Shareholders want FG to wind up AMCON over N436.5bn levy paid by 7 banks in 2014

Shareholders have kicked against the N436.5 billion paid to the Asset Management Corporation of Nigeria (AMCON) by seven banks as banking sector resolution costs in 2024. A NAN correspondent who monitored banks’ 2024 audited financial statements posted on the Nigerian Exchange Group platform, reports that the seven banks paid N436.5 billion to AMCON in 2024. The figure represents a 158 per cent increase from the N276 billion paid to the corporation by the seven banks in 2023. GTCO Plc paid N36.66 billion against N27.31 billion paid in 2023, Zenith Bank Plc paid N92.2 billion against paid in 2023, and Access Holdings Plc paid N112.23 billion against N68.8 billion paid in 2023. Also, UBA Plc paid N71.91 billion in 2024 billion against N40.36 billion paid in 2023, First HoldCo Plc paid N74.87 billion, Fidelity Bank Plc paid N35.81 billion while Wema Bank Plc paid N12.79 billion in 2024.
NAN reports that AMCON was established in 2010 to stabilise the Nigerian banking system by efficiently resolving the non-performing loan assets of banks in the economy. The banking sector resolution cost (AMCON levy) is charged based on the corporation’s Act of 2015 at 0.5 per cent of the bank’s total assets plus total off balance sheet assets. Some of the shareholders, who spoke to the News Agency of Nigeria (NAN) in Abuja on Sunday, said that the levy had negative consequences on shareholders’ funds. Mrs Bisi Bakare, the national coordinator of the Pragmatic Shareholders Association, said that AMCON should have been wound down by now.
According to her, AMCON saw free opportunity and loopholes and keyed into it – the hard-earned money of investors. AMCON has overstayed its usefulness; hence, they should wind up. Even those debts that have been taken over by them, what has been the level of recovery? “It continued existence is more like a conduit pipe that has consequences on shareholders funds. AMCON should wind up and leave. The shareholders have been shouting in all fora that AMCON has overstayed; unfortunately, the government is not coming to our aid,” she said. Mr Moses Igbrude, the National Coordinator, Independent Shareholders Association of Nigeria, said that the AMCON levy on banks was another way of siphoning from the banking industry. He said that it was high time the corporation wound up and the levy stopped. ”AMCON was set up with a clear purpose and timeline, but “the Nigerian thing” happened. Those who are benefiting from it both directly and indirectly launched a campaign of extension of timeline through the National Assembly.
”What AMCON management can not do for 10 years, give them eternity they will not be able to do it because of vested interests. To be collecting AMCON levy from banks is another way of siphoning from the banking industry, and because of this free money AMCON will perpetuate itself forever,” he said.