About Us

The Asset Management Corporation of Nigeria (AMCON) is a state-owned enterprise established in 2010 by the Nigerian government to address the challenges of non-performing loans (NPLs) in the banking sector. It was created in response to the banking crisis that occurred in Nigeria around 2009, where many financial institutions were facing serious difficulties due to bad loans, economic downturn, and the global financial crisis.

AMCON’s primary role is to manage and recover NPLs by acquiring and restructuring bad debts from banks. It also helps to stabilize the financial system by ensuring that banks continue to operate smoothly. Through this process, AMCON buys distressed assets from banks and works on recovery, with the aim of reducing the negative impact on the economy and safeguarding the banking sector’s health.

The corporation’s objectives extend beyond just asset recovery. AMCON is also tasked with ensuring financial stability by supporting the smooth functioning of banks, enhancing the overall health of the economy, and facilitating the growth of businesses by resolving liquidity issues. It engages in various activities, such as debt restructuring, asset disposal, and business turnaround solutions.

AMCON is empowered by the government, which backs its operations, but it also operates as a corporation with a clear mandate and an independent structure. It plays a pivotal role in the Nigerian financial ecosystem, particularly during times of economic strain.

The corporation’s work, though, has faced scrutiny at times, particularly regarding the sale of assets and its approach to recovering loans. Some stakeholders have expressed concerns about its management practices, transparency, and the long-term effects of its interventions on businesses and the broader economy.

Historical Background

The Asset Management Corporation of Nigeria (AMCON) was established in 2010 as a response to a major banking crisis that occurred in Nigeria around the late 2000s. This crisis was a result of several factors, including the global financial downturn of 2007–2008, as well as risky lending practices and the exposure of Nigerian banks to bad loans. By the time the crisis hit, many banks were weighed down by non-performing loans (NPLs) that threatened the stability of the entire banking sector and, by extension, the Nigerian economy.

To address this looming threat and to restore confidence in the banking system, the Nigerian government took decisive action. In 2009, the Central Bank of Nigeria (CBN) intervened by carrying out a thorough assessment of the banks and subsequently found that a number of them had serious liquidity problems and high levels of bad debts. As a result, the government decided to create a specialized entity to take over the bad loans and distressed assets that were burdening the banks.

AMCON was created through the Asset Management Corporation of Nigeria Act, which was signed into law by the then-President Goodluck Jonathan on July 19, 2010. The primary objective of the corporation was to acquire the toxic assets of banks and provide liquidity to stabilize the financial system. This was aimed at preventing a complete collapse of the banking sector, which was seen as a major pillar of the country’s economy.

AMCON’s role was not just limited to acquiring bad loans but also extended to restructuring the distressed debts, selling off the non-performing assets, and helping to revive businesses in distress. The corporation was also tasked with ensuring that the banking system could resume normal operations, and it was empowered to engage in other financial activities necessary to restore stability.

The establishment of AMCON was a significant move, given that Nigeria had not previously had an institution dedicated to handling the massive scale of bad debt in the financial sector. It was seen as part of broader financial reforms aimed at modernizing the Nigerian banking sector and protecting it from future crises. As the corporation began its operations, it quickly became an important entity in the Nigerian economy, playing a pivotal role in cleaning up the financial system.

Despite challenges such as managing the vast amounts of bad debt and issues related to asset recovery, AMCON has remained a central player in Nigeria’s financial landscape. Its work helped to restore stability to the banking sector and contributed to the overall recovery of the Nigerian economy after the banking crisis. Over the years, AMCON has faced scrutiny over the management of its recovery process, but it has remained integral to the efforts to prevent future financial instability.

AMCON’s formation was one of the major steps taken by the Nigerian government to restructure the banking sector and ensure that the country would be better positioned to handle any future economic challenges.

