The Chairman of the House of Representatives Committee on Banking and Ancillary Institutions, Hon. Eze Nwachukwu Eze, has said that any serious conversation about winding down the Asset Management Corporation of Nigeria (AMCON) must begin with the reality of its over N4 trillion in outstanding debt.
He spoke at a recent stakeholders’ roundtable held at the Royal Institute for Training and Human Capital Development, Zuma Rock Resort in Niger State
Speaking on the theme, “Exit Strategy for AMCON: Policy Considerations and Implementation Plans,” Eze emphasized that the committee remains deeply committed to working with key stakeholders—including AMCON, the Central Bank of Nigeria (CBN), the Federal Ministry of Finance, and others—to draft legislation that ensures a smooth, internationally-aligned transition.
He was unequivocal in stressing that AMCON’s exit cannot be treated as a simple administrative matter. Rather, it represents a pivotal moment in Nigeria’s economic journey—one that demands careful planning, rigorous debate, and broad consensus.
Reflecting on AMCON’s origins in 2010, Eze recalled its establishment as a direct response to the global financial crisis and its local repercussions. By acquiring toxic assets and stabilizing failing banks, AMCON became a crucial bulwark against systemic collapse, safeguarding depositors’ funds and restoring confidence in the financial system. But as Eze pointed out, the question now is not whether AMCON should exit—its temporary mandate was never in question—but how and when that exit should occur in a manner that protects Nigeria’s economic stability.
He warned that a rushed or poorly thought-out exit could unravel years of financial repair, while a carefully executed, policy-driven wind-down would affirm Nigeria’s institutional maturity. The roadmap, he said, must be guided by key considerations—chief among them, the management of residual assets and liabilities. As unresolved obligations remain, it is critical that Nigeria avoids transferring risks back into the banking system or, worse, to the taxpayer. He urged policymakers to learn from other countries—such as Ireland, Malaysia, and the United States—that have successfully navigated similar transitions.
Beyond financial management, Eze pointed to the legal frameworks that underpin AMCON’s operations. As its enabling Act conferred wide-reaching powers to acquire and dispose of distressed assets, legislative adjustments will be necessary to maintain confidence and regulatory clarity in the aftermath of its exit. He also stressed the importance of institutional memory—ensuring that the hard-won lessons of the AMCON era, especially in areas like loan recovery and debtor behavior, are not lost but rather embedded into future financial policy and supervision.
However, he cautioned against calls for AMCON’s sunset that ignore the country’s wider macroeconomic realities. Nigeria’s financial system, he noted, still contends with mounting public and private debt, exchange rate volatility, inflation, and global economic shifts. Any exit strategy must take into account whether the current system can withstand future shocks without the need for a similar interventionist mechanism. If the answer is no, he argued, then this roundtable must also explore deeper, structural reforms to insulate the financial system from future crises.
Underscoring the legislative role in this process, Eze reaffirmed the National Assembly’s commitment to supporting all necessary reforms. He called for unity between the legislature, executive, and financial stakeholders to ensure that AMCON’s exit is inclusive, technically sound, and well-sequenced.
Adding to the conversation, AMCON Managing Director and CEO, Mr. Gbenga Alade, lauded the Corporation’s accomplishments. Flanked by the agency’s full executive team, Alade said AMCON has outperformed many of its global peers in terms of recovery rates, securing 89% in recoveries based on purchase price—a notable feat compared to Malaysia’s Danaharta at 58% and China’s AMC at 33%.
He noted that AMCON has recovered a total of N2.13 trillion to date, while also preserving thousands of jobs across the banking and related sectors. Through its Asset Management Partners (AMPs) program, the Corporation has also helped create hundreds of direct and indirect jobs, contributing to the federal government’s broader employment objectives.
Alade acknowledged that AMCON’s journey must, at some point, come to an end. For years now, he said, the Corporation has worked with international consulting firms to design a robust exit strategy—one that addresses funding gaps related to the Resolution Cost Fund, unresolved Eligible Bank Assets (EBAs), active litigation, equity divestments, and workforce transitions. He clarified that AMCON’s assets are not owned by the federal government but are collaterals pledged by obligors. Once debts are repaid, the assets revert to their original owners.
Importantly, Alade highlighted the challenges that still lie ahead—especially the actions of high-profile, politically connected debtors. He revealed that just 350 obligors account for over 80% of AMCON’s total debt portfolio, many of whom have hidden assets in offshore accounts, anticipating that the Corporation’s closure will allow them to evade accountability. He warned that allowing such debts to vanish into thin air would only burden the nation’s already strained finances.
Supporting these views, financial experts at the roundtable—including Professor Uche Uwaleke of Nasarawa State University and Mr. Oluseye Opasanya SAN of Olaniwun Ajayi LP—called on lawmakers to use their legislative authority to strengthen AMCON’s ability to recover outstanding debts. They urged the government to show unwavering political will, close legal loopholes that delay resolution, improve judicial support, and eliminate inter-agency bottlenecks that currently hinder the Corporation’s work.
The roundtable served as a sobering yet forward-looking dialogue about AMCON’s future. While its eventual exit is inevitable, the consensus was clear: it must not happen until every necessary safeguard is in place, every lesson learned is institutionalized, and every effort has been made to protect the integrity of Nigeria’s financial system.
