Amcon act 2019 the new innovations

AMCON Act 2019: New Innovations and Updates

The Asset Management Corporation of Nigeria (AMCON) Act 2019 is a significant update to the original AMCON Act 2010. The new act introduces several innovations and updates aimed at improving the effectiveness and efficiency of AMCON's operations. Here are some of the key changes:

  1. Expanded Mandate: The new act expands AMCON's mandate to include the management of non-performing loans (NPLs) of banks, as well as other financial institutions, such as microfinance banks and mortgage banks.
  2. Increased Powers: AMCON's powers have been increased to enable it to take over the management of distressed banks and other financial institutions, as well as to appoint receivers and managers to manage the assets of such institutions.
  3. Improved Governance: The new act introduces a new governance structure for AMCON, with a board of directors comprising representatives from the Federal Ministry of Finance, the Central Bank of Nigeria (CBN), and the Nigerian Deposit Insurance Corporation (NDIC).
  4. Enhanced Transparency and Accountability: The act introduces measures to enhance transparency and accountability in AMCON's operations, including the requirement for regular reporting to the National Assembly and the publication of annual reports.
  5. Strengthened Enforcement Mechanisms: The new act introduces stronger enforcement mechanisms to ensure that AMCON's powers are effectively exercised, including the power to appoint receivers and managers, and to take possession of assets.
  6. Increased Funding: The act provides for increased funding for AMCON, including the ability to issue bonds and other debt instruments to raise capital.
  7. Improved Risk Management: The act introduces measures to improve risk management in AMCON's operations, including the establishment of a risk management committee and the requirement for regular risk assessments.
  8. Enhanced Collaboration with Other Agencies: The act encourages collaboration between AMCON and other agencies, such as the CBN, NDIC, and the Securities and Exchange Commission (SEC), to ensure a coordinated approach to financial sector regulation and supervision.
  9. Increased Focus on Recovery: The act places a greater emphasis on recovery, with a focus on recovering assets and debts rather than simply managing NPLs.
  10. Improved Communication: The act requires AMCON to maintain effective communication with stakeholders, including banks, debtors, and the general public, to ensure transparency and accountability in its operations.

Overall, the AMCON Act 2019 is designed to strengthen the corporation's ability to manage NPLs, improve the stability of the financial system, and promote economic growth in Nigeria.