…End this drain on investors
By Seun Ibiyemi
Shareholders have expressed strong opposition to the ¦ 436.5 billion paid by seven Nigerian banks to the Asset Management Corporation of Nigeria (AMCON) in 2024, labelling the levy as a drain on investors’ returns and a sign that the corporation has overstayed its welcome.
In separate comments made to journalists in Abuja on Sunday, shareholders criticised the annual banking sector resolution cost, arguing that it has outlived its purpose and is now doing more harm than good to the financial system.
Mrs Bisi Bakare, National Coordinator of the Pragmatic Shareholders Association, did not mince words. She said AMCON should have already concluded its mandate, describing the continued collection of levies as an exploitation of investor resources.
“AMCON saw an opening and took advantage of it—they’re feeding off investors’ hard-earned money,” she said. “It has outlived its usefulness and should have wrapped up operations by now.
“Even for the debts they took over, what meaningful recoveries have they actually made? Their continued existence is starting to look like a pipeline draining shareholders’ funds.
“Shareholders have raised this issue on every possible platform. Unfortunately, the government appears unmoved and is yet to come to our aid.”
Echoing similar frustrations, Mr Moses Igbrude, National Coordinator of the Independent Shareholders Association of Nigeria, accused AMCON of becoming a permanent fixture in the system without justification.
“To keep charging this levy is just another way to bleed the banking industry,” he said. “AMCON was created with a specific mission and a clear exit timeline. But what we’re seeing now is the usual ‘Nigerian factor’ at play.
“People benefiting from this arrangement—both within and outside government—have mounted campaigns to extend AMCON’s tenure through the National Assembly.
“Let’s be honest: if they couldn’t meet their objectives in ten years, even eternity won’t help. The problem lies in the vested interests. The AMCON levy is just free money, and as long as it keeps coming in, they’ll keep finding reasons to stay.”
A review of the audited financial statements of the seven banks, published on the Nigerian Exchange Group (NGX) platform, confirms the staggering ¦ 436.5 billion paid to AMCON in 2024—a 158 percent increase from the ¦ 276 billion paid in 2023.
The banks that contributed to the levy include Guaranty Trust Holding Company (GTCO) Plc, Zenith Bank Plc, Access Holdings Plc, United Bank for Africa (UBA) Plc, First HoldCo Plc, Fidelity Bank Plc, and Wema Bank Plc.
According to AMCON’s establishing Act, revised in 2015, the annual levy is calculated at 0.5 percent of a bank’s total assets plus total off-balance-sheet exposures.
GTCO paid ¦ 36.66 billion in 2024, up from ¦ 27.31 billion in 2023. Zenith Bank’s contribution jumped to ¦ 92.2 billion. Access Holdings paid ¦ 112.23 billion, compared to ¦ 68.8 billion the previous year.
UBA’s levy rose to ¦ 71.91 billion from ¦ 40.36 billion in 2023. First HoldCo paid ¦ 74.87 billion, Fidelity Bank contributed ¦ 35.81 billion, while Wema Bank paid ¦ 12.79 billion.
Originally established in 2010, AMCON’s primary purpose was to stabilise the Nigerian banking sector by acquiring and resolving the non-performing loans threatening the system. While many acknowledge that it played a crucial role during the post-2009 financial crisis, growing voices within the investment community believe it has now evolved into a bureaucratic entity that is no longer serving the public interest.
As these shareholder concerns grow louder, calls for government review and eventual termination of the AMCON levy may gain momentum. Until then, investors fear that the burden of maintaining an obsolete institution will continue to fall squarely on their shoulders.