Despite Economic Headwinds, AMCON Posts Impressive 2023 Financial Result

•Rakes in over N108 billion

Nume Ekeghe

Despite challenging macroeconomic conditions coupled with economic headwinds, the Asset Management Corporation of Nigeria (AMCON) achieved a remarkable triple-digit growth of 202 per cent from N34.730 billion in the previous year to N108.433 billion in 2023.

This was disclosed in a statement issued yesterday, by the Head Corporate Communications Department of the debt recovery agency of the federal government,  Mr. Jude Nwauzor.

A breakdown of the performance showed that AMCON, which is currently led by Mr Gbenga Alade as Managing Director/Chief Executive Officer achieved a Year-on-Year (YoY) growth in profit of 212 per cent, from N34.730 billion in the financial year, which ended on December 31, 2022, to N108.433 billion in the period ended December 31, 2023.

The report disclosed that fair valuation gains on Eligible Bank Assets (EBAs) increased to N40.9 billion in 2023, from a loss of N187.9 billion in 2022. Equity portfolio recorded 82 per cent growth in 2023 amounting to N43 billion, compared with N7.9 billion in 2022. The significant trading gains was as result of an improved performance in the stock market.

Interestingly, the Corporation achieved a favourable reduction in total liabilities, from N6.282 trillion in 2022 to N5.739 trillion in 2023, primarily due to repayments of the N500 billion Central Bank of Nigeria (CBN) loan. The Corporation also achieved 89 per cent achievement of its revenue budget in 2023 as the total recovery in 2023 stood at N125.2 billion.

A breakdown of the recovery showed that AMCON achieved N81.65 billion in collections from various obligors; N17.8 billion from share sales; N15.5 billion reinvestment income; N6 billion as proceed from sale of properties; N3.8 billion dividend income and N0.5 billion from rental income despite the country’s challenging economic environment, occasioned by the removal of subsidy and floatation of the naira.

The executive management of the Corporation led by Alade said AMCON was strategically positioned to continue with the positive trajectory achieved in the year 2023, with special emphasis on improved recoveries and efficient realisation of value from disposal of forfeited assets in furtherance of the Corporation’s mandate.