The Asset Management Corporation of Nigeria, (AMCON), an agency acting as a stabilizing tool for the nation’s financial system may soon go into extinction if the push for its liquidation by the Central Bank of Nigeria (CBN), Nigerian Deposit Insurance Corporation (NDIC) and Ernst & Young sails through, its managing director has said.
Ahmed Kuru, who confirmed this at a recent forum, said the agency was already in talks with CBN, NDIC and Ernest &Young in a bid to resolve the differences between them.
Kuru said: “We are working with the three institutions to tinker things a little and then at a certain point in time liaises with the National Assembly to draw a line.”
In the likelihood of things not working according to plans, Ripples Nigeria gathered that the managing director has requested that AMCON be given considerable time to sell off all the debts in its portfolio, adding that the “only wise thing to do at this stage was to dispose-off the outstanding debts before the closure of the body is considered.”
He added: “My suggestion will be to put all the remaining debt in one vehicle and fling the vehicle to anybody or firm that wants to buy with a considerable discount. At that stage maybe it would be wise to do that and then close AMCON.
“There are funds all over the world that are in search of such an opportunity. Then the contributions into the sinking fund from the banks, NDIC and CBN would over the period of two or three years depending on how the rates are adjusted be gradually cleared.”
If the proposed liquidation sails through, the nearly 10-year-old AMCON will wind-up its operations and inadvertently return the nation’s commercial banks to their precarious position prior to the establishment of the agency in 2010.