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Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending Plc’s (NIRSAL) microfinance bank subsidiary witnessed a 2.50% decline in its annual profit for the year 2022, reporting a profit of N2.142 billion compared to N2.197 billion in 2021.
This National Microlender, an associate company of the Central Bank of Nigeria (CBN), achieved a remarkable 142% increase in its top line, with revenue surging from N5.279 billion to N12.784 billion due to heightened business activities.
However, the surge in transaction volume and the escalating inflation rate drove NIRSAL’s total operating expenses up by 99.42% year-on-year, escalating from N3.087 billion to N6.156 billion over the course of 12 months.
The microfinance bank experienced a noteworthy pre-tax profit rise, marking a significant 10% year-on-year increase. The 2022 pre-tax profit stood at N6.718 billion, compared to N2.917 billion in 2021.
Nevertheless, tax obligations cast a shadow on this performance. Tax expenses surged by 100% in 2022, amounting to N4.576 billion, consequently reducing the overall net income to N2.197 billion. An analysis of the audited report revealed that the Central Bank of Nigeria holds a controlling interest of 40% in the micro lender’s equity fund, which was reported at N15.827 billion in 2022.
In the same vein, the CBN’s share of profit in NIRSAL MfB saw a decline of 29.7% in 2022, amounting to N1.002 billion compared to N1.426 billion in the corresponding period of 2021.
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