Why it’s not simple to wind down AMCON now – Lawmakers

Chairman, House of Representatives Committee on Banking & Ancillary Institutions, Hon. Eze Nwachukwu Eze has said 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 […]

Chairman, House of Representatives Committee on Banking & Ancillary Institutions, Hon. Eze Nwachukwu Eze has said 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.

He spoke on Thursday at the Royal Institute for Training & Human Capital Development (Zuma Rock Resort) in Niger State during the Stakeholders’ Roundtable on the AMCON Sunset Strategy, which was organized by the House of Representatives Committee on Banking and Other Ancillary Institutions.

The theme was ‘Exit Strategy for AMCON: Policy Considerations and Implementation Plans.

He recalled that since AMCON’s establishment in 2010, the Corporation has served as an essential institutional mechanism in stabilizing the Nigerian financial system.

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According to him, AMCON with over N4 trillion outstanding debt cannot be wound down without following proper procedure.

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.”

Earlier, the Managing Director/CEO of AMCON, Mr. Gbenga Alade, who led the entire Executive Management team of the Corporation to the event in his remarks, stated that 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 billed/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.

Both Prof. Uche Uwaleke, who is the Director, Institute of Capital Market Studies, Nasarawa State University, Keffi, and Mr Oluseye Opasanya SAN, Principal Partner, Olaniwun Ajaiyi 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.