Mision Statement

The mission of the Asset Management Corporation of Nigeria (AMCON) is centered around the efficient management, recovery, and resolution of non-performing loans (NPLs) and distressed assets within Nigeria’s banking system. AMCON aims to ensure the stability of the financial sector by acquiring bad debts from commercial banks and restructuring them in a manner that helps revive the economy and restore liquidity in the banking system. In fulfilling this mission, AMCON seeks to protect the depositors and creditors of distressed banks, contribute to the growth of the Nigerian economy, and strengthen the financial system to prevent future crises.

Vision Statement

The vision of AMCON is to be a world-class institution that is recognized for its efficiency and effectiveness in resolving distressed assets and managing financial challenges in the banking sector. AMCON envisions itself as a leader in the resolution of financial crises, contributing to the economic development of Nigeria by stabilizing the financial system, improving investor confidence, and fostering a more robust economic environment. Through its work, AMCON aspires to not only help banks and businesses recover but also to ensure a sustainable and resilient financial ecosystem for the future.

Mandate of AMCON

The mandate of the Asset Management Corporation of Nigeria (AMCON) is defined by its responsibility to stabilize and restructure the Nigerian financial sector, particularly in times of economic distress. Established under the AMCON Act of 2010, its core mandate is to address the issue of non-performing loans (NPLs) within the banking system, which had reached critical levels following the financial crisis of 2008-2009.

AMCON’s role includes the acquisition of bad loans from banks, the restructuring of distressed assets, and the sale or disposal of these assets with a view to recovering the funds tied up in them. This mandate ensures that banks continue to function effectively, preventing the collapse of financial institutions that could otherwise undermine economic stability. The corporation also aims to improve the liquidity of financial institutions by offloading their toxic assets, thus allowing them to resume normal lending activities and maintain confidence in the banking system.

In addition to this, AMCON is tasked with helping to prevent systemic financial crises by fostering the recovery of distressed companies and businesses. By doing so, AMCON plays a vital role in promoting financial stability, enhancing economic growth, and protecting the interests of both investors and depositors. The corporation is also empowered to provide strategic interventions, such as asset restructuring or facilitating mergers and acquisitions when necessary to secure the long-term viability of businesses impacted by bad debts.

AMCON’s broader mandate extends to promoting a sound, transparent, and resilient financial system in Nigeria. It is empowered by the Nigerian government to execute these functions with a view to ultimately returning a greater portion of the distressed assets to productive use while minimizing the burden on taxpayers. Through its activities, AMCON contributes to the broader goal of safeguarding the Nigerian economy from potential shocks and ensuring a healthier financial system capable of supporting sustainable economic growth.

Organizational Structure

The organizational structure of the Asset Management Corporation of Nigeria (AMCON) is designed to support its complex and multifaceted mandate of managing distressed assets, resolving non-performing loans (NPLs), and stabilizing the Nigerian banking sector. The structure is built to ensure efficiency in asset recovery, strategic decision-making, and corporate governance.

  • At the top of AMCON’s structure is the Board of Directors, which is responsible for overseeing the corporation’s overall strategic direction and ensuring that it fulfills its objectives in line with the mandates set out by the government. The Board is composed of a mix of experts from various fields, including finance, law, and business management, and its members are appointed by the Nigerian president, subject to confirmation by the National Assembly. The Board plays a crucial role in decision-making, governance, and setting long-term goals for AMCON.
  • Below the Board is the Managing Director/Chief Executive Officer (CEO), who is responsible for the day-to-day operations of AMCON. The CEO oversees the implementation of strategies set by the Board, and acts as the corporation’s chief representative in external engagements, ensuring that AMCON meets its objectives of stabilizing the banking sector and resolving distressed assets. The CEO reports directly to the Board.
  • Supporting the CEO is the Executive Management Team, which is made up of several senior executives who head key divisions within AMCON. These divisions include specialized departments that focus on asset management, recovery, legal affairs, financial control, risk management, and corporate communications. Each division plays a distinct role in ensuring the smooth operation of AMCON, handling everything from the acquisition and restructuring of distressed assets to overseeing legal proceedings related to loan recovery.
  • AMCON also has an Asset Management Group, which is specifically tasked with identifying, acquiring, and managing distressed assets. This group is critical to AMCON’s primary function of dealing with non-performing loans (NPLs) and ensuring their recovery or disposal. The Asset Management Group works closely with the legal and recovery teams to navigate the complexities of loan resolutions, debt restructuring, and asset sales.
  • Additionally, there are various support functions within AMCON that ensure its operations run efficiently. These include departments for human resources, information technology, internal audit, and compliance, which provide the necessary infrastructure to support AMCON’s operations across its various business units.

