- Access Bank, GTBank, United Bank for Africa (UBA), Fidelity Bank, FCMB Group and Sterling Bank made N155.45 billion payments into the sinking fund of AMCOn in the last three years.
With the last three years, six commercial banks have made payments totalling N155.45 billion into the sinking fund of Asset Management Corporation of Nigeria (AMCON) for investment related purposes.
According to the News Agency of Nigeria, the banks that made the payments were Access Bank, GTBank, United Bank for Africa (UBA), Fidelity Bank, FCMB Group and Sterling Bank. The payments were made between 2015 and 2017.
Breakdown of the payments
- Access Bank made the highest payment at N39.59 billion; N12.06 billion in 2015, N12.06 billion in 2016 and N15.47 billion in 2017.
- GTBank paid N35.09 billion; N10.63 billion in 2015, N11.39 billion in 2016 and N13.07 billion in 2017.
- UBA contributed N34.85 billion; N11.08 billion in 2015, N11.08 billion in 2016 and N12.69 billion in 2017.
- Fidelity Bank paid a total of N18.60 billion, being N5.94 billion paid in 2015, N6.16 billion in 2016 and N6.50 billion in 2017.
- FCMB Group accounted for N16.94 billion; N5.66 billion in 2015, N5.62 billion in 2016 and N5.66 billion in 2017.
- Sterling Bank contributed N12.38 billion; N4.13 billion in 2015, N4.04 billion in 2016 and N4.21 billion in 2017.
AMCON sinking fund
The sinking fund was established in 2011 after the Central Bank of Nigeria, CBN, signed an agreement with the commercial banks. The agreement required the CBN to contribute N50 billion and the banks an equivalent of 0.3% (later increased to 0.5% in 2013) of their total assets as at the date of their audited financial statements, annually for ten years.
The contribution is used to purchase Federal Government securities and the returns from the investment are redistributed among the contributing banks.
The fund does not represent any ownership interest, neither does it confer any rights or obligations (save to pay the levy) on the contributor.
The sinking fund has, however, attracted opposition from shareholders of many banks who have called on the federal government to scrap it to enhance shareholders return.
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