‘AMCON Act draconian, needs review to protect small businesses’

A former president of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Dr. ‘Biodun Layonu (SAN), has said the Asset Management Corporation of Nigeria (AMCON) Act is rather draconian and needs to be reviewed to protect small businesses. Speaking exclusively with Daily Trust, Layonu said he was of the view that though the […]

A former president of the Business Recovery and Insolvency Practitioners Association of Nigeria (BRIPAN), Dr. ‘Biodun Layonu (SAN), has said the Asset Management Corporation of Nigeria (AMCON) Act is rather draconian and needs to be reviewed to protect small businesses.

Speaking exclusively with Daily Trust, Layonu said he was of the view that though the exigencies of the 2008/2009 financial crisis were the basis for the act, there was need for the constitutionality of some of the provisions to be tested at the apex court.

“I have to emphasise that on this issue, I’m only expressing my personal view. I think the AMCON Act is rather draconian. The constitutionality of some of the provisions needs to be tested up to the Supreme Court level to have definitive pronouncements on them. 

“The provisions are too much in favour of AMCON itself. The act does not offer enough protection to debtors generally, especially small ones. It was conceived with big business in mind,” he added.

He said the court has to do more in interpreting some of the provisions of the act without going off the mark. He added that the interpretations should be done in  such a way as to maintain the balance between AMCON as an institution that is already coated with so much statutory powers and the debtors who have no other place to go but the courts to seek protection.

Layonu said the courts should be able to look at cases to determine pure cases of recalcitrance, that is, those who just don’t want to pay. “There are those who really want to pay but the circumstances make it difficult for them, and in the situation where the interest keeps mounting, there won’t be redemption. 

“I think the whole thing should be reviewed and not left to the discretion of an institution that already has an enormous statutory power,” he said.