Again, Shareholders Urge FG to Review AMCON’s Operations

Shareholders under the aegis of the Independent Shareholders Association (ISAN) have again called on the federal government to completely review the operations of the Asset Management Corporation of Nigeria (AMCON).

Speaking at a press briefing in Lagos during the weekend, the Coordinator Emeritus of ISAN, Sir Sunny Nwosu said, “As concerned domestic investors, our patriotism is not in doubt as we demand once again the complete review of AMCON to determine its relevance to the economy or totally abrogate the agency following the declining values of companies taken over by the corporation and the current national economic challenges.”

He disclosed that AMCON earned about N327.6 billion from 0.5 per cent charges on banks’ total assets on and offbalance sheet items imposed on nine banks between 2020 and 2021. He also disclosed, “As part of the quick intervention in the banking sector bad debts, by CBN through AMCON, the debt recovery agency equally received N125.9 billion from 12 commercial banks listed on the Nigerian Exchange as part of the Sector’s resolution funds in the first quarter of 2022. In the same period, AMCON bank charges increased by 29.5 per cent from N97.18 billion paid in the corresponding period of 2021 to N125.9 billion in the first quarter of 2022.”

He, however, said after 12 years of the agency’s operations, Nigerian shareholders have come to the conclusion that the funding of AMCON with levies from commercial banks’ cannot be continued because of its negative impact on returns on investment and the incapacitation of commercial banks to adequately intervene in the nation’s real sector.

“The fundamental of our argument is premised on the fact that AMCON was not set up by the banks, but by the Federal Government, which must take responsibility for its operations,” he explained.

According to him, AMCON is currently reported to have about N1.7 trillion worth of assets under litigation across the country, disclosing further that as at August 2022, the total recoveries so far by the corporation are pegged at about N1.4 trillion.

He noted that the poor recovery of the agency has prompted most stakeholders rush to ascertain the current value of the forfeited asset stocks, stating that their inquisition followed noticeable failed efforts made by organization to dispose the assets.

A Mutual fund (Unit Trust) is an investment vehicle managed by a SEC (Securities and Exchange Commission) registered Fund Manager. Investors with similar objectives buy units of the Fund so that the Fund Manager can buy securities that willl generate their desired return.

An ETF (Exchange Traded Fund) is a type of fund which owns the assets (shares of stock, bonds, oil futures, gold bars, foreign currency, etc.) and divides ownership of those assets into shares. Investors can buy these ‘shares’ on the

floor of the Nigerian Stock Exchange.

A REIT (Real Estate Investment Trust) is an investment vehicle that allows both small and large investors to part-own real estate ventures (eg. Offices, Houses, Hospitals) in proportion to their investments. The assets are divided into shares that are traded on the Nigerian Stock Exchange.

GUIDE TO DATA: Date:

All fund prices are quoted in Naira as at 17Nov-2022, unless otherwise stated.

Offer price: The price at which units of a trust or ETF are bought by investors. Bid Price: The price at which Investors redeem (sell) units of a trust or ETF.

Yield/Total Return: Denotes the total return an investor would have earned on his investment. Money Market Funds report Yield while others report Year- to-date Total Return. NAV: Is value per share of the real estate assets held by a REIT on a specific date.