Shareholders seek complete review of AMCON operations

Shareholders seek complete review of AMCON operations

Shareholders, under the aegis of the Independent Shareholders Association (ISAN), have again called on the federal government to completely review the operations of the Asset Management Corporation of Nigeria (AMCON).

Speaking in Lagos at the weekend, the coordinator emeritus of ISAN, Sir Sunny Nwosu, explained that as concerned domestic investors, their patriotism is not in doubt as they demand once again the complete review of AMCON to determine its relevance to the economy or totally abrogate the agency following the declining values of companies taken over by the corporation and the current national economic challenges.

According to him, AMCON earned about N327.6 billion from 0.5 per cent charges on banks’ total assets on and off-balance sheet items imposed on nine banks between 2020 and 2021.

“As part of the quick intervention in the banking sector bad debts, by CBN through AMCON, the debt recovery agency equally 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.

“In the same period, AMCON bank charges increased by 29.5 per cent from N97.18 billion paid in the corresponding period of 2021 to N125.9 billion in the first quarter of 2022.”

He, therefore, noted that after 12 years of the agency’s operations, Nigerian shareholders have come to the conclusion that the funding of AMCON with levies from commercial banks cannot be continued because of its negative impact on returns on investment and the incapacitation of commercial banks to adequately intervene in the nation’s real sector.

“The fundamental of our argument is premised on the fact that AMCON was not set up by the banks, but by the federal government, which must take responsibility for its operations,” he explained.

According to him, AMCON is currently reported to have about N1.7 trillion worth of assets under litigation across the country, disclosing further that, as at August 2022, the total recoveries so far by the corporation are pegged at about N1.4 trillion.

He noted that the poor recovery of the agency has prompted most stakeholders to rush to ascertain the current value of the forfeited asset stocks, stating that, their inquisition followed noticeable failed efforts made by the organisation to dispose of the assets.

He, on behalf of shareholders, urged the federal government and Central Bank of Nigeria (CBN) to rise up to the national systemic banking industry challenges through a sustainable financial sector bailout.

“Shareholders seriously believe that the federal government floating of AMCON is a distraction that has prolonged the banking industry challenges and must be eliminated with huge funds intervention like in most developing and developed climes.

“Our position like we said before is that AMCON has overstayed its function and urged the CBN to suspend levying commercial banks,” Nwosu said.