To keep customers safe, AMCON dips into banks profit, removes N123.8bn

To ensure a safer banking sector, seven Nigerian banks were forced to pay over N123.8 billion into the account of Assets Management Corporation of Nigeria (AMCON) in 2021.

The amount is a 24.30 per cent increase from N99.6 billion paid in 2020.

The money put together is used to help pay liabilities incurred from acquiring Non-Performing Loans (NPLs) to keep the banking sector healthy.

The current applicable rate based on AMCON Act of 2015 is 0.5% of total assets plus total off-balance sheet assets.

AMCON was set up by the Federal Government in 2010 with a 10-year mandate due to rising bad loans and the need to save the banking industry from imminent collapse.

However, it was amended in 2019 to end in 2023, to further enable banks track debtors that are able, but unwilling or refusing to pay amongst other additional benefits.

The seven banks surveyed are First City Monument Bank (FCMB), Guaranty Trust Holding Company (GTCO), Zenith Bank, Wema, Unity, United Bank for Africa (UBA), Sterling bank and Stanbic bank.

Ripples Nigeria analysis showed that Zenith bank’s N37.9 billion was the highest amount paid among the banks surveyed.

This was followed by UBA’s contribution of N27.8 billion and GTCOs N21.9 billion.

Stanbic was made to pay N12.9 billion, while FCMB was surcharged N10.5 billion.

Sterling, and Wema bank paid N7.28 billion and N5.29 billion respectively to the AMCON fund.