The Nigerian Senate
CBN Interest Rate on AMCON too High, Needs Review – Senate
The Senate has expressed concerns over the excessive interest rate imposed on the Asset Management Corporation of Nigeria, which are deterring its operations.
The Chairman Senate Committee on Banking, Insurance and other Financial Institutions, Senator Adetokunbo Abiru, noted that the 10th Senate of the Federal Republic of Nigeria would ensure that the best objectives of setting up AMCON by the Federal Government in 2010 were achieved.
Abiru who frowned at the huge interest rates that AMCON paid to the Central Bank of Nigeria, said if that was allowed to continue, it would practically make it impossible for the much-touted AMCON sunset to be realised.
In a statement signed by the spokesperson of AMCON, Jude Nwauzor, he said, “A situation where AMCON pays as much as six per cent to the CBN and also charged some percentage on obligors whose businesses were already challenged before AMCON intervention was not a healthy practice as AMCON’s current exposure stands at about N4.7tn.
He said his committee would engage the CBN, and all relevant stakeholders to take a second look at the AMCON funding model, the interest elements and all other processes that would hasten the resolution of the huge burden that AMCON presently carries.
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