In 2023, the Asset Management Corporation of Nigeria (AMCON) reported a significant profit of N108.43 billion, marking a remarkable increase of 202 percent compared to N34.73 billion in the previous year, as disclosed by Jude Nwauzor, head of AMCON’s corporate communications department. Despite facing challenging economic conditions, AMCON has managed to achieve robust growth.
The impressive financial performance was driven by several key factors. One notable contributor was the substantial increase in fair valuation gains on eligible bank assets (EBAs), which rose to N40.9 billion in 2023 from a loss of N187.9 billion in the prior year. Additionally, the equity portfolio experienced substantial growth, reaching N43 billion in 2023, up from N7.9 billion in 2022, largely attributed to improved stock market performance.
Furthermore, AMCON successfully reduced its total liabilities from N6.282 trillion in 2022 to N5.739 trillion in 2023, mainly due to repayments of the N500 billion loan from the Central Bank of Nigeria (CBN). This reduction in liabilities underscores AMCON’s effective financial management strategies amidst economic uncertainties.
In terms of revenue, AMCON achieved 89 percent of its budgeted revenue target in 2023, with total recoveries amounting to N125.2 billion. The breakdown of these recoveries includes N81.65 billion collected from various obligors, N17.8 billion from share sales, N15.5 billion from reinvestment income, and N6 billion from property sales. Despite economic challenges such as subsidy removal and currency fluctuations, AMCON also earned N3.8 billion from dividend income and N0.5 billion from rental income during the period.
Looking ahead, AMCON’s executive management expressed confidence in sustaining its positive momentum into the future. They emphasized a strategic focus on enhancing recoveries and optimizing returns from the sale of forfeited assets, aiming to further bolster the corporation’s mission and operational effectiveness.
The management’s outlook underscores AMCON’s resilience and proactive approach in navigating volatile economic conditions while capitalizing on opportunities for growth and financial stability. With a robust financial foundation and strategic initiatives in place, AMCON remains poised to continue delivering value and achieving sustainable growth in the years ahead.
