Shareholders groups have expressed mixed reactions over the continued debit of banks’ books in compliance with the Asset Management Corporation of Nigeria (AMCON) resolution funds.
The reaction is coming on the heels of the N211.6 billion incurred by banks as resolution costs in the nine months ended September 2021, according to data gathered and analysed by Daily Trust.
The amount is a 22.8 per cent increase when compared to N172.4 billion incurred in 2020.
Every Nigerian bank is required to contribute an equivalent of 0.5% of its total assets and contingent assets as at the preceding year-end to AMCON’s sinking fund in line with existing guidelines. It is non-refundable and does not represent any ownership interest.
This represents accrual for Banking Resolution Fund Levy in accordance with provisions of sections 74 and 77 of the Banks and Other Financial Institutions Act 2020.
