Our Intervention Not To Run Businesses- AMCON | Independent Newspapers Limited
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Money Market

Our Intervention Not To Run Businesses- AMCON

Posted: Jul 20, 2016 at 1:34 am   /   by   /   comments (0)


Asset Management Corporation of Nigeria (AMCON) said that it does not run any business as has been speculated in some segment of the public.

A statement from the Corporate Communications Department of the Corporation, which restated that AMCON’s intervention in the country actually prevented the collapse of so many businesses, maintained that AMCON is going about its mandate for which it was created by the federal government in 2010 to manage the huge Non Performing Loans (NPLs) in the banking sector.

AMCON has not in any way abdicated that assignment to ‘run businesses’ as perceived by some people.

“AMCON has never and will not run any business. But as facilitators, we encourage competent professionals to manage businesses. So it is important we correct this wrong perception in some quarters,” the statement added.

In furtherance of the Corporation’s responsibility of acquiring Eligible Bank Assets (EBAs) and putting them to economic use in a profitable manner, AMCON, the statement stated is in receivership of about 50 businesses and more than 180 businesses under enforcement.

According to the Corporation, these interventions have saved so many businesses from going under, meaning that AMCON’s involvements is in order and therefore cannot be faulted.”

Meanwhile, interbank interest rates rose to double digits last week closing above 22 percent due to scarcity of funds occasioned by treasury bills sales by the CBN and sale of FGN Bonds by the Debt Management Office (DMO).

Investigations reveal that interest rate on Overnight lending rose by 13.4 percent to 22.8 percent, while interest rate on Colateralised lending or Open Buy Back (OBB) also rose to by 11.8 percent to 20.8 percent.

According to Afrinvest analysts, “Next week, we expect money market rates to remain in the double digits. There is a net T-bills maturity of N128.0bn and a scheduled rollover of the same amount expected next Thursday.

We expect the auction to be oversubscribed as investors with unsuccessful bids at Wednesday’s DMO primary market auction redirect their attention to the T-bills auction considering the high stop rates at the previous auction. Thus, we think the Apex Bank may allot more than the offered amount.”