By Emegwoako C. Paschal
Shareholders under the auspices of the Independent Shareholders Association (ISAN) have once again urged the federal government to conduct a thorough examination of the Asset Management Corporation of Nigeria’s operations (AMCON).
“As concerned domestic investors, our patriotism is not in doubt as we demand once again the complete review of AMCON to determine its relevance to the economy or completely abolish the agency following the declining values of companies taken over by the corporation and the current national economic challenges,” said Sir Sunny Nwosu at a press briefing in Lagos over the weekend.
He revealed that between 2020 and 2021, AMCON earned approximately N327.6 billion from 0.5 percent charges on banks’ total assets on and off-balance-sheet items imposed on nine banks.
“As part of the CBN’s quick intervention in the banking sector’s bad debts, the debt recovery agency received N125.9 billion from 12 commercial banks listed on the Nigerian Exchange as part of the Sector’s resolution funds in the first quarter of 2022,” he added. AMCON bank charges increased by 29.5 percent during the same period, from N97.18 billion in the first quarter of 2021 to N125.9 billion in the first quarter of 2022.”
However, he stated that after 12 years of operation, Nigerian shareholders have concluded that funding AMCON with levies from commercial banks cannot be continued due to the negative impact on returns on investment and the inability of commercial banks to adequately intervene in the nation’s real sector.
According to him, AMCON is currently reported to have approximately N1.7trillion in assets under litigation across the country, and the corporation’s total recoveries as of August 2022 are estimated to be approximately N1.4trillion.
He stated that the agency’s poor recovery has prompted most stakeholders to rush to determine the current value of the forfeited asset stocks, stating that their inquiry follows obvious failed efforts made by the organization to dispose of the assets.
He noted that shareholders are concerned because AMCON is gradually morphing into a failed government agency as a result of the corporation’s foray into the purchase of new non-performing loans from banks outside its original mandate, which currently stands at more than N16 trillion.
He stated that shareholders urged the federal government and the Central Bank of Nigeria (CBN) to respond to national systemic banking industry challenges through long-term financial sector bailouts.
