Goodluck Signs AMCON Bill into Law

President Goodluck Jonathan has signed the Asset Management Corporation of Nigeria, (AMCON) Bill into law.
With the signing of the Bill, all is now set for the immediate take off of the corporation in the weeks ahead as the Act provides the legal backing for the establishment of the long-awaited corporation.
In a press release signed by Mohammed Abdullahi, head, Corporate Communications CBN, President Jonathan stated that was quoted as saying “the establishment of AMCON is a reflection of the Government’s commitment to safeguard the interests of depositors, creditors, and other stakeholders in the Nigerian financial system and in doing so rejuvenate the domestic economy.”
According to the President, AMCON will help stimulate the recovery of the financial system and ultimately the wider economy through among others, providing liquidity to the banks by buying their non-performing loans, recapitalizing the intervened banks.
It is also to increase access to refinance opportunities for borrowers, increase confidence in banks’ balance sheets and therefore Nigeria’s credit and risk ratings, encourage a return of confidence to the capital market and prevent continued job losses in the banking industry.
Goodluck commended the Ministry of Finance, Ministry of Justice and the Central Bank
of Nigeria for the collaboration that was put into the preparation and finalization of the landmark Bill and expressed the hope that the signing into law of the Bill will be an important turning point for the return to strong economic growth and financial system stability. He also commended the National Assembly for ensuring the smooth passage of the Bill.
Meanwhile, the CBN and the Federal Ministry of Finance are putting finishing touches to the setting up of appropriate structures for the AMCON as required under the Act, the statement stated.
It would be recalled that Sanusi Lamido, the CBN Governor at the last Monetary Policy Committee, (MPC) media briefing indicated that he was hopeful that AMCON would come on stream by the end of September 2010.