ACTIVITIES AND FUNCTIONS OF AMCON

The objects of the Corporation are:

1. To assist eligible financial institutions to efficiently dispose of eligible bank assets in
accordance with the provisions of the Act.
2. To efficiently manage and dispose of eligible bank assets acquired by the
Corporation in accordance with the provisions of the Act.
3. To obtain best achievable financial returns on eligible bank assets or other assets
acquired by it in pursuance of the provisions of the Act.
Section 5 of the Act goes further to list the functions of the Corporation as:
1. To acquire eligible bank assets from eligible financial institutions in accordance
with the provisions of the Act.
2. To purchase or otherwise invest in eligible equities on such terms and conditions
as the Corporation, with the approval of the Board of Central Bank of Nigeria may
deem fit.
3. To hold, manage, realize and dispose of eligible bank assets (including the
collection of interest, principal and capital due and the taking over of collateral
securing such assets) in accordance with the provisions of the Act.
4. To pay coupons on, and redeem at maturity, bonds and debt securities issued by
the Corporation as consideration for the acquisition of eligible bank assets in
accordance with the provisions of the Act.
5. To perform such other functions, directly related to the management or the
realization of eligible bank assets that the Corporation has acquired, including
managing and disposing assets acquired with the proceeds derived by the
Corporation from managing or disposing of eligible bank assets acquired by it.
6. To take all steps neccessary or expedient to protect, enhance or realise the value
of the eligible bank assets that the Corporation has acquired.
7. To perform such other activities and carry out such other functions which in the
opinion of the Board are necessary, incidental or conducive to the attainment of the
objects of the Corporation.
From the foregoing, it would seem that the intervention of the government through
AMCON in the purchase of toxic debts is to enable financial institutions to be replenished
with funds to further and enable financial transactions.
The powers of the Corporation are wide and include, but not limited to: isssue bonds or
other debt instruments as consideration for the acquisition of eligible bank assets;
maintain a portfolio of diverse assets including equities, fixed income bonds and real
estate; borrow or raise money, with or without the guarantee of the Central Bank of
Nigeria(including money in a currency other than the naira); initiate or participate in any
enforcement , restructuring , re-organisation, programme of arrangement or other
compromise.
A pertinent question to ask at this point is: how does the Corporation operate to achieve
the stated objectives and functions?
The Act expressly establishes a Board of Directors to carry out the functions of the
Corporation.

The Board of Directors consists of 10 members, and the minimum qualification for the
membership of the Board is possession of 10(Ten) years cognate financial experience at
a senior management level or such other relevant as may be prescibed by the Central
Bank of Nigeria.
It may be instructive to note that the Corporation shall have a Secretary appointed by the
Board who shall be a legal practitioner and has been so qualified for not less than ten
years.
Section 21 of the Act makes it mandatory for the Corporation to file Annual report to the
Ministry of Finance and the Central Bank of Nigeria of its activities during a financial year
not later than three months after the end of each financial year.