You can’t discuss AMCON sunset with over N4trn outstanding debt –Lawmakers
The Chairman, House of Representatives Committee on Banking & Ancillary Institutions, Eze Nwachukwu Eze, has said that the committee remains fully committed to partnering with the Asset Management Corporation of Nigeria (AMCON), the Central Bank of Nigeria (CBN), the Federal Ministry of Finance, and other stakeholders to draft and refine legislation that smoothens the Corporation’s exit strategy in line with international best practices.
Eze said this last week at the stakeholders’ roundtable on the AMCON sunset strategy organized by the House of Representatives Committee on Banking and Other Ancillary Institutions held at the Royal Institute for Training & Human Capital Development in Niger State.
He recalled that since AMCON’s establishment in 2010, the Corporation has served as an essential institutional mechanism in stabilizing the Nigerian financial system. In the wake of the global financial crisis and its local reverberations, AMCON provided a lifeline to banks drowning in toxic assets and non-performing loans, thereby safeguarding the integrity of the Nigerian financial architecture. Its mandate was clear and concise: to prevent systemic collapse, to safeguard depositors’ funds, and to stabilize the credit environment for sustainable economic recovery.
He said, “The reality is that the wind-down of AMCON cannot and must not be viewed as a simple administrative closure. It represents a significant milestone in Nigeria’s economic evolution — one that requires careful thought, meticulous planning, and broad stakeholder consensus. An exit strategy that is rushed, poorly designed, or inconsistently implemented could undo years of financial stabilization work and expose the banking sector to systemic risks. On the other hand, a well-structured, carefully sequenced, and policy-aligned exit will serve as a testament to Nigeria’s institutional maturity and financial resilience.”
“The task before us, therefore, is not merely to discuss if AMCON should exit — that decision is embedded in its founding principles — but how and when it should exit in a manner that is responsible, efficient, and forward-looking. We must ensure that the outcome of this roundtable discussion provides actionable pathways and clear policy recommendations that address existing gaps, align stakeholder expectations, and guide future financial stability frameworks.
“As we contemplate the operational sunset of AMCON, several policy considerations must anchor our discourse. The first is the issue of residual assets and liabilities. A critical element of any exit strategy lies in how unresolved assets and outstanding obligations are managed post-AMCON. Learning from Global Experiences is vital. Nations such as Ireland, Malaysia, and the United States have confronted similar sunset scenarios for asset management corporations. Nigeria must leverage these lessons while considering our unique socio-economic and financial realities. Mechanisms must be developed to avoid transferring undue risks back to the banking system or, worse still, to the Nigerian taxpayer.
“The second issue is the legal and regulatory framework. AMCON’s operations were supported by an enabling Act, which empowered it to acquire, manage, and dispose of assets in a manner that serves national economic stability. As the corporation prepares to exit, relevant legislative adjustments must be considered to repeal, amend, or transition these powers in a manner that maintains market confidence and legal clarity. Thirdly, the lessons learned from AMCON’s asset recovery and resolution strategies must be institutionalized. The AMCON era has revealed structural weaknesses in credit administration, loan recovery enforcement, and debtor culture within our financial system. These lessons must not be allowed to fade with AMCON’s exit, but rather be embedded into future financial regulations, supervisory frameworks, and banking practices.”
Warning those who are clamouring for AMCON sunset, Eze added, “Any conversation around AMCON’s sunset must take into account the broader macroeconomic context. Nigeria’s financial system today faces a host of new and evolving challenges: rising public and private debt levels, foreign exchange volatility, inflationary pressures, and global financial realignments. As we plan for AMCON’s exit, we must ask are the buffers in place to withstand future shocks without the need for a similar interventionist body. If not, this roundtable should also address what long-term structural reforms are necessary to shield our financial system from the risks that birthed AMCON in the first place.
“Let me also emphasize that the success of any exit strategy lies in the alignment between legislative action, executive policy, and stakeholder cooperation. The National Assembly, through its oversight responsibilities, is committed to supporting all necessary legislative adjustments that will make this transition smooth and effective. Likewise, we look forward to working with the Central Bank of Nigeria (CBN), the Ministry of Finance (MOF), the Nigerian Deposit Insurance Corporation (NDIC), the Bankers’ Committee, and all relevant parties in ensuring that the roadmap for AMCON’s exit is inclusive, robust, and technically sound,” he concluded.
Earlier, Managing Director/CEO of AMCON, Mr. Gbenga Alade, who led the entire Executive Management team of the Corporation to the event in his remarks, said that before discussing the exit strategy, it was important to stress that AMCON has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.
The AMCON Boss informed that based on the purchase price, AMCON outperformed other Asset Management Corporations all over the world by achieving 89% in recoveries despite unique challenges associated with debt recovery in Nigeria. He said the Malaysian Danaharta, which is adjudged one of the best performing Asset Management Corporation’s only achieved 58%. The Chinese Asset Management Corporation, despite their stricter laws, achieved 33%.
According to him, AMCON has made recoveries in the sum of N2.13 trillion from inception to date, adding that the Corporation has also saved thousands of jobs both in the Banking industry and other related sectors. In addition, the Corporation’s Asset Management Partners (AMPs) initiative has created hundreds of direct and indirect jobs thus helping the federal government to reduce the level of unemployment in the country.
“We at AMCON are not oblivious of the fact that the Corporation is not created to remain in perpetuity. Therefore, over the past few years, we have been working with reputable consulting firms to come up with a robust exit plan/strategy. The plan which must take care of the funding gap as it relates to the Resolution Cost Fund, huge unresolved EBAs and litigation portfolios, disposal of assets, divestment from equity holdings, and other operational issues, as well as human resources.
“Mind you, the assets of AMCON do not belong to the Federal Government; rather, they are collaterals pledged by obligors at the point of obtaining the loan. Should obligors settle their obligations, these assets automatically revert to them. The highlighted proposed strategy, if properly implemented, will allow the Corporation to wind down in phases without sending the wrong message to the public.
“You will agree with me that the business of debt recovery is not an easy task, particularly in a clime like ours, where recalcitrant debtors borrow without any intention of repayment. You are aware that only 350 obligors make up over 80% of the total EBA portfolio of the Corporation. Some of these obligors are highly connected, politically exposed persons who operate in critical sectors of the economy. Most of these obligors have stylishly and carefully hidden their assets in BVIs offshore, with the belief that with the approaching sunset date of the Corporation, they will walk away free, and the debt will be added to the already overburdened debt exposure of the country.”
Both Prof. Uche Uwaleke, who is the Director, Institute of Capital Market Studies, Nasarawa State University, Keffi, and Mr Oluseye Opasanya, Principal Partner, Olaniwun Ajayi LP, in their presentations at the roundtable discussion, urged the committee to leverage their legislative powers to ensure that AMCON is strengthened by removing all impediments that make it difficult for AMCON to recover its outstanding debt.
They submitted that the government must have the political will to stand with AMCON at all times, block all loopholes in the AMCON Act that enable obligors to tie AMCON down in court, ensure radical judicial support in the discharge of AMCON-related matters, and obliterate all inter-agency bottlenecks, amongst others.
