NEXIM Bank Reports 2024 Growth with Doubled Profit, Despite Board Void and Soaring Travel Costs
NEXIM Bank, a joint venture between the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria, has reported significant growth in 2024. The bank's total assets surpassed N600 billion, while its profit before tax surged to N30.47 billion, more than doubling the previous year.
The increase in profit can be attributed to a N36.7 billion rise in loans and advances. However, the bank operated without a governing board for much of the year, following the appointment of Mr. Ibrahim Khalil Gaga as Executive Director, Corporate Services by President Bola Tinubu at the end of 2023.
Travel expenses emerged as the largest administrative cost, soaring to N3.9 billion in 2024. This marked a staggering 4,500% increase from the N79.6 million spent in 2023. Despite this, the bank's auditors issued an unqualified opinion for the year, and no regulatory penalties were incurred.
NEXIM Bank's growth in 2024 is notable, with a substantial increase in total assets and profit. However, the significant rise in travel expenses and the lack of a governing board for much of the year may warrant further scrutiny. The bank did not declare dividends in 2024.
