Banking
AMCON Acquires N3.7tr Bad Loans from Banks
**Pumps N2.2tr into 10 Banks
By Dipo Olowookere
Over 12,000 Non-Performing Loans (NPLs) from 22 banks worth N3.7 trillion have been acquired so far by the Asset Management Corporation of Nigeria (AMCON), Business Journal is reporting.
AMCON was created by Federal Government to be a key stabilizing and re-vitalizing tool aimed at resolving the non-performing loan assets.
According to the report, the sum of N2.2 trillion has been injected as financial accommodation to 10 commercial banks in order to prevent systemic failure in the banking sector. This has contributed in stabilising the financial system in Nigeria.
Records from AMCON also indicate that about N3.66 trillion of depositors’ funds were protected since the creation of the corporation during the 2008/2009 financial crisis while approximately 14,000 jobs were saved as a result of AMCON’s intervention in the banking sector.
Meanwhile, leading legal luminaries including the former Chief Judge of the Federal High Court, Justice I. N. Auta and the President of Court of Appeal, Justice Zainab Adamu Bulkachuwa have joined the campaign by the management of AMCON) in calling for a paradigm shift in debt recovery processes in Nigeria.
Such shift according to them would act as act as panacea, if indeed the Corporation were to meet its mandate of resolving its huge outstanding obligation.
Current AMCON management under the leadership of its Managing Director/Chief Executive Officer, Mr Ahmed Kuru, upon assuming office and reviewing the challenges as well as bottlenecks inhibiting recoveries mounted a strong campaign that the current practice where habitual and recalcitrant debtors are treated with kid gloves, especially by agencies of government would not help AMCON resolve these loans before its sunset date.
According to Justice Auta, the approach to debt recovery and resolution must change at this point in the life of AMCON especially going into 2018 and beyond because the Corporation came as a child of necessity at the time it was created with all the good intentions in the world to recalibrate the beleaguered economy of the country at the time.
In his words, “Nigeria witnessed the 2007 global financial crisis, which was caused by insolvency, illiquidity, poor corporate governance and outright financial crimes.
“However, with the creation of AMCON by the federal government, no bank has been liquidated, depositors’ funds are safe and no bank has been subject to collection queues.
“The financial crisis led to the depression in value of the securities created against these defaulting loans thereby leaving the banks with an unfortunate inability to recover their losses.
“The effect of such monumental exposure was that banks were unable to sustain the equilibrium of lending required to maintain a vibrant economy.
“This in turn led to higher interest rates and an inability to perform the bank’s primary functions of financial intermediation like the pooling of savings and lending.”
Explaining further, he said, “In addition to significant reduction in lending to customers, financial crisis created by non-performing loans can result in breakdown of interbank lending, which in turn leads to drastic drop in liquidity of banks and a consequent reticence or direct inability to advance loans to the broader public.
“Collectively, these factors create a vicious cycle resulting in a hike in interest rates; concomitant default and insolvency; volatility of currency values; a drop in investments and general stagnation of the economy among other crisis.”
Justice Auta, having enumerated the facts, argued that it is extremely important for all stakeholders, especially Judges to note the correlation between bank failure, which AMCON saved, and a large concentration of non-performing loans.
He added that Judges have critical role to play in the insulation of the macro-economy from fragmentation since most disputes that relate to banking, which AMCON currently shoulders are presented before them.
Describing the AMCON framework as “extremely complex” he said AMCON’s goal can only be accomplished if all stakeholders, especially the entire hierarchy of the bench appreciates the fundamental underpinnings of its regime.
Lending her voice to Justice Auta’s position, Justice Bulkachuwa in her own analogy argued that since the rise of the financial sector is tied to economic growth, Nigeria’s economy, the livelihood and wellbeing of the citizenry are inextricably related to finance. She said all over the world, whenever the economy goes into crisis, governments across the world intervene to stabilise the macro-economy, which AMCON did in the case of Nigeria.
But with what she described as “deliberate reluctance” of debtors to redeem their obligations to AMCON, Justice Bulkachuwa said: “Having realised deliberate reluctance of debtors to redeem their obligations to AMCON, it would seem that AMCON has limited options other than resorting to our courts to enforce its enormous powers towards debt recovery. To recover as much debt as possible within its defined lifespan, expediency is essential if AMCON is to achieve its value maximization and financial stability goals.”
Corroborating the position of the two distinguished Justices, Mr Kuru submitted that AMCON is currently indebted to the CBN to the amount of N4.7 trillion, which is more than half of the proposed 2018 national budget.
