Six Commercial banks have made payments totalling N155.45 billion into the sinking fund of Asset Management Corporation of Nigeria (AMCON) within three years.
Access Bank, GTBank, United Bank for Africa (UBA), Fidelity Bank, FCMB Group and Sterling Bank made the payments between 2015 and 2017.
Data obtained from the banks’ annual reports showed that Access Bank paid the highest amount of N39.59 billion; N12.06 billion in 2015, N12.06 billion in 2016 and N15.47 billion in 2017.
It was followed by GTBank which paid N35.09 billion; N10.63 billion in 2015, N11.39 billion in 2016 and N13.07 billion in 2017, respectively.
UBA contributed N34.85 billion; N11.08 billion in 2015, N11.08 billion in 2016 and N12.69 billion in 2017.
NAN also reports that 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, while Sterling Bank contributed N12.38 billion, N4.13 billion in 2015, N4.04 billion in 2016 and N4.21 billion in 2017.
The Central Bank of Nigeria (CBN), on Jan. 1, 2011, signed an agreement with banks operating in the country to establish the AMCON sinking fund.
The agreement required the CBN to contribute N50 billion and the banks an equivalent of 0.3 per cent of their total assets as at the date of their audited financial statements, annually for ten years.
However, the contribution, a non-refundable levy on all banks in Nigeria, was increased to 0.5 per cent in 2013.
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 money from the fund is used to purchase Federal Government securities and the returns from the investment are redistributed among the contributing banks.
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.