Kayode Tokede

Amid rising operating expenses in the financial sector, seven big banks in the country spent an estimated N839.9 billion on Asset Management Corporation of Nigeria (AMCON) and Nigeria Deposit Insurance Corporation (NDIC) expenses in the nine months of 2025.

This represents about 38.4 per cent increase over N607.09 billion spent by the seven banks in the same period in 2024.   

The seven banks are: First Holdco Plc, Zenith Bank Plc, Guaranty Trust Holding Company Plc (GTCO), and  United Bank for Africa Plc (UBA),  Wema Bank Plc, Stanbic IBTC Holdings Plc, and Access Holdings Plc.

THISDAY analysis of the banks’ financial results showed that AMCON levied the seven banks N605.06 billion, in nine months of 2025, about 41.8 per cent increase when compared to N426.1billion in nine months of 2024, while Deposit Insurance Premium moved from N180.99 billion in nine months of 2024, up by 30.3 per cent to N235.9 billion reported in nine months of 2025.

Banking sector resolution cost represents the Corporation levy, which is applicable on the total balance sheet size of the Bank. The current applicable rate based on AMCON Act of 2015 is 0.5 per cent of total assets plus total off balance sheet assets.

Owing to the importance of the financial services sector, involving public funds, there is a need for buffers to protect public funds in case of bank failure or liquidation, hence, the need for deposit insurance.

Deposit insurance and AMCON levy are part of layers put in place to protect public funds and ensure the stability of the banking sector.

Deposit Insurance Premium is a statutory payment by deposit-taking banks that ensures that NDIC as an insurer guarantees the payment of deposits up to the maximum limit (Now N5 million) in accordance with its statute in the event of failure of an insured financial institution.

Typically, banks with the largest deposits pay the most premium to NDIC in terms of absolute numbers. However, some banks pay higher relative to their deposits.

Meanwhile, Access Holdings paid the highest AMCON levy in nine months of 2025, while Zenith Bank recorded the highest Deposit Insurance Premium in the period under review.

Access Holdings, with a total assets of N52.2 trillion as of September 2025, paid AMCON levy of N154.33 billion, up by 38 per cent from N112.22 billion reported in nine months of 2024. 

Also, Access Holdings paid NDIC Insurance Premium of N45.9999 billion in nine months of 2025, representing an increase of 28 per cent from N35.99 billion reported in nine months of 2024.

For Zenith Bank, it paid NDIC an estimated N54.22 billion in nine months of 2025, about 28 per cent increase over N42.4 billion declared in nine months of 2024.

The most profitable bank in Nigeria, however, declared AMCON levy of N143.8 billion in nine months of 2025, about 56 per cent increase from N92.2 billion paid in nine months of 2024.

Further findings by THISIDAY revealed that First Holdco joined other Tier-1 banks to incur high AMCON and NDIC levy in the nine months of 2025.

First Holdco’s AMCON levy closed nine months of 2025 at N110.83 billion, up by 41 per cent from N78.8 billion in nine months of 2024, its NDIC Insurance Premium jumped from N30.9 billion in nine months of 2024, an increase of 70 per cent to N52.6 billion in nine months of 2025. 

AMCON was established in 2010 in a bid to stabilize the Nigerian banking system by efficiently resolving the non-performing loan assets of the banks in the economy.

Currently, it is being funded by a combination of loan recoveries, contributions from the Central Bank of Nigeria (CBN), sales of pledged assets, and a sinking fund assessed to the banks.

The federal government established AMCON with a 10-year mandate in response to the mounting bad loans to prevent the banking sector from collapse. The AMCON Act 2019 (Amended) gives the corporation broader authority to pursue obligors for unpaid debts.

Additionally, helping eligible financial institutions efficiently dispose of eligible bank assets in compliance with the Act’s rules is one of the key objectives of the Act.

Initially, banks were required to pay 0.3 per cent of all assets into the sinking fund. In 2013 it was raised to 0.5 per cent  of total assets (and 0.3 per cent of contingent liabilities).

Stakeholders have expressed mixed feelings over 0.5 per cent AMCON levy on banks.

The Investment Banker & Stockbroker, Mr. Tajudeen Olayinka in a chat with THISDAY had said the operations of AMCON is long overdue.

“The fact that AMCON continues to place yearly levies on banks in the country in an endless manner, is an indication that AMCON is unable to pay its debts, and that its birth as a failure resolution option was unnecessary or absolutely misplaced at the time it was conceived.

“Those failed banks could have been better managed with more robust failure resolution options outside AMCON arrangement. And I blame the governor of CBN at that time, Sanusi Lamido Sanusi, for the error,” Olayinka explained.

On his part, the MD/CEO, Globalview Capital Limited, Mr. Aruna Kebira, said, “AMCON was established and was given powers to operate in its jurisdiction. Its life span would have also been determined by the laws that established it. It being around continuously is a function of the operational ambit and the powers vested on it by law. It will take the FGN to determine whether it has overstayed its welcome.”

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