Aside that, more than 70 per cent of AMCON’s Eligible Bank Asset (EBA), portfolio is also locked in one form of litigation or the other meaning that without the support of the judiciary, AMCON cannot see the light of day.
On the back of that, he said there is also a rising number of appeals emanating from trial courts on AMCON cases, adding that at this stage in AMCON’s existence, expeditious determination of appeals brought before the courts remains key to AMCON’s ability to resolve all outstanding assets and prevent the undesired economic consequences of failure to recover the assets. The inability to resolve the debt he argued would have dire implications for the entire Nigerian economy.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, has said the new risk-based capital framework would serve as a critical anchor for financial system stability, ensuring that recent banking sector recapitalisation translates into real resilience and renewed investor confidence.
Mr Cardoso said this at the Chartered Institute of Directors, Nigeria, induction ceremony in Lagos on Thursday.
The CBN chief, represented by the Director of Banking Supervision at the apex bank, Mrs Olubukola Akinwunmi, charged directors to guide institutions through consolidation, strengthen governance frameworks, and rebuild stakeholder trust through transparency and accountability.
Mr Cardoso stated that the apex bank complemented recapitalisation with a series of regulatory measures aimed at strengthening governance and empowering directors across the banking system.
According to him, key among these are the Circular on Compliance with Insider Related Credit Limits (February 17, 2025), which reinforces prudential discipline by restricting preferential lending to insiders; the Corporate Governance Guidelines (2023), which define clear standards on board composition, independence, tenure, and responsibilities in line with global best practice; and the end of regulatory forbearance alongside the introduction of risk-based capital requirements to align capital adequacy with institutional risk profiles.
Others include stricter fit-and-proper criteria for directors to ensure only qualified individuals serve on boards, enhanced disclosure and transparency rules covering financial reporting and related-party transactions, and mandatory board evaluation and succession planning requirements to ensure continuity and stability.
He stressed that these measures were not punitive but enabling, providing directors with a stronger framework to exercise stewardship with discipline, foresight, and confidence.
He said, “The adoption of Risk-Based Capital Requirements represents a cultural shift in our financial system. Capital adequacy is no longer about size alone; it is about risk alignment, ensuring capital planning anticipates both current and emerging risks, strengthening frameworks for credit, market, and operational risk, taking responsibility for compliance without reliance on regulatory forbearance and promoting prudent expansion and discouraging reckless lending or overexposure.
“Risk-Based Capital Requirement embeds risk awareness into every strategic decision, ensuring that recapitalisation translates into genuine stability, entrenches the going concern status of our banks, and instils confidence by both the banking and investing public in the Nigerian banking system.
“Given the position of the banking system and the pivotal role it plays in the economy, this stance of the Central Bank of Nigeria is expected to reverberate across all sectors of the Nigerian economy with an elevation in the standards of corporate governance observed across corporations in Nigeria.”
Mr Cardoso urged directors to move beyond passive oversight to become active custodians of institutional stability, balancing profitability with prudence and ensuring that compliance is matched with strategic foresight.
He said, “As directors, your responsibilities extend beyond boardrooms. You are custodians of governance in a time when regulatory expectations are higher, requiring boards to align with prudential standards. Stakeholder trust must be rebuilt and sustained. Strategic foresight is essential as institutions adapt to technological disruption, global competition, and evolving customer needs.
“The central bank views directors as partners in ensuring that recapitalisation and regulatory reforms translate into stronger institutions, not just larger balance sheets.
“To our newly inducted directors, your induction today is not just ceremonial; it is a call to stewardship. You are joining a community dedicated to advancing corporate governance and ethical leadership. The choices you make in boardrooms will shape the future of Nigeria’s economy.
“The Central Bank of Nigeria stands ready to engage with you, to provide clarity, and to work collaboratively in building a financial system that is resilient, inclusive, and globally competitive. “
By Adedapo Adesanya
Nigerian-focused payment bank, OPay, is making plans for an Initial Public Offering (IPO) in the United States this year, as per Bloomberg on Friday.
The publication reported that the company is planning to list in the US and is seeking a valuation of about $4 billion, citing private individuals familiar with the process.
The company may sell the shares later this year, the sources said.
As part of the plans, OPay is working with Citigroup Inc., Deutsche Bank AG, and JPMorgan Chase & Co. to tidy up all it needs for the public offering of its shares.
OPay is one of Nigeria’s big three players that dominate retail payments as well as agent banking (POS), which is the largest volume segment in Nigeria. Others include PalmPay and Moniepoint. Of the big three, OPay and Moniepoint are unicorns (meaning they are privately held startups valued at over $1 billion).
