Amid surging operating expenses across Nigeria’s financial sector, seven major banks collectively paid an estimated N839.9 billion in AMCON and NDIC charges between January and September 2025.
This marks a sharp 38.4% increase from the N607.09 billion paid during the same period in 2024.
The banks include First Holdco Plc, Zenith Bank Plc, Guaranty Trust Holding Company Plc (GTCO), United Bank for Africa Plc (UBA), Wema Bank Plc, Stanbic IBTC Holdings Plc, and Access Holdings Plc.
A review of their financial statements shows that AMCON levied the banks N605.06 billion in the nine-month period of 2025—up 41.8% from N426.1 billion in 2024. Deposit insurance premiums paid to the NDIC also rose by 30.3%, increasing from N180.99 billion in 2024 to N235.9 billion in 2025.
The banking sector resolution cost—AMCON’s levy—is charged at 0.5% of banks’ total assets plus off-balance-sheet assets in line with the AMCON Act 2015. The levy and NDIC insurance premium serve as safeguard measures to protect depositors and maintain stability in the financial system.
Deposit insurance is a statutory obligation that ensures the NDIC can guarantee deposits up to N5 million in the event of a bank failure. Banks with larger deposit bases typically pay the highest premiums, though some contribute more relative to their deposit size.
Access, Zenith Lead in Levies Paid
Access Holdings emerged as the highest payer of AMCON charges in 2025, reflecting its asset base of N52.2 trillion as of September. The group paid N154.33 billion—38% higher than N112.22 billion in 2024. Its NDIC premium also rose 28% to N45.99 billion in 2025.
Zenith Bank recorded the highest NDIC insurance premium at N54.22 billion, representing a 28% rise from N42.4 billion in the previous year. The bank’s AMCON levy also surged by 56% to N143.8 billion from N92.2 billion in 2024.
First Holdco also saw substantial increases, paying N110.83 billion as AMCON levy in 2025—up 41% from N78.8 billion in 2024. Its NDIC premium rose even more sharply by 70%, climbing from N30.9 billion to N52.6 billion within the same period.
Background: AMCON’s Role and Rising Concerns
AMCON, established in 2010 to stabilise the banking sector by taking over toxic assets, is funded through loan recoveries, CBN contributions, asset sales, and banks’ mandatory sinking fund payments. Initially set at 0.3% of total assets, the levy was increased to 0.5% in 2013.
Despite its mandate, analysts remain divided over AMCON’s continued operation.
Investment banker and stockbroker Tajudeen Olayinka argued that ongoing levies signal AMCON’s inability to repay its debts and questioned its relevance, describing its establishment as “misplaced.”
On the other hand, Aruna Kebira, MD/CEO of Globalview Capital Limited, noted that AMCON operates strictly within the powers granted by law. Any decision on whether it has overstayed, he said, lies with the federal government.
The debate continues as banks grapple with rising regulatory costs that further strain already ballooning operating expenses.
