The Assets Management Corporation of Nigeria (AMCON) has explained that its immediate-past managing director, Mr Mustafa Chike-Obi, was not sacked by the Presidency as some media reported, but that he completed his five-year tenure.
Moreover, his tenure has been hailed by analysts for the significantly impactful role he led AMCON to play in restoring the fortunes of some ailing banks and other corporate entities in the country.
Chike-Obi was previously a founder and managing partner of Madison Park Advisors, a financial service advisory and consulting firm in New Jersey, USA, which specialises in hedge fund and private equity investment advice.
He has also held senior positions in various Wall Street firms, including Goldman Sachs, Bear Stearns and Guggenheim Partners, among others before assuming the position of the managing director in AMCON in 2010.
Assessing the impact of AMCON in the last five years under Obi’s tenure, a banker, Mr Daniel Akintola, noted, “The AMCON, as a much-needed bad bank, was created to relieve our financial institutions of the crippling non-performing loans; recapitalise the banking industry; and do all these at a reasonable cost that will not adversely affect the economy. In assessing the corporation, therefore, I must say it has earned 90 percent pass mark. We must not forget what happened during the failed banks era and how it affected consumer confidence and reversed any gains Nigeria had made in getting more unbanked people to open accounts.”
The banker said: “In mopping up the toxic loans, I must say that AMCON has done exceedingly well and has kept the economy going. The new management must, therefore, capitalise on the gains of its predecessor by ensuring that recoveries are maximised and disposal of assets are handled efficiently.”
Analysts at Financial Derivatives Company (FDC) have also advised that retaining the on-going operations by AMCON will continue to serve as a pre-emptive strike against possible future upheavals in the banking industry.