AMCON – How to Buy Assets In 3 Easy Steps

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Sirmike Thursday, 19 September 2024, 11:00 pm

AMCON – How to Buy Assets In 3 Easy Steps

AMCON was created by an Act of the National Assembly in response to the 2009 banking crisis in Nigeria. The crisis led to a significant increase in non-performing loans (NPLs) held by Nigerian banks. These NPLs posed a threat to the stability of the financial system and to economic growth.

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What are the requirements to buy assets from AMCON?

To buy assets from AMCON, you must not be indebted to AMCON, and neither should the directors of the company you represent. You must also not be an AMCON employee, a relative of an AMCON employee, or a member of the AMCON board.

How can I Bid for AMCON assets

To bid for AMCON assets, you will need to download the AMCON Bid Submission form and the Know Your Client (KYC) Form from the AMCON website. You will also need to submit a 10% payment in Certified Bank Drafts in a sealed envelope with “Bid for Property” inscribed on the top left corner of the envelope.

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What is Section 49 of the AMCON Act?

Section 49 of the Asset Management Corporation of Nigeria (AMCON) Act gives AMCON the power to apply to the court to take possession of a debtor’s property. This power can be exercised where AMCON has reasonable cause to believe that the debtor or debtor company is the bona fide owner of any movable or immovable property.

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The application must be made before or at the time of filing an action for debt recovery or other like action against the debtor. The court may grant the application if it is satisfied that AMCON has established a prima facie case against the debtor.

Once the court grants the application, AMCON will be entitled to take possession of the property and sell it to recover the debt owed to it. The proceeds of the sale will be used to pay off the debt, with any remaining balance being paid to the debtor.

Section 49 of the AMCON Act was amended in 2019 to give AMCON even broader powers to take possession of a debtor’s property. The amendment also removed the requirement for AMCON to establish a prima facie case against the debtor before the court will grant an application to take possession of property.

The amendment to Section 49 of the AMCON Act has been criticized by some as being unconstitutional and unfair to debtors. However, AMCON has defended the amendment, arguing that it is necessary to give the corporation the powers it needs to recover debts and stabilize the Nigerian economy.

What is the ownership structure of AMCON?

AMCON is fully owned by the Nigerian government. The Central Bank of Nigeria (CBN) and the Ministry of Finance each own 50% of AMCON’s shares.

What is the allowance for AMCON?

AMCON is an asset management corporation in Nigeria that was created to resolve non-performing loans (NPLs) of banks.

In Conclusion:

AMCON plays a crucial role in the Nigerian economy by tackling the issue of non-performing loans and ensuring the stability of the banking sector. Its ownership structure, with equal shares held by the Central Bank of Nigeria and the Ministry of Finance, highlights the government’s commitment to addressing the challenges of debt recovery and economic stabilization. With its mandate to resolve NPLs, AMCON is a vital institution that helps to safeguard the financial system and promote growth in Nigeria.