The Genesis:
The Nigerian banking sector ran into financial crisis in Years
2008 and 2009 which was caused by both the global financial crisis
of Years 2007 - 2009 and local factors including the crash of the
stock market.
The Asset Management Corporation of Nigeria ("AMCON")
was established in Year 2010 by virtue of the Asset
Management Corporation of Nigeria (AMCON) Act,
2010 (the "Act")1 with a view to
ensuring stability in the banking and finance sector. The Act
empowered AMCON to purchase toxic assets or non-performing loans
("NPLs") from Nigerian banks so that these banks could
improve their balance sheet and liquidity, with a view to avoiding
the risk of failure which would have adverse effects on the
Nigerian economy. Thus, AMCON was that timeous measure which saved
the financial sector, the Nigerian economy, as well as citizens and
their businesses from the full impact of the global financial
crisis.
