The Asset Management Corporation of Nigeria has said that it has injected a total of N5tn to rescue the nation’s financial sector and save the economy.

A statement by the corporation, made available to our correspondent on Tuesday, quoted the Chairman, AMCON, Alhaji Kola Belgore, as saying this at the maiden edition of the Chartered Institute of Stockbrokers’ Conference in Abuja, on Tuesday.

According to him, the funds were injected to save the financial sector in Nigeria from complete collapse.

Belgore, however, noted that the bulk of the funds used to clear the bad loans incurred by corporations and individuals was mainly from its coffers. The funds, he said, were injected into the hitherto ailing banking sector in Nigeria.

Specifically, he said that the recent intervention of AMCON in writing off the margin loans incurred by some operators in the capital market, which was primarily responsible for the downturn in the market some three years ago, was a major milestone achieved by AMCON.

Belgore argued that the decision of AMCON to intervene in the debt situation in the capital market was strategic to the smooth running of every other aspects of the Nigerian economy.

He said, “Virtually all non-performing loans in the books of the banks have been mopped up by AMCON. One major sector outstanding in AMCON’s intervention was the capital market. If all sectors are cleansed up and the capital market is left out, the problem in the economy will persist.

“Though AMCON is owned 50 per cent each by the Central Bank of Nigeria and the Federal Ministry of Finance, AMCON paid off the margin loans owed by the capital market to the banks.”  

“Today, the margin loan saga is behind us. It is completely written off”.

He, however, hinted that the decision to intervene in the capital market was a primary decision of AMCON, given the importance it attached to the role of the market in economy growth.

Nevertheless, Belgore confirmed claims by regulators and operators of the capital market. He said, “Now, the capital market is alive, because all bailed out companies may soon begin find their ways back to the market to list their shares.”

The Federal Government had, last Monday, announced a N22.6bn forebearance package for 84 stockbrokers, who were affected by the margin trading loans.

A top official of the government said the fresh measures would enable it revive the capital market as well as play a vital role towards the economic transformation of the current administration.

The official explained that the Federal Government could no longer watch the sluggish recovery of the capital market since the stock exchange was essential to its economic transformation agenda.

Source: Punch (written by Udeme Ekwere)