AMCON: The Rescue Mission That Became an Endless Burden

“If the Banks Are Safe, End AMCON’s Burden Now.”

When the Asset Management Corporation of Nigeria (AMCON) was created in 2010, it carried the hopes of a nation teetering on the brink of a financial catastrophe. In the wake of the global financial meltdown, Nigeria’s banking sector had been battered by toxic loans, poor corporate governance, and weak regulatory oversight. The Central Bank of Nigeria (CBN), led by then-Governor Sanusi Lamido Sanusi, acted swiftly: AMCON was born to stabilize the system, buy up the bad loans, and rebuild trust.

For a time, it worked. AMCON’s intervention saved jobs, stabilized systemically important banks, and helped Nigeria avoid a full-blown economic collapse. It was, by all accounts, a necessary and commendable move.

But fast forward fifteen years—and the story has soured.

Today, AMCON is no longer seen as a lifesaver. Instead, it is perceived as a relentless burden on the very banks it once rescued. The annual AMCON levy, originally intended as a temporary solution, has ballooned into a permanent and rising cost. Every year, banks are compelled to contribute a portion of their total assets to sustain AMCON’s operations—regardless of their individual health or performance.

Except we are being deceived, both the Central Bank of Nigeria (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) have repeatedly declared that Nigeria’s banking industry is strong, safe, and resilient. These assurances are not casual remarks—they are official positions aimed at reinforcing public and investor confidence.

If these declarations are true—and there is no reason to doubt them—then the continued existence of AMCON as a heavy burden on the banks is unjustifiable. The banks have recovered. The industry has stabilized. The crisis that necessitated AMCON is over.

It is therefore an act of policy laziness and economic injustice to keep siphoning billions from healthy banks through annual levies to sustain an institution whose mission should have ended years ago. The truth is clear: a sound banking system, as CBN and NDIC affirm, has no business funding AMCON indefinitely.

Keeping AMCON alive under today’s conditions only raises uncomfortable questions: Are we being misled about the true state of the banks? Or is AMCON simply being used as a cash cow under the guise of financial safety?

Nigerians and investors deserve transparency—and the banks deserve relief.

It is time to end this chapter.

This levy now runs into billions of naira annually, quietly draining the lifeblood of the financial system.

The questions beg themselves: How long must Nigerian banks continue to fund AMCON’s existence?
Why should private financial institutions underwrite the operational costs of a government-created company indefinitely?

The original mission—to stabilize the banks and clean up toxic assets—has long been achieved. Nigerian banks today are stronger, better capitalized, and more sophisticated. Yet they are still shackled to a structure that seems designed less for emergency management and more for perpetual cash generation.

Beyond fairness, there are practical consequences:

• Banks are forced to absorb significant operational costs, impacting their ability to lend, innovate, and expand.
• Customers bear the indirect brunt through higher service fees and reduced access to credit.
• Investor confidence in the long-term policy environment is weakened, as “temporary” government interventions appear endless.

The contradiction is glaring. An institution that was established to support financial stability now risks undermining it by strangling growth and innovation. Worse still, there is no clear roadmap for an exit strategy. No defined timeline. No serious national debate on when, or how, AMCON’s heavy hand will finally be lifted.

Meanwhile, AMCON’s own performance has been mixed at best. Debt recovery has been sluggish. Operational costs have ballooned. Transparency remains a persistent concern. And yet, year after year, the banks are expected to pay—an unending price for a past crisis.

It is time to ask hard questions.
It is time to demand accountability.
It is time to craft a future where banks are allowed to thrive without carrying the weight of an obsolete intervention.

Nigeria’s banking sector has matured. So too must its policies.
The AMCON levy was a child of necessity. It must not become a monument to inertia.

“AMCON Has Become a Parasite on a Healthy Banking System.”

If we are serious about fostering a vibrant, globally competitive banking system, we must rethink outdated burdens. AMCON must either move towards self-sustainability, strategic winding down, or find innovative funding alternatives that do not punish the very institutions driving Nigeria’s economic future.

Until that happens, AMCON will remain a ghost of yesterday’s emergency—haunting today’s progress.

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