Senate Pass Bill to Expand Powers of Firm Buying Banks’ Bad Debts

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Nigerian senate passed a bill that strengthened the power of state-owned Asset Management Corp. of Nigeria to recover bad loans it acquired from commercial lenders during a banking crises more than a decade ago.

The lawmakers approved the so-called Amcon Amendment Bill, which empowers the company to take possession, manage or sell all properties traced to debtors, whether or not such assets or property have been used as collateral for obtaining the loan, according to an emailed statement on Wednesday.

The bill also empowers the Abuja-based company to take defaulters to a special tribunal to recover debts. Amcon is struggling to recover about 5.5 trillion naira ($13.4 billion) debts from borrowers since the 2008-09 banking crisis.