NIRSAL MfB Profit Declines to N2.142 Billion
Microfinance bank subsidiary of Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending Plc (NIRSAL) annual profit declined to N2.142 billion in 2022, translating into a 2.50% decline from N2.197 billion reported in 2021.
The National Microlender, which is an associate company of the Central Bank of Nigeria (CBN), boosted its top line BY 142% to N12.784 billion due to increased business activities from N5.279 billion in the comparable period.
As a result of a surge in transaction volume and rising inflation rate, NIRSAL’s total operating expenses rose by 99.42% year on year from N3.087 billion to N6.156 billion in 12 months.
The microfinance bank’s pretax profit surged to N6.718 billion, representing a significant year-on-year increase of 10% compared with N2.917 billion reported in 2021.
However, tax obligation dragged the performance downward. In 2022, NiRSAL tax expenses rose 100% to N4.576 billion, reducing overall net income to N2.197 billion. Details from the audited report showed that CBN controls 40% of the micro lender’s equities fund of N15.827 billion in 2022.
In 2022, CBN’s share of profit in NIRSAL MfB declined by 29.7% in 2022 to N1.002 billion from N1.426 billion in the comparable period in 2021. #NIRSAL MfB Profit Declines to N2.142 Billion Naira Devaluation Deepens Economic Crisis in Nigeria