Central Bank of Nigeria Facilitates N37.6 Billion in Loans to Mortgage Banks in 2022

The Central Bank of Nigeria (CBN) has played a pivotal role in bolstering the mortgage banking sector by disbursing loans and advances amounting to N37.6 billion, as revealed by the recently audited financial statement of the apex bank.

Prominent beneficiaries of these loans from the CBN include the Federal Mortgage Bank of Nigeria and the Nigerian Mortgage Refinance Company (NMRC), both instrumental entities within the country’s mortgage landscape.

The financial report distinctly outlines that NMRC, a public-private refinance mortgage company, availed itself of a substantial N37 billion loan. The loans and receivables category of the report expounds that these funds constitute monies lent with an anticipation of repayment within a one-year timeframe.

Within the same period, the Federal Mortgage Bank of Nigeria secured an advance of N9 million. Also, as part of the Nigeria Housing Finance Programme, a noteworthy N16 million was dispensed as a subordinated loan to various mortgage finance banks, thereby culminating in the cumulative N37.6 billion figure.

In the same context, it’s worth noting that the audited financial statement did not expressly delineate whether these loans have been repaid. In an interesting parallel, an in-depth analysis also unveils that an equivalent sum was extended to these banks in the preceding year, 2021.

This landmark financial disclosure by the CBN signifies a significant stride towards transparency. The apex bank, for the first time since 2015, has released its Consolidated Financial Statements spanning seven years, offering a transparent window for public scrutiny into its financial operations.

In tandem with this development, the CBN’s profit after tax surged to N103.8 billion in 2022, reflecting a notable increase from the N75.13 billion reported in the previous year.

On an international front, the CBN’s financial obligations are also spotlighted. As of December 2022, it was reported that the CBN carried obligations totaling $7.5 billion to J.P. Morgan and Goldman Sachs combined. Additionally, foreign investors held $6.3 billion in forex obligations from the CBN.