The Federal Government of Nigeria has commenced steps to shut down the Asset Management Corporation of Nigeria (AMCON) on Thursday, 22 May 2025.
Established in 2010 in the aftermath of the 2008–2009 global financial crisis, AMCON was created to acquire non-performing loans and rescue distressed banks in Nigeria.
Fifteen years later, the government believes the corporation has largely fulfilled its mandate.
The decision to wind down AMCON is rooted in broader fiscal reforms and a renewed commitment to prudent financial management.
Government officials argue that AMCON’s continued existence is no longer sustainable, especially as the current administration seeks to reduce public liabilities and encourage private-sector-led economic growth.
Despite the progress made in stabilizing the banking sector, the corporation still has over ₦4 trillion in outstanding debts.
In response, the federal government has inaugurated a new board for AMCON with a clear directive: intensify efforts to recover these debts and ensure an orderly wind-down process. AMCON’s Managing Director, Gbenga Alade, emphasized the need for judicial collaboration to fast-track over 3,000 pending recovery cases clogging the courts.
The shutdown, however, is not without concern.
Closing the corporation prematurely could pose risks to the recovery of trillions of naira still tied up in unresolved debts.
In particular, critics have highlighted issues of transparency and inefficiency within AMCON, suggesting that its exit offers an opportunity to reform how Nigeria handles systemic financial crises going forward.
Nevertheless, the federal government insists the transition is strategic.
It views the closure not as an end, but as a transition toward a more accountable and market-driven financial sector.
The newly constituted board is expected to oversee the final phase of AMCON’s operations and ensure that asset recovery efforts align with international best practices.
