EXAMINATION OF SOME MAJOR INNOVATIONS INTRODUCED BY THE ASSET MANAGEMENT CORPORATION OF NIGERIA (AMENDMENT) ACT 2021

Abstract

The extent to which the financial system supports diversification of a nation's economy depends on whether financial institutions extend loans to non-volatile productive sectors as well as the extent of the loan defaults. A developing nation committed to industrialization must look towards diversifying its economy for inclusive and sustainable growth.1 The volatility of the oil sector has over time remained the major bane of most oil dependent economies of the world, Nigeria inclusive.2 The continuous dwindling in the world's oil price has yet presented us the opportunity to have a rethink on what positive thing non-oil sector loan concentration will do to the attainment of economic diversification. Most countries depending on the oil sector have faced numerous crises. On 19th July, 2010, the then President of Nigeria, President Goodluck Jonathan signed the AMCON Act3 into law. The Asset Management Corporation of Nigeria (AMCON) Act of 2010 was amended in 2015 and 2019 respectively in other to strengthen the corporation's powers to recover bad loans acquired by commercial banks. In this article, we are going to at the major innovations introduced by Asset Management Corporation of Nigeria (Amendment) Act, 2021.