Nigeria: Debtors may soon be unable to get FG contracts without AMCON clearance

The Federal Government may soon move to ensure that recalcitrant debtors are barred from participating in government projects and contracts without prior clearance by the Asset Management Corporation of Nigeria (AMCON).

This was disclosed in a press statement signed by Laolu Akande, the Senior Special Assistant to President Muhammadu Buhari on Media & Publicity.

The statement explained that the policy move was recommended by an inter-agency committee established by the government to recover debts owed to AMCON.

Vice President Yemi Osinbajo, who received the committee’s interim report on behalf of the government, assured that the recommendation would be acted upon accordingly. He also agreed that AMCON debtors engaging in business with government agencies is a due diligence lapse that needs to be checkmated.

The Committee’s proposal: Prof. Bolaji Owasonoye, who presented the report to the Vice President, proposed debtors be barred completely from participating in government projects and contracts unless prior approval from AMCON is obtained. He said:

• “All AMCON debtors must not be allowed to transact business or enjoy patronage with any government agency whatsoever, except clearance is obtained from AMCON on the debt status of such obligors.
• “Between 2020 and 2021, AMCON made significant recoveries which are highlighted in the report. Within the period under review, AMCON witnessed 10% growth in the recovery performance across various asset classes. For instance, in 2020, the sum of N146 Billion was recovered, while in 2021, the sum of N161 Billion was also recovered. The recovery outlook for 2022 is also positive, and the Committee will not relent in its effort to engendering more recoveries.”

About the Committee: The Committee’s mandate, which was established in September 2019, includes, among other things, reviewing the status of debt owed to AMCON, gathering data on specific debtors and their current situation, and debating practical, legal, and different strategies for recovering the unpaid debt.

Members of the Inter-Agency Committee consist of representatives from various government agencies, including the Independent Corrupt Practices and Other Related Offences Commission; Asset Management Corporation of Nigeria; Federal Ministry of Justice; Nigerian Financial Intelligence Agency; Nigerian Deposit Insurance Corporation; Central Bank of Nigeria; Department of State Services; and the Economic and Financial Crimes Commission.