Monday, 4 June 2018, 03.19PM / FDC / Research
AMCON, Nigeria’s institutional response to the global financial crisis, banking systemic meltdown and stock market crash in 2008, is finally turning the corner. Its operating loss has declined sharply (90%) following the recognition of the contribution of the banking industry levy and a strong grip on operating expenses growth which was lower than the average rate of inflation in 2017.
More importantly is AMCON’s contribution to the social good of Nigeria as against its financial viability. It has saved the country thousands of potential job losses and over 13,000 corporate casualties that would have been a fallout of the economic crisis.
The Corporation recorded total loss for 2016 at N14.37 billion in 2017 which reduced significantly by N50.45 billion when compared to N64.82 billion loss recorded in 2016.
The Corporation maintained financial discipline by keeping its operating expenses flat at N24billion in spite of the rise in inflation to 18.5% in 2017. The financial prudency helped in reducing the loss incurred as this remain the only controllable cost within Management Disposal. helped in reducing the loss incurred as this remain the only controllable cost within Management Disposal.
The Corporation had N9.5billion gain on fair value measurement of Financial Assets designated at FVTPL (EBAs), from N17.33 billion in 2016 to N26.86 billion in 2017.
A total of N184.9 billion was received from the sinking fund in 2017 which include N50 billion contribution from CBN.
Fair Value loss on investment in properties stood at N25.61 billion due to depression in Property market in 2017.
Credit Loss expense also reduced to N19.76 billion in 2017 from N31.68 billion in 2017.
Investments in subsidiaries (CDL and PAN) were classified as “held for sale” in prior years 2016 and 2015. However, since these subsidiaries were yet to be disposed as envisaged, they were reclassified to investment in subsidiaries and consolidated in the Group account i n accordance with the requirements of IFRS and in line with the presentation in the 2017 financial statements.