Home > BANKING > Total Of N981bn Contributed By Banks To AMCON’s Sinking Fund Since Inception – MD

Total Of N981bn Contributed By Banks To AMCON’s Sinking Fund Since Inception – MD

By COMFORT NJIONYE

The Managing Director of the Asset Management Corporation of Nigeria (AMCON), Ahmed Kuru has disclosed that banks have so far contributed N931bn to the sinking fund since inception.

The Central Bank of Nigeria (CBN) and the 24 banks operating had signed a Memorandum of Understanding (MoU) on the establishment of the banking sector resolution cost sinking fund for AMCON.

Further down the sinking fund arrangement, the CBN and each participating bank will contribute N50bn and an amount equivalent to 0.3 per cent of its total assets respectively as at the date of its audited financial statements, annually to AMCON for a period of ten years.

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Ahmed Kuru, who disclosed this in Lagos, added that during the 2016 financial year, banks contributed N136bn to the AMCON sinking fund.

Kuru however lamented that the forecast was that banks were going to grow at 20 per cent, which never came to pass.

He said: “In 2016, we had envisioned that the banks would have contributed about N288bn, but they contributed only N136bn. As a result what we did was just to service the interest of our loan from the CBN”.

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“We pray for improvement towards the contribution so that our losses would begin to go down.”

Speaking on the performance of the company in 2016, Kuru said, “In 2016, our total recovery was N134bn. Not all of them are cash. N86.9bn came from cash collection and some debtors that felt that they could settle some outstanding obligation through forfeiture of their assets”.

“So, assets forfeiture amounted to about N30.4bn, while N8bn came from sale of properties,” he said.

The Chief Financial Officer, AMCON, Olugbenga Ataiyero, who gave a breakdown of the account, noted that the group losses were reduced by N57bn to N352bn at the end of December 2016 from N295bn as at the end of December 2015.

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