Opinion by simonkolawole: AMCON, NDDCOnline, NEDC and other errors via thecableng
Nigeria Act, many Nigerians missed the fine print. AMCON had been set up by the federal government in 2010 to prevent another round of banking failure by “buying” non-performing loans from the lenders. While the banks would breathe easy, AMCON would recover the loans mostly by selling debtors’ assets. But, as with everything Nigerian, many big boys began to game the system and basically avoided paying back the loans. For them, life went on as usual.
Luckily, the National Assembly had also passed the Banks and Other Financial Institutions Act 2020, which was signed into law by Buhari in November 2020. BOFIA, as it is called, had not been updated for two decades despite the changing realities. The law is now better in tune with modern trends as it also regulates the fintech companies, a new subsector altogether.
Worse still, the National Deposit Insurance Corporation , which insures bank deposits, was only empowered by law to pay pittance to the depositors of failed banks. The maximum payable is N500,000 for account holders in a commercial bank, no matter the amount lost . AMCON definitely saved jobs and lives in 2010, but there were those who kicked over the moral hazard of rewarding the banks’ corrupt risk management system.
The same goes for the Amnesty Programme. The original concept, as President Umaru Musa Yar’Adua told us in 2007, was to rehabilitate and reform youths who were engaged in militancy. The idea was to make them lay down their arms and embrace a process that will empower them with skills and make them reintegrate into the society. It was not supposed to be forever and ever. Today, the Amnesty Programme has become one of the warmest honeypots.
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