The Chairman, House of Representatives Committee on Banking and Ancillary Institutions, Eze Nwachukwu Eze, has said the committee remains fully committed to partnering Asset Management Corporation of Nigeria (AMCON), Central Bank of Nigeria (CBN), Federal Ministry of Finance and other stakeholders to draft and refine legislation to smoothen the corporation’s exit, in line with international best practices.
Speaking yesterday, at the Stakeholders’ Roundtable with the theme ‘Exit Strategy for AMCON: Policy Considerations and Implementation Plans’ organised by the House Committee in Niger State, Eze asserted that the corporation’s exit could not be discussed without addressing the N4 trillion debt affecting it.
According to him, since AMCON’s establishment in 2010, it has served as an essential institutional mechanism in stabilising the Nigerian financial system.
In the wake of the global financial crisis and its local reverberations, AMCON provided a lifeline to banks drowning in toxic assets and non-performing loans, thereby safeguarding the integrity of the Nigerian financial architecture. Its mandate was clear and concise: to prevent systemic collapse, to safeguard depositors’ funds, and to stabilise the credit environment for sustainable economic recovery.
He 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 stabilisation 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 responsible, efficient and forward-looking manner. 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.”
The second issue, he noted, is the legal and regulatory framework. AMCON’s operations were supported by an enabling Act, which empowered it to acquire, manage and dispose of assets in a manner that serves national economic stability.
“As the corporation prepares to exit, relevant legislative adjustments must be considered to either repeal, amend or transition these powers in a manner that maintains market confidence and legal clarity.
“Third, the lessons learned from AMCON’s asset recovery and resolution strategies must be institutionalised. The AMCON era has revealed structural weaknesses in credit administration, loan recovery enforcement and debtor culture within our financial system. These lessons must not be allowed to fade with AMCON’s exit, but be embedded into future financial regulations, supervisory frameworks and banking practices.”
Warning those clamouring for AMCON sunset, Eze added: “Any conversation around AMCON’s sunset must consider the broader macroeconomic context. Nigeria’s financial system today faces many 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.”
He emphasised that the success of any exit strategy lies in the alignment between legislative action, executive policy and stakeholder cooperation.
Earlier, the Managing Director/Chief Executive Officer of AMCON, Gbenga Alade, who led the executive management team of the corporation to the event, said that before discussing the exit strategy, it was important to stress that AMCON had done well, especially when compared to other notable government-owned asset management corporations around the world. (Guardian)
