Transitioning AMCON – The Choice Between Winding Down And Privatisation

Due to the global financial crisis and domestic events, the federal government of Nigeria, through the Central Bank of Nigeria, conceptualized the idea for the establishment of a body to prevent a looming financial crisis. Hence, the birth of the Asset Management Corporation of Nigeria (AMCON), was established by the Act of the National Assembly of Nigeria in July 2010, with an intended 10-year lifespan. The objective was to detoxify the banking system through the purchase of bad assets, non-performing loans, and liquidity injection into troubled banks. Its mandate includes: (i) assisting Eligible Financial Institutions (EFIs) in efficiently disposing of Eligible Bank Assets (EBAs); (ii) efficiently managing and disposing of EBAs or other acquired assets; and (iii) obtaining the best achievable financial returns on EBAs. To achieve these mandates, AMCON is empowered with a wide range of functions, including issuing bonds and other debt instruments, maintaining a