Shareholders of Nigeria’s leading banks have expressed growing concern as contributions to the Asset Management Corporation of Nigeria (AMCON) by tier-1 financial institutions skyrocketed to N393.03 billion at the end of the 2024 financial year.
The unprecedented increase has raised red flags about its potential impact on bank profitability and shareholder returns despite the banks’ dividends announcement.
According to financial disclosures reviewed for the period ending December 31, 2024, banks including; Access Holdings Plc, FBN Holdings Plc, Guaranty Trust Holding Company (GTCO), United Bank for Africa (UBA) and Zenith Bank collectively paid N393.03 billion which was significantly higher compared to N244.98 billion in the same period in 2023.
The figure represents a 292.7 per cent increase in mandatory contributions which stems from a recalibration of the AMCON levy formula, which ties annual charges to banks’ total assets and off-balance-sheet exposures.
