Shareholders are expressing their dissatisfaction against the N436.5 billion that seven banks have disbursed to the Asset Management Corporation of Nigeria (AMCON) as part of the banking sector’s resolution expenses for 2024.
Several shareholders voiced their worries, indicating that this payment adversely affects their investments.
Mrs. Bisi Bakare, the National Coordinator of the Pragmatic Shareholders Association, stated that AMCON should have ceased operations by now.
She claims that AMCON has taken advantage of loopholes in the system, using the hard-earned cash of investors. “AMCON has been around long enough, and it’s time for them to step aside,” she stated.
She further questioned AMCON’s effectiveness in debt recovery, asking, “What progress have they made in collecting the debts they took over?”
In her view, The ongoing involvement of AMCON is putting a financial burden on the shareholders, and it is now the right moment for them to step aside from this role.
Shareholders have expressed their concerns in various forums, indicating that AMCON has been in operation for an extended period without any intervention from the government, she noted.
Mr. Moses Igbrude, the National Coordinator of the Independent Shareholders Association of Nigeria, condemned the AMCON fee imposed on banks, describing it as a mechanism for extracting funds from the banking industry.
He emphasized that it is now necessary to dissolve AMCON and eliminate the associated fee.
“AMCON was established for a particular purpose and duration, but, as is often the case in Nigeria, circumstances have changed.”
“Those who benefit from it, both directly and indirectly, have started pushing for its time to be extended through the National Assembly.
“If AMCON hasn’t met its goals in ten years, extending its time won’t change anything because of the strong interests involved.
“Taking the AMCON fee from banks is just another way to take money from the banking industry, and this easy cash lets AMCON keep going forever,” he said.
According to reports from NAN, which looked at the 2024 financial statements of banks listed on the Nigerian Exchange Group (NGX), the seven banks paid N436.5 billion to AMCON in 2024.
This amount is a 158 percent increase from the N276 billion these banks contributed to the corporation in 2023.
The banks involved are Guaranty Trust Holding Company (GTCO) Plc, Zenith Bank Plc, Access Holdings Plc, United Bank for Africa (UBA) Plc, First HoldCo Plc, Fidelity Bank Plc, and Wema Bank Plc.
The AMCON levy, which covers the cost associated with resolving issues in the banking industry, is established at 0.5% of a bank’s total assets, including off-balance sheet assets, according to the Corporation’s Act of 2015.
In 2024, GTCO Plc made a contribution of N36.66 billion, an increase from N27.31 billion in 2023. Zenith Bank Plc contributed N92.2 billion, while Access Holdings Plc’s payment rose to N112.23 billion from N68.8 billion the previous year.
Moreover, UBA Plc’s contribution for 2024 amounted to N71.91 billion, up from N40.36 billion in 2023. First HoldCo Plc paid N74.87 billion, Fidelity Bank Plc contributed N35.81 billion, and Wema Bank Plc’s payment was N12.79 billion this year.
Established in 2010, AMCON was designed to stabilize Nigeria’s banking sector by effectively managing the non-performing loan assets of banks in the economy.