Former Nigerian President, Chief Olusegun Obasanjo, has underscored the critical role of banking in the growth and development of any economy saying the reforms of the banking sector during his tenure helped create strong financial institutions that could withstand a recession.
Obasanjo, while presenting the Asset Management Corporation of Nigeria (AMCON) with the Special Recognition and Commendation Award for Excellence in Banking, at the BusinessDay Banking Awards 2017 in Lagos at the weekend, said it would have been difficult for anybody to predict what would have happened to the banking sector in Nigeria because of the way financial institutions were being run.
According to him, the banking reforms introduced during his tenure “did not only change the game but stabilised the sector.”
He said the reform in the banking sector also created strong bank institutions that are now ranked alongside all such institutions around the globe.
Obasanjo, who was the Special Guest of Honour at the occasion, while delivering his address noted that the gains the banking industry in the country was reaping remained a direct result of the banking reform his administration started with the then Central Bank of Nigeria (CBN) governor, Prof. Charles Chukwuemeka Soludo, who pruned down the number of banks in Nigeria from 89 to just 25 and also increased their share capital.
He said he was proud of that policy decision given the fact that Prof. Soludo did so as an economist and not a banker.
When AMCON was created by the Federal Government in 2010, it acquired over 13, 000 toxic loans worth N3.7 trillion from 22 banks and injected N2.2 trillion as financial accommodation to 10 banks in order to prevent systemic failure.
This intervention helped stabilise the financial system as about N3.66 trillion of depositors’ funds and interbank takings were protected and approximately 14,000 jobs saved.
READ ALSO: World Bank: We have N8.5bn investment across Nigeria
In spite of the economic challenges in the country, AMCON within the year in review recovered N716.1 billion from obligors of which cash and assets accounted for 45 per cent and 55 per cent respectively.
It would be recalled that AMCON, under the leadership of Mr. Ahmed Kuru, Managing Director/Chief Executive Officer within the year in review made remarkable improvements that led to aggressive recovery of the nation’s assets from recalcitrant debtors.
In 2016, AMCON against all odds secured a number of high-profile court orders that compelled it take over a number of businesses from debtors.
The government agency also disposed a number of the assets in its portfolio.
BusinessDay newspapers Publisher, Mr. Frank Aigbogun, said that agencies, regulators, microfinance banks, deposit money banks, investment and merchant banks that were recipients this year were rewarded because they made excellence and dedication to quality delivery the core of their operations in 2016 financial year.
Other institutions that were honoured alongside AMCON at the awards night include the Nigeria Deposit Insurance Corporation (NDIC), Union Bank, United Capital, Coronation Bank, Zenith Bank, First City Asset Management Plc, Stanbic IBTC, Infinity Trust Mortgage Bank and Jaiz Bank.
