The Asset Management Corporation of Nigeria (AMCON) has announced a significant milestone in its mandate to stabilise the nation's financial system. The corporation has repaid approximately N3.6 trillion to the Central Bank of Nigeria (CBN) since it began operations in 2010.
A Decade of Financial Stabilisation and Repayment
AMCON's Managing Director and Chief Executive Officer, Gbenga Alade, disclosed this achievement during a media briefing held in Lagos on Wednesday. He explained that the repaid sum includes both principal and interest on the over N1.7 trillion initially borrowed from the CBN to fund the corporation's establishment.
Alade stated that the outstanding debt owed to the CBN currently stands at about N3 trillion. The total repayment to the CBN, which guaranteed AMCON's seed capital, is projected to reach around N6.6 trillion by the time the obligation is fully liquidated. This repayment is being facilitated through AMCON's recoveries and a sinking fund financed by a levy of 0.5 per cent on the total assets of Nigerian banks.
Record-Breaking Recovery Rate and Global Comparison
The CEO highlighted the corporation's exceptional performance in debt recovery. AMCON has achieved a recovery rate of over 87 per cent based on the balance at purchase, a feat it accomplished despite the well-documented challenges of debt recovery in Nigeria.
He provided a global context to underscore this achievement. The Malaysian Danaharta, often cited as a top performer, recovered only 58 per cent. China's Asset Management Corporation managed 33 per cent despite stricter laws. Only the Korean Asset Management Corporation (KAMCO) has outperformed AMCON with a near 100 per cent recovery rate, which Alade attributed to their aggressive, "brute force" approach towards obligors.
"Without sounding immodest, AMCON has done well, and we will not relent until all the outstanding debts are fully realised," Alade asserted.
Strategic Moves and Future Projections
To bolster recovery efforts, AMCON has engaged foreign asset tracers to locate assets hidden by obligors across the globe. The corporation's current executive team has also commissioned seasoned consultants to conduct a comprehensive audit review of all AMCON cases across various courts. Alade noted that the judiciary's leadership has shown understanding of the challenges these debtors pose.
Financially, AMCON reported a total revenue of N156.25 billion against operating expenses of N29.04 billion in the last year, resulting in a cost-to-revenue ratio of 19 per cent. For 2025, the corporation projects revenue to rise to N215.15 billion, with expenses estimated at N29.06 billion, which would lower the cost-to-revenue ratio to about 13.5 per cent.
Reflecting on AMCON's core mission, Alade reiterated that the corporation's intervention involved offloading toxic assets from banks and injecting fresh funds, a move that restored market confidence and ensured depositors' funds remained secure. He pointed out that, unlike AMCON which has a sunset clause, other global asset management bodies like the FDIC in the United States and KFW in Germany have transitioned into perpetual institutions.
