By John Umeh
The Federal Government has formally directed the Asset Management Corporation of Nigeria (AMCON) to begin a phased shutdown process, marking the beginning of the end for an institution that has played a crucial role in stabilizing the country’s financial system for over a decade.
The directive, issued earlier this week, is part of broader fiscal and structural reforms aimed at reducing government involvement in debt recovery and asset management, and shifting the focus toward more sustainable economic strategies.
AMCON was established in 2010 in the wake of the banking crisis to take over non-performing loans and rescue struggling financial institutions. Over the years, the corporation has recovered trillions of naira in toxic assets and helped restore confidence in Nigeria’s banking system. However, with significant progress made in asset recovery and stabilization, government officials now say the corporation’s mandate has largely been fulfilled.
Speaking on the development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the decision aligns with the administration’s efforts to streamline public sector operations, reduce redundancy, and prioritize efficiency.
“AMCON has played its part and we acknowledge its achievements. However, it is time to transition and explore more market-driven approaches to managing financial system risks,” Edun said.
According to ministry sources, the shutdown process will be implemented gradually to ensure all existing obligations and recovery efforts are concluded responsibly. The government is expected to work closely with the Central Bank of Nigeria (CBN) and other financial stakeholders to ensure a smooth transition.
While some analysts have welcomed the move as a long-overdue policy shift, others warn that the shutdown must be handled with care to avoid disrupting ongoing recovery efforts and pending litigations involving major debtors.
Critics also emphasize the need for transparency during the shutdown process, citing concerns over the fate of AMCON’s remaining assets and the accountability of its financial dealings.
In response, the Ministry of Finance assured the public that an inter-agency task force will be established to oversee the closure, ensure continuity where necessary, and protect national economic interests.
As AMCON prepares to wind down operations, its closure signals a turning point in Nigeria’s approach to financial crisis management—ushering in a new era where private sector mechanisms may take center stage in resolving systemic risks.
