AMCON Posts N108bn Profit in 2023
By Patience Ikpeme
The Asset Management Corporation of Nigeria (AMCON) announced a 212% increase in profits year-on-year. This growth, from N34.73 billion in 2022 to N108.43 billion in 2023, highlights AMCON’s strategic efforts and positive market conditions.
Several factors contributed to AMCON’s significant profit surge. A key driver was the substantial improvement in fair valuation gains on Eligible Bank Assets (EBAs), which rose from a loss of N187.9 billion in 2022 to a gain of N40.9 billion in 2023.
This positive shift reflects a more favorable economic climate and potentially indicates a stronger performing EBA portfolio.
AMCON’s equity portfolio also exhibited robust growth, recording an 82% increase from N7.9 billion in 2022 to N43 billion in 2023. This growth is likely attributed to a buoyant stock market, suggesting AMCON’s strategic investment decisions are yielding positive results.
The Corporation’s financial management also played a crucial role in its success. The corporation achieved a significant reduction in its total liabilities, bringing them down from N6.282 trillion in 2022 to N5.739 trillion in 2023. This decrease was primarily driven by the repayment of a N500 billion loan from the Central Bank of Nigeria (CBN), demonstrating AMCON’s commitment to fiscal responsibility.
AMCON’s debt recovery efforts also yielded positive results in 2023. The corporation recovered a substantial portion of its budgeted revenue, reaching N125.2 billion, which represents 89% achievement of its target. This revenue was generated through various channels, including N81.65 billion collected from obligors, N17.8 billion from share sales, N15.5 billion in reinvestment income, and asset disposals.
AMCON’s leadership, under the direction of MD/CEO Mr. Gbenga Alade, remains optimistic about the future. The corporation is strategically positioned to maintain its positive trajectory, with a focus on enhancing debt recovery efforts and efficiently realizing value from forfeited assets.
These measures will be instrumental in achieving AMCON’s core objectives and ensuring its long-term financial sustainability.
