The House of Representatives has cautioned that discussions around the exit of the Asset Management Corporation of Nigeria (AMCON) are premature, given the corporation’s outstanding debt of over N4 trillion.
Chairman of the House Committee on Banking and Ancillary Institutions, Eze Nwachukwu Eze, made the position clear yesterday at a stakeholders’ roundtable in Niger State. Themed “Exit Strategy for AMCON: Policy Considerations and Implementation Plans”, the event was convened by the House Committee to deliberate on AMCON’s future.
Eze noted that since its establishment in 2010, AMCON has played a critical role in stabilising Nigeria’s financial system. “In the aftermath of the global financial crisis, AMCON served as a lifeline to banks weighed down by toxic assets and non-performing loans,” he said. “Its intervention safeguarded depositors’ funds and helped prevent a systemic collapse.”
He stressed, however, that any plan to wind down the corporation must not ignore its current liabilities. “You can’t talk about an AMCON exit while N4 trillion in debt remains unresolved,” he said. “The wind-down cannot and must not be seen as a routine administrative closure—it marks a key moment in Nigeria’s financial journey and requires careful planning and consensus among stakeholders.”
Eze warned that a hasty or poorly structured exit strategy could undermine years of financial stability, while a well-planned exit would demonstrate Nigeria’s institutional maturity and economic resilience.
Highlighting key considerations, Eze pointed to the need for legislative review. He said AMCON’s exit must include amendments, repeal or transition of powers under its enabling Act to ensure legal clarity and market confidence.
He also underscored the importance of institutionalising the lessons learned during AMCON’s operations, especially in areas such as credit administration, loan recovery, and enforcement. “These insights must shape future financial regulations and banking practices, rather than vanish with AMCON’s closure,” he added.
On the broader economic landscape, Eze urged caution. “Our financial system still faces multiple headwinds—rising debt, currency volatility, inflation, and global realignments. We must ask: do we have the resilience to absorb future shocks without an AMCON-type intervention? If not, this roundtable must also explore long-term structural reforms.”
He concluded by stressing that the success of any exit strategy hinges on the alignment of legislative action, executive policy, and stakeholder collaboration.
Earlier in his remarks, the Managing Director/Chief Executive Officer of AMCON, Gbenga Alade, defended the corporation’s record. He said AMCON had performed creditably well when compared to similar government-backed asset management agencies around the world.
Alade acknowledged the need to plan for the future but maintained that AMCON’s contributions to Nigeria’s financial stability over the past decade should not be overlooked in any exit discussions.
