Shareholders Kick as Top Banks Remit ₦552.7bn AMCON Levy in Nine Months

Nigeria’s five tier-one lenders — Access Holdings Plc, Zenith Bank Plc, FBN Holdings Plc, Guaranty Trust Holding Company Plc (GTCO), and United Bank for Africa Plc (UBA) — paid a total of ₦552.72 billion to the Asset Management Corporation of Nigeria (AMCON) as banking sector resolution costs in the first nine months of 2025.

This represents a 41.65 per cent surge compared to the ₦390.2 billion contributed during the same period in 2024, according to figures extracted from the lenders’ unaudited financial statements.

The levy, which accounted for over one-fifth (21.35%) of the banks’ combined operating expenses of ₦2.589 trillion, has once again stirred controversy over its sustainability and impact on profitability.

The AMCON charge, introduced under the 2010 Act and later amended in 2015, is set at 0.5 per cent of a bank’s total assets and off-balance sheet items — a measure designed to help fund AMCON’s operations in cleaning up the financial system after the 2009 banking crisis.

Access, Zenith Lead Contributors

Access Holdings emerged the highest contributor, remitting ₦154.33 billion — a 37.5 per cent rise from ₦112.22 billion a year earlier. Zenith Bank followed closely with ₦143.84 billion, representing a significant 56 per cent increase from ₦92.20 billion in 2024.

FBN Holdings paid ₦110.83 billion during the period, while UBA and GTCO remitted ₦92.89 billion and ₦50.85 billion respectively, reflecting double-digit growth across the board.

Shareholders Demand AMCON Review

However, the sharp rise in payments has drawn the ire of shareholders and market observers, who insist that the continuous imposition of the levy has become a drag on banks’ earnings and shareholder value.

National Coordinator of the Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, described AMCON as “a drain on the financial system,” urging the Federal Government to review or scrap the levy entirely.

“AMCON has outlived its usefulness. Many of the toxic assets it manages did not originate from the banks now bearing the burden,” Okezie argued, adding that the funds could be better channelled into business expansion or dividend payouts.

Similarly, Mr. Sunny Nwosu, founder of the Independent Shareholders Association of Nigeria, lamented that the 0.5 per cent levy on total assets had constrained banks’ ability to reward investors.

“Shareholders are groaning under poor dividend returns while AMCON continues to collect huge levies from banks that are otherwise stable and compliant,” Nwosu said, calling on the Central Bank of Nigeria (CBN) to overhaul the existing funding framework.

AMCON Defends Policy

In response, AMCON maintained that the levy remains critical to maintaining financial system stability. The corporation noted that despite substantial progress, its mandate was “far from complete,” citing unresolved non-performing loans and pending debt recoveries.

Under the 2019 amendment to its Act, AMCON was granted broader recovery powers, including more aggressive asset disposals in partnership with financial institutions.

The agency warned that discontinuing the levy prematurely could weaken ongoing recovery efforts and potentially reintroduce systemic risks into the banking system.