AMCON also has an important relationship with external stakeholders, including the Central Bank of Nigeria (CBN), the Ministry of Finance, financial institutions, and legal bodies. These external relationships are managed through dedicated liaison offices or channels within AMCON, ensuring that the corporation aligns with national policies and maintains effective communication with key partners.

The organizational structure of AMCON is thus designed to facilitate clear lines of responsibility, effective asset recovery, and compliance with the corporation’s core objectives of stabilizing Nigeria’s financial system and managing distressed assets efficiently.

Services Offered

The Asset Management Corporation of Nigeria (AMCON) offers a variety of services aimed at stabilizing Nigeria’s financial system, particularly in addressing the challenges posed by non-performing loans (NPLs) and distressed assets. The corporation’s primary function is to acquire bad debts from financial institutions, but it also provides a range of services that contribute to the broader goal of economic recovery and financial system stability.

  • AMCON’s key service is the acquisition of distressed assets from commercial banks. When banks face an overwhelming volume of bad loans that threaten their stability, AMCON steps in to purchase these non-performing loans (NPLs) and distressed assets. By doing so, AMCON frees up the banks’ balance sheets, restoring their liquidity and enabling them to resume normal operations. This service helps to prevent the collapse of financial institutions and fosters confidence in the banking sector.
  • In addition to asset acquisition, AMCON also provides debt restructuring and management services. Once it acquires distressed assets, the corporation works with the borrowers to restructure the debt in ways that facilitate recovery. This could involve extending repayment terms, reducing the principal, or other forms of debt rescheduling. The goal of this service is to ensure that businesses remain viable and can continue operating, rather than defaulting or shutting down, which could have broader negative impacts on the economy.
  • Another important service provided by AMCON is the sale and disposal of distressed assets. After acquiring non-performing loans or distressed businesses, AMCON works to either recover the debts or sell the assets to third parties. This process includes managing the sales of these assets in a manner that maximizes value, whether through public auctions, private sales, or other mechanisms. AMCON’s role in asset disposal helps reduce the burden on the financial system and recovers funds that can be reinvested in the economy.
  • AMCON also offers financial support and turnaround services for struggling businesses. In some cases, the corporation provides liquidity support to businesses, allowing them to stay afloat while they work on restructuring their operations. This service is essential in helping businesses navigate difficult financial periods, avoid liquidation, and ultimately return to profitability.
  • Another significant service AMCON offers is facilitating the resolution of systemic financial crises. During periods of economic instability or when there is a significant number of distressed banks, AMCON acts as a crisis management tool for the government. By taking on bad loans and assisting in the resolution of banking sector crises, AMCON helps maintain financial stability, ensuring that the wider economy is not severely impacted by the failure of financial institutions.
  • Furthermore, AMCON engages in legal and regulatory interventions. The corporation has a legal department dedicated to managing the legal aspects of asset recovery, enforcing debt collection, and ensuring compliance with Nigerian laws and regulations. AMCON often works with the judiciary and law enforcement agencies to recover debts, repossess assets, and resolve disputes between creditors and borrowers.
  • Finally, AMCON also provides advisory services to both private and public institutions. This includes offering guidance on financial restructuring, asset management, and corporate governance to ensure that businesses and financial institutions operate effectively and sustainably. Through these services, AMCON contributes to strengthening Nigeria’s financial infrastructure and enhancing the overall resilience of the economy.

In summary

AMCON’s services are designed to help resolve distressed assets, stabilize the banking sector, support businesses in financial trouble, and ultimately contribute to the overall health and growth of the Nigerian economy.