Senate Committee Oversight on AMCON Chair and Future Plans

The Senate Committee on Banking, Insurance and Other Financial Institutions has told the Asset Management Corporation of Nigeria (AMCON) to prepare a detailed report about its activities. This is ahead of the corporation's plan to wind down in 2030.

The committee wants the report to include AMCON's successes and any outstanding responsibilities since it started. This report should be presented to the National Assembly.

Adetokunbo Abiru, the committee's chairman, gave this order on Tuesday. This was during the screening of Lamido Yuguda, who was a former deputy governor of the Central Bank of Nigeria (CBN). He is being considered for the position of chairman of AMCON's board.

After the screening, the committee approved Mr. Yuguda’s nomination. They will send their report to the Senate to recommend his confirmation.

The push for a detailed report came from Niger East Senator, Sani Musa. He asked Mr. Yuguda, if confirmed, to start gathering a full account of AMCON’s activities, successes, and pending obligations before the corporation closes down.

Mr. Musa highlighted that AMCON was set up to handle problems from non-performing loans, struggling banks, and other financial issues. He added that AMCON's time frame is set to end in 2030.

“The issue I wish to raise is that AMCON was established to resolve challenges within the financial system, particularly non-performing loans, distressed banks and related financial obligations.

“It has a statutory lifespan and is expected to wind up around 2030. Looking at that timeline, there is a need for this committee to receive an up-to-date report on the status of AMCON.

“We need to know where the corporation stands today, what it has achieved since inception and what outstanding responsibilities remain before its expected sunset,” Mr. Musa said.

In response, Mr. Abiru expressed confidence that AMCON, under Mr. Yuguda’s leadership if confirmed, would take the committee's concerns seriously. He then instructed the nominee and AMCON Managing Director, Gbenga Alade, to prepare and submit the detailed report to the committee.

“I have no doubt that, in the not-too-distant future, the committee will receive a comprehensive response on the issues you have highlighted.

“We deliberately decided to keep today’s exercise brief because this is already the third time the nominee has appeared before us. We know him quite well, so today’s exercise has been more of a formal interaction,” the senator added.

AMCON was created in 2010 under the AMCON Act. This was part of the federal government’s response to the banking crisis that happened after the global financial meltdown in 2008. At that time, many Nigerian banks were struggling with large amounts of non-performing loans (NPLs), which threatened the financial system.

To prevent a major collapse, AMCON was set up as a “bad bank.” Its job was to buy toxic assets from commercial banks, recapitalize troubled banks if needed, and recover bad debts from key debtors.

By taking these troubled assets, AMCON helped to rebuild trust in the banking sector, improve cash flow, and allowed banks to start lending to businesses and individuals again.

Over the years, AMCON has taken on thousands of non-performing loans worth trillions of naira. The corporation has recovered a lot of money through selling assets, restructuring debts, and legal action. But it has noted that a small number of debtors still owe a big part of its total debt, with hundreds owing more than ₦4 trillion.

AMCON's work has also stirred public discussion. While many experts say AMCON helped save Nigeria’s banking sector after the financial crisis, others have criticized its long-term existence. They argue it has become a financial burden since banks keep putting money into the Resolution Cost Fund that supports its operations.

In April 2025, the House of Representatives Committee on Banking and Other Financial Institutions held a meeting. They discussed AMCON’s wind-down strategy with legislators, regulators, and industry leaders. They talked about how the corporation should finish its work while making sure unresolved debts and liabilities do not endanger financial stability.