AMCON Amendment Bill Passes Second Reading

A proposed bill seeking the amendment of the AMCON Act has passed second reading at the House of Representatives. The amendment is to make provision for the expansion of its board to make it more productive.

This move is also to accommodate representatives from the six geopolitical zones.

Section 10 of the principal act prescribes the appointment of a part-time chairman, the executive directors and non-executive directors among officers representing various MDAs exclusive to the Ministry of Finance.

Sponsor of the bill, Hon. Joseph Eghoghon Ediowele submitted that AMCON does not need a part-time chairman and representatives solely from MDAs. He decried the current inefficiency of the corporation.

AMCON Loses N4.5trn, Bad Loans N3.5trn

Also, Hon. Ediowele disclosed that the corporation losses currently stands at N4.5trn. Also, bad loans owed the corporation by individuals and companies amounts to N3.5trn.

“It is even difficult for AMCON to call a board meeting today due to total outstanding bad loans owed it by individuals and companies. This stands at N3.5trn and total accumulated losses of AMCON stands at N4.5trn.”

Similarly, he said it is obvious that members of AMCON Board, as presently constituted may have their hands full of primary assignments from their respective organisations as to give AMCON the desired attention as when due. This could hamper the prompt, efficient and effective running of the corporation.

The Honourable maintained that this has negative impacts on the banking sector.

Therefore, he proposed that section 10 be amended for the board to be expanded. This is to accommodate people with requisite professional qualifications and experiences who are not encumbered with government official engagements.

The lawmaker also argued that this amendment will enhance the efficient and effective running of this important corporation.