Functions of Asset Management Company of Nigeria (AMCON)

Among those requirements, was the need for a strong legal framework,, including adequate corporate governance structure, as well as operational autonomy and effective judicial process.

The question now arises, how does the assert management company of Nigeria functioned in order to achieve its aims? The Act, which established the assert management company of Nigeria has spelled out clearly its functions and duties.

Functions of Asset Management Company of Nigeria
The assert management company of Nigeria is assigned with a number of functions, that will help the company achieve its goals and objectives. In this article, we are going to look at quite a number of them together.

1. Assists Eligible Financial Institutions
The assert management company of Nigeria is known for its responsibility of assisting eligible financial houses to carry out some of their duties. It is the work of the assert management company of Nigeria to ensure that, these financial institutions carry out their functions effectively in order to achieve their aims and objectives.

Among some of those functions of the financial institutions, as assisted by the assert management company of Nigeria include, the disposition of eligible assets from Nigerian banks, and this is done effectively, according to the provision provided for by the Act that established the assert management company of Nigeria.

2. Manages And Disposes Eligible Bank Assets
The assert management company of Nigeria is also involved in managing eligible assets from Nigerian banks. Besides managing this acquired bank assets by the asset management company of Nigeria effectively, the asset management company of Nigeria is also expected to efficiently dispose this eligible assets from the banks by following the principles laid down in the Act that established the assert management company of Nigeria.

3. Obtains Achievable Financial Returns
One of the functions of the assert management company of Nigeria is to ensure that it obtain financial returns that is best achievable on eligible assets from banks.

Within this sphere of function of the assert management company of Nigeria, its function is not limited to having the achievable returns on banks that are eligible, the assert management company goes as far as obtaining returns from other assets acquired, provided it is done in accordance with the provision provided for by the act that established the assert management company of Nigeria.

4. Acquires Eligible Bank Assets
Another function of the asset management company of Nigeria is that of acquiring assets from financial houses that are eligible. Please note, eligible financial institutions and eligible assets are the key words here.

The asset management company of Nigeria must ensure that the assets acquired are eligible, and must acquire them from eligible financial houses, provided the transactions is in line with the laid down provision in the Act.

5. Invests In Eligible Financial Institutions
Investment is part of the functions of the asset management company of Nigeria. The asset management company of Nigeria will either purchase and/or make investment in any of the eligible financial houses of its choice on terms.

Such terms must be a condition the asset management company of Nigeria may deemed fit, at the approval of the Central Bank of Nigeria.

6. Collects Interest Principal And Capital Due
The asset management company of Nigeria is into holding and managing, and as well disposing eligible bank assets. Under this sphere of function of the asset management company of Nigeria, the company is expected to collect the interest on principal, as well as the capital due, while the transactions last.

It is also the duty of the asset management company to take over the collateral used in securing such assets, but must be done according to the provision provided for by the act that established the assert management company of Nigeria.

7. Pays Coupon On Bonds And Redeems At Maturity
The assert management company of Nigeria also has considerable involvement in paying of coupon on bonds, it also pay coupon on debt securities that are issued by the asset management company of Nigeria.

It is also the duty of the asset management company of Nigeria to ensure that such coupons are redeemed at when due, that is, at maturity, and the assert management company must it comply with the provision provided for by the act that established the assert management company of Nigeria.

8. Performs Other Functions Related To Management
Any function that is related to the management of the asset management company of Nigeria is carried out by the asset management company of Nigeria, provided it has direct relation.

The asset management company of Nigeria must make sure that, the eligible bank assets, acquired by the asset management company of Nigeria is realized through efficient management and disposition of eligible assets from banks.

It is also expected from the asset management company of Nigeria to manage efficiently proceeds gotten from managing and disposing acquired eligible assets.

9. Realizes Value Of Eligible Bank Assets
Another function of the asset management company of Nigeria is to take important measures that it believes would help protect the value of eligible bank assets acquired by the asset management company of Nigeria.

Apart from protecting the value of these assets, the company must have to ensure the enhancement of the realization of these eligible assets from banks.