Abstract:
This study examines specifically the operations and establishment of the Asset Management corporation of Nigeria (AMCON). Using Prose Analysis, the study analyzed how Asset Management Companies in some jurisdictions across the world handled their non - performing loans to achieve stability in their financial sector. This is to create a basis upon which the performance ofAMCON would be compared. In addition to the fore going, AMCON's Enabling Act of 2010 was reviewed with the aim of understanding the essence of AMCON and the role AMCON played in restoring stability in the banking system since the commencement of its operation in Nigeria. The study finds strong evidence to suggest that: there are pitfalls and inconsistencies in AMCON Enabling Act 2010 which should be contained if AMCON should achieve the goal of its establishment; the creation of AMCON could lead to Moral Hazard if some "specific conditions" are not imposed on bank's management; the Health of Nigerian banks has been improved since the commencement of AMCON's operation among others .