The Nigeria Mortgage Refinance Company (NMRC), Nigeria’s secondary mortgage institution, has demonstrated uncommon resilience, growing its profit before tax (PBT) to N3.77 billion in 2024 despite significant economic headwinds. This represents 3.6 percent growth when compared to the N3.64 billion it recorded in 2023.
The company notes that 2024 was marked by persistent inflationary pressures, fluctuating exchange rates, and evolving monetary policies that posed challenges to institutions and the broader economy.
Yemi Adeola, the company’s chairman, who disclosed these at their 11th Annual General Meeting in Lagos for the financial year ended December 31, 2024, explained that management achieved this feat due to effective cost containment.
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He disclosed further that, though the company’s operating expenses increased by 12 percent from N2.27 billion in 2023 to NN2.55 billion in 2024 due to inflationary pressures, their shareholder value improved with earnings per share rising to N1.73, compared to N1.67 achieved in 2023.
In the same vein, Gross Earnings increased by 1.19 percent, from N10.32 billion in 2023 to N10.45 billion in 2024, while Net Interest Income grew by 6.8 percent, driven by the combined effect of higher interest income and reduced interest expenses.
According to the chairman, the mortgage refinance company, overall, delivered a robust financial performance with all key indices remaining strong, reflecting the company’s resilience and strategic focus.
In terms of its balance sheet, the company’s total assets declined by 3 percent to N85.2 billion, from N87.4 billion as at FY 2023. This represented a 6-percent decline in the company’s total liabilities to N58 billion, down from N61.7 billion. Conversely, the company’s net assets appreciated by 6 percent to N27.2 billion, from N25.7 billion in 2023.
At the end of 2024, the company had a return on average equity of 14 percent, a slight decline from the 15 percent posted in 2023.
The modest topline growth (just 1.2 percent in gross earnings) suggests limited scale expansion or revenue diversification during the period. This could reflect the inherently narrow mandate of NMRC as a secondary mortgage institution or cautious growth amid rising macroeconomic risks.
NMRC, which plays a critical role in Nigeria’s housing finance sector by providing long-term funding to mortgage lenders, has continued to show financial resilience. The growth in net interest income reflects increased efficiency in its core lending operations.
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Kehinde Ogundimu, the company’s CEO, noted, among other things, that while Nigeria’s economic performance in the year under review was positive, inflation remained a significant challenge, with headline consumer price index rising to 34.8 percent in December 2024, higher than the 28.92 percent recorded in the previous year.
The CEO disclosed that, as part of market development, their skills acquisition programme, run in partnership with the Industrial Training Fund, entered its 9th year in 2024.
The initiative aims to empower more women and unemployed youth with technical skills in interior decoration, masonry, plumbing, carpentry, tiling, and electrical work.
“As part of NMRC’s corporate social responsibility efforts, the training programme serves the dual purpose of improving youth livelihoods while addressing the skills gap in Nigeria’s housing and construction industry,” Ogundimu explained.