Driven by its early adoption, scale, extensive distribution network, and high transaction volumes since it entered the Nigerian market in 2018, the Opera-owned fintech-oriented company boasts tens of millions of users and operates one of the largest agent networks in Nigeria, enabling widespread access to financial services, especially in underserved areas. Its strong presence in everyday financial transactions, ranging from transfers to bill payment, has made it one of the most visible and frequently used fintech platforms in the country.
OPay, founded by Chinese tycoon Mr Yahui Zhou, raised $400 million in 2021 at a valuation of $2 billion. The company was backed by SoftBank Vision Fund and Sequoia Capital, as well as Long-Z Capital, the venture arm of Chinese food-delivery giant Meituan. It was also supported by other investors like DragonBall Capital and 3W Capital.
The fintech earlier announced two funding rounds in 2019 — $50 million in June and a $120 million Series B in November.
OPay, with its latest move, joins Airtel Africa Plc in planning to sell its mobile money business’s shares for $4 billion.
By Aduragbemi Omiyale
If what is promised is achieved, shareholders of Access Holdings Plc will be the toast of others, as the financial institution is moving into its next phase after spending resources to expand its operations, capturing different markets.
The 2025 financial year marked a significant turning point in its corporate journey as it shifted from a growth model defined by scale to one increasingly anchored on value creation, efficiency, and earnings quality.
In the year under review, the company grew its pre-tax profit by 16.2 per cent to N1.01 trillion, underscoring its steady progression toward becoming a high-performing and resilient financial institution.
Net interest income rose to N1.36 trillion, while net fees and commission income recorded a particularly strong growth of 40.9 per cent to N585.1 billion, reflecting increasing diversification in revenue streams. Overall operating income after impairment grew by 23.9 per cent to N3.17 trillion.
At the same time, the firm improved its cost discipline, with its cost-to-income ratio declining to 51.7 per cent from 56.7 per cent in 2024. Returns also remained solid, with return on average equity at 18.4 per cent and return on average assets at 1.6 per cent, reinforcing the quality of earnings delivered during the year.
As for the balance sheet, it recorded significant expansion, driven by strong deposit mobilisation and sustained customer confidence, with total assets up by 24.3 per cent to N51.57 trillion, and customer deposits rising by 53.4 per cent to N34.56 trillion.
Shareholders’ funds rose by 15 per cent to N4.33 trillion, reflecting both retained earnings and continued investor confidence in the institution. This growth highlights not only the scale of its operations but also the deepening trust of customers, counterparties, and investors.
“Our 2025 performance reflects both the resilience of the Access franchise and the strength of the institution we have built over time. Despite a dynamic operating environment, we delivered strong earnings supported by diversified income streams, disciplined execution, and a continued focus on balance sheet optimisation.
“We have now entered a more deliberate optimisation phase, with a stronger emphasis on returns on capital, earnings quality, and long-term value creation,” the chief executive of Access Holdings, Mr Innocent Ike, said.
The operating environment during the year showed signs of gradual improvement, which supported performance. Nigeria’s economic growth strengthened to about 3.9 per cent, inflation moderated from elevated 2024 levels, and foreign exchange reserves rose above $45 billion. The NGX All Share Index gained over 51 per cent during the year, reflecting renewed investor confidence and stronger capital market activity. These developments contributed to improved capital flows and a more supportive backdrop for financial institutions.
While banking remains the core earnings driver, contributing about 97 per cent of total revenue, the Group continues to make measured progress in diversifying its income base. Its investment management and insurance businesses, including Access ARM Pensions and Access Insurance Brokers, provide stable and recurring income streams, while technology-led platforms such as Oxygen X Finance and Hydrogen Payment Services are strengthening its position in the digital financial services landscape.
The Group’s strategic direction is now increasingly defined by a shift from scale to value. Having built scale across markets and segments, management is focusing more deliberately on improving returns on capital, enhancing earnings quality and deepening cost discipline. This transition reflects a clear objective to build a more valuable institution capable of delivering consistent and resilient returns over the long term.
Looking ahead, Access Holdings expects macroeconomic conditions to continue stabilising, creating opportunities for credit expansion, increased transaction volumes, and higher levels of activity across the financial system. The Group intends to maintain its focus on disciplined execution, improved capital efficiency, and sustainable growth across its diversified platform.
“Africa remains one of the most compelling long-term growth frontiers globally. Our role is not only to participate in that growth, but to help shape and finance it.
“At Access Holdings, we have built an institution designed to endure, anchored on strong governance, disciplined execution, and a clear strategic direction. Our focus remains on delivering consistent, high-quality, risk-adjusted returns while building a financial institution that will stand the test of time,” Mr Ike stated.
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