Mortgage bank loses 2 billion in assets due to NEXIM default

A mortgage bank headquartered in the Federal Capital Territory, Abuja, has lost prime properties valued at around N2 billion for defaulting on a loan secured from the Nigerian Export-Import Bank .

The assets include a vacant tract of land located close to the National Assembly, Three Arms area, valued at approximately N1 billion; one house in Amina Court, Apo Dutse District, Abuja, and two residential estates in Chachi, Tafa Local Government Area, Suleja, Niger State.

Our correspondent reports that NEXIM bank has put up for sale the defaulters’ assets valued at N7 billion.

A report by NEXIM said the bank had embarked on an aggressive loan collection exercise, leading to the recovery of N10.2 billion and $3.25 million in debts from delinquent customers.

The organization revealed that it had made sustained efforts to clean up the balance sheet and improve risk management practices with new loans granted in 2018 performing at 100%, a major change from the huge non-performing loans of the past.

The financial institution also added that it has also improved its operating model through the restructuring of the bank’s regional offices to maintain a presence in each geopolitical zone of the country for better market penetration and national coverage.

He said: “The declining trend in the bