Reps: We can’t discuss AMCON exit with over N4trn debt

The House of Representatives Committee on Banking and Ancillary Institutions has declared its commitment 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.

The chairman of the committee, Eze Nwachukwu Eze, said this at the stakeholders roundtable on the AMCON Sunset Strategy in Niger State on Thursday, April 17, 2025.

Eze recalled that since AMCON’s establishment in 2010, the corporation has served as an essential institutional mechanism in stabilising the Nigerian financial system.

The lawmaker 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.

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“We must ensure that the outcome of this roundtable discussion provides actionable pathways and clear policy recommendations that address existing gaps, align stakeholder expectations, and guide future financial stability frameworks.

“As we contemplate the operational sunset of AMCON, several policy considerations must anchor our discourse. The first is the issue of residual assets and liabilities.

“A critical element of any exit strategy lies in how unresolved assets and outstanding obligations are managed post-AMCON.”

Warning people clamouring for AMCON sunset, Eze added: “Any conversation around AMCON’s sunset must take into account the broader macroeconomic context.

“Nigeria’s financial system today faces a host of new and evolving challenges: rising public and private debt levels, foreign exchange volatility, inflationary pressures, and global financial realignments.

“As we plan for AMCON’s exit, we must ask are the buffers in place to withstand future shocks without the need for a similar interventionist body.

“If not, this roundtable should also address what long-term structural reforms are necessary to shield our financial system from the risks that birthed AMCON in the first place.”

Speaking, the Managing Director/CEO of AMCON, Gbenga Alade, said before discussing the exit strategy, it was important to stress that AMCON has done tremendously well, especially when compared to other notable government-owned Asset Management Corporations around the world.

The AMCON boss stated that based on the purchase price, 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%, while 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.

The Star