AMCON: Nigeria’s bad bank forever and ever?
AMCON has reached its 10 year limit.  Source: Stears Business

Nigerian financial pundits can’t agree on one thing—the perpetual existence of the Asset Management Corporation of Nigeria (AMCON).

Some understand and appreciate why Nigeria needs the asset management company, but many of them adamantly believe that continuing with the Corporation’s activities is a misuse of scarce financial resources.

Nigeria’s original requirement for AMCON shines through when we look at its effect on non-performing loans (NPLs). The Corporation stabilised the banking industry by buying bad loans. As of December 2014—four years after the government created AMCON, Nigeria’s NPL ratio was below 3% from an all-time high of 37% in 2009. 

But at what cost? 



The cost of reducing Nigeria's NPLs

AMCON mostly relies on taxpayers funds to

Don’t limit your understanding. Join the Premium community to continue reading.

Adesola Afolabi

Adesola Afolabi

Read Latest

The coronavirus vaccine is here: Was it made too quickly?

PREMIUM - 04 DEC 2020

No food for lazy man: The struggle for corporation tax in undeveloped economies

PREMIUM - 03 DEC 2020

Carbon vs Kuda: The experiment to improve banking for digital natives

PREMIUM - 02 DEC 2020

Iran’s oil exports under Biden and the impact on Nigeria

PREMIUM - 01 DEC 2020