We?ll put economy on sound footing ? Jonathan
...Constitutes AMCON board today
By UCHE USIM
Monday, August 30, 2010
The Board of the Asset Management Corporation of Nigeria (AMCON) is to be constituted today, President Goodluck Jonathan announced on Friday in Lagos. The President made this known at a special audience with executives of the Financial Sector held at the Dodan Barracks in Lagos.
The News Agency of Nigeria (NAN) recalls that AMCON came into being on July 19, when the President signed the enabling act into law.
The corporation was conceptualised as a resolution mechanism to stimulate the recovery of the financial system by acquiring non-performing loans from the banks and assisting them in improving their capital and liquidity.
Jonathan told the gathering that alongside AMCON, the CBN and Nigeria?s 24 commercial banks had established a sinking fund to contribute to the resolution of the non-performing loans in banks. He stated that while government tried hard to consolidate the country?s political achievement and deliver credible a free and fair election next year, it would remain focused on the realisation of economic growth and development.
?We have a better opportunity to put the economy, the real sector, financial and capital markets on a structurally sounder footing through a well coordinated effort,? he said. Jonathan said the macro-economy of the economy was remarkable in 2010 with the real GDP growth by 7.4 per cent during the first half relative to 5.9 during the same period in 2009.
He attributed the growth sustained growth in the non oil sector and improvement in oil production.
The President said the stock market has witnessed a recovery following a sustained slump in 2009
He said he has directed the National Economic Management Team to make job creation a priority and to provide regular update on the progress made. The President said specific policy measures and interventions to address the issue of multiple taxation would be announced before the end of the month.
The Minister of Finance, Dr. Olusegun Aganga said the event is part of the regular consultation by Government with stakeholders in the nation?s economy to fast track the economic recovery. He said Government was committed to creating conducive economic environment that will bring about job creations and create bettoer future for Nigerians.
The World Bank representative at the event, Mr Ismail Radwa commended the Federal Government for the banking reform initiated in 2009 which he said has brought about confidence in the sector. He said their recent assessment of the banking sector showed that there is no huge credit risk and there a lot of liquidity in the system.
Radwa, however, called for a synergy in the credit system among bank and that measures should be put in place to check stock management manipulation. The President, Manufacturing Association of Nigeria, Chief Kola Jamodu called for a concerted efforts by Government to make basic infrastructure work and to address the problems of insecurity, terrorism and kidnapping.
He said it costs a local manufacturer in Nigeria 40 per cent more to produce compare to other countries even in Africa. Jamodu urged the Government to fast track the passage of anti-terrorism and anti money laundering Acts pending before the National Assembly. Business mogul, Aliko Dangote, stressed the need to give priority attention to agriculture, small and medium scale enterprises as well as building of more Ports to ease the congestion in Lagos port.