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AMCON’s intervention saved jobs in banking sector – Chike-Obi

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The Asset Management Corporation of Nigeria, AMCON, said its intervention in the banking sector saved the jobs of so many employees that would have lost their jobs in the banking sector.

Managing Director, AMCON, Mr. Mustapher Chike-Obi, who stated this weekend at the second Investors’ Forum organised by FBN Capital in Lagos, said: “Do we need all the bureaucracy to get our things done better? We should be result oriented. We must build roads whether with or without due process. We don’t have good roads in Nigeria.”

Chike-Obi explained that AMCON’s interventions in the banking industry was not to take over the banks but to save the jobs and investment of depositors.  “People thought we came to take over the banks, not knowing we intervened to prevent Nigerian banks from collapsing and helping depositors from losing their money. Also, our intervention helped 90 per cent of the employees in the banking sector from losing their jobs because these banks were in serious negative balance sheet. What we have accomplished now is to take their balance sheet to zero position, “ he said.

On the issue of power, Chike-Obi, said: “ I have been asking everybody who knows about power why we have a regulatory agency that set tariff for Nigerian power? It seems to me that in Nigeria today over 90 per cent of electricity is not regulated. It is not even generated and since diesel is unregulated, that means the power is largely unregulated in terms of tariff.

“Nigeria also seems to me to be one place in the world where you do not need an electricity tariff because if the tariff gets too high people can switch back to their generators and there is a corrective mechanism from too high energy prices.

“I bring this up because I look at all the preferred bidders or winners in Gencos and Discos and it struck me that I did not see a single one of them with genuine international financial partners. They all have good technical partners and they all have plans to raise money from Nigerian banks but I wonder looking at the quantum of money needed in the power sector, if the quantum of money can be raised locally without genuine international financial help.

“That is the question I do ask and am really concerned about it because power is very essential for this country. We need to know whether we should be setting types or be encouraging people that can generate, transmit and distribute power and then charge whatever they like because only in that I believe personally that we can get what is required.”

  • Glow

    Amcon’s intervention may have save jobs in banks, but has also in doing so, induced spiralling inflation! AMCON is spending money merely printed by CBN to do all that; that’s good recipe for inflation and that simply means that money was indirectly taken from our pockets (yours and mine) just to keep the ‘sacred cows’ in business. It is such a pity that you are celebrating such history!!!