By Peter OBIORA InvestAdvocate

Ijebu-Ode (INVESTADVOCATE) – The Asset Management Corporation of Nigeria has been described as a failed Entity for not playing the role of which it was set up.

Tunde Adeyemi, Financial Analyst and the Managing Director (MD) of DHTL made this affirmation Sunday in Ijebu-Ode Ogun State; South West Nigeria at the Capital Market Correspondents Association of Nigeria (CAMCAN) 2011 Workshop organised for Capital Market Journalist.

In his paper delivered and titled “Capital Market and Development, Adeyemi described Nigeria’s AMCON as failed Entity. “AMCON is not playing the role to which it was set up” he said.

According to him, it took the Market at least about two years before bringing AMCON and the system between then and now has changed.

“The system between then and now have changed, AMCON was supposed to be about stabilising the Market” he said.

Nobody should sell, they are to buy all the shares and acquire all the bad loans. This was what Chukwuma Soludo, former CBN Governor, put in his report and Agenda; should incase this thing fails, I will set up AMCON to stabilise the system” he said.

Adeyemi affirmed that for the last seven months, AMCON has taken loans from all the Banks and have not called a single Stockbroker to inform them of the development and verification of such Loans by the Brokers.

“AMCON is supposed to be a wonderful and innovative Corporation, but this is not the case” he said.

“Why we called for AMCON was there was a serious mass problem in the Capital Market and people were offloading at whatever level. Allover the world what they do is to stabilise by giving major organisations money; this is a kind of sovereign Market making; but here in Nigeria, the case is different” Adeyemi said.

He further affirmed that until the current issue plaguing the Nigerian Capital Market (NCM) is resolved, Nigeria will not make headway.

“Until the Capital Market is sorted out, this country will not make it; everywhere in world, 84% of what is developed in the economy comes from outside the economy, even in China; we have leading Fund Managers waiting and the key major area for their basis point is always the Capital Market. Either for Equities, Bonds or whatever financial product they have” he said.

As earlier reported, Mustapha Chike-Obi Managing Director (MD) of AMCON said last week in Lagos that the Corporation has acquired a total of 9,000 bad loans, worth N3.14 trillion in the past one (1) year.

According to him, 200 Companies took 80 percent (80%) of the Non-Performing Loans (NPLs) as the Corporation is committed to recouping all the funds expended.

Nigeria’s AMCON was established on the 19th July 2010, when Goodluck Jonathan, President of the Federal Republic of Nigeria signed the AMCON Act into Law.

AMCON was created to be a key stabilising and re-vitalising tool established to revive the financial system by efficiently resolving the Non-Performing Loan (NPL) assets of the Banks in the Nigerian economy.

This years CAMCAN workshop came with the theme “ Sustaining the Stock Market Recovery”.