AMCON, Nigeria’s institutional response to the global financial crisis, banking systemic meltdown and stock market crash in 2008, is finally turning the corner. Its operating loss has declined sharply (90%) following the recognition of the contribution of the banking industry levy and a strong grip on operating expenses growth which was lower than the average rate of inflation in 2017.
More importantly is AMCON’s contribution to the social good of Nigeria as against its financial viability. It has saved the country thousands of potential job losses and over 13,000 corporate casualties that would have been a fallout of the economic crisis.
As we head towards a possible sunset clause in 2023 or an extension, it is important to underscore the role of AMCON since its conceptualization by the CBN in 2009 and its management ever since till date.
We expect AMCON to report a financial profit in 2018/19 whilst playing its role as a financial system stabilizer. It is important to see the correlation between the broad economic growth and the profitability of bad banks in most economies. Therefore as the Nigerian economy recovers so also we expect AMCON to thrive.
In the attached slides the FDC Think Tank puts the 2017 AMCON financial report in perspective.
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