The Asset Management Corporation of Nigeria (AMCON) has received a sum of N125.9 billion from twelve commercial banks listed on the Nigerian stock market as part of the Sector Resolution Funds in the first quarter of 2022, analysis by Nairalytics shows.
According to the data collected by the research arm of Nairametrics from the financials of the listed banks, AMCON bank charges increased by 29.5% from N97.18 billion paid in the corresponding period of 2021 to N125.9 billion in the review quarter.
The twelve banks are Access, GCMB, Fidelity, FBN, GTCo, Stanbic IBTC, Sterling, UBA, Union, Unity, Wema, and Zenith Bank. The increase in AMCON charge is attributed to the impressive rise in the total assets of the banks. Notably, in the first quarter of 2022, the aggregate total assets of the banks stood at N61.23 trillion, representing 5.29% increase compared to the beginning of the year.
AMCON Gulps N125.9 Billion As Sector Resolution Funds From Nigerian Banks In Q1 2022
In the previous year, the total assets of the twelve banks had increased by a whopping N8.75 trillion, largely due to increased customer loans.
The fund is part of the requirement of the AMCON (Amended) Act 2015, which mandates banks to make contributions to a fund established by the Asset Management Corporation of Nigeria Act, effective from January 1, 2013.
Banks are required to contribute an equivalent of 0.5% of their total assets plus 0.5% of all contingent assets as of the preceding year-end to AMCON sinking fund in line with existing guidelines. This contribution is for a period of 10 years from 2013, it is non-refundable and does not represent any ownership interest.
A cursory look at the data from Nairalytics shows that the twelve banks have paid in excess of N1 trillion to AMCON between January 2017 and March 2022. It is worth noting that the charge is sometimes expressed as Sector Resolution Fund, AMCON sinking fund, or part of regulatory costs.