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