement and recovery of eligible loans.
Also, the lawmakers reduced the tenure of the chief executive of the corporation from 10 years to five years, while the National Assembly will have the powers to extend the tenure by a maximum of five years.
The bill, which was sent to the House for concurrence by the Senate, however, removed state High Court and the High Court of the Federal Capital Territory from the list of courts where the corporation could prosecute its cases.
The bill redefined ‘court’ in the Act to mean the Federal High Court, the Special Tribunal for Enforcement and Recovery of Eligible Loans and other superior courts exercising appellate jurisdiction over the Federal High Court and the Special Tribunal for Enforcement and Recovery of Eligible Loans.
Subsection (1)(b) also states, “Any certification of sale or certificate of transfer of title executed by the Corporation in exercise of its powers under subsection (1) (a) above shall constitute a valid registrable instrument under all applicable land registration laws applicable in the Federation and in all land and corporate registries in the federation.”