A Review of the Act
The Asset Management Corporation of Nigeria Act, 2010 (AMCON Act) was
recently signed into law by the President of the Federal Republic of Nigeria, Dr
Goodluck Ebele Jonathan on 19 July 2010. The Act creates an Asset Management
Corporation of Nigeria for the primary purpose of efficiently resolving the
problems associated with non-performing loan assets of Nigerian banks.
Stakeholders in the industry have lauded the passage of the bill as a long
overdue crisis-resolution mechanism for the seemingly beleaguered financial
sector of the Nigerian economy. The Asset Management Corporation of Nigeria
(AMCON) established pursuant to section 1 of the Act is charged with the
responsibility of acquiring the non-performing loans from banks and other
financial institutions, or as more appropriately termed under the Act, eligible
financial institutions (EFIs). Whereupon AMCON resolves through receiving the
underlining collaterals and filling the remaining capital inadequacy challenges
necessary to make the Nigerian economy stronger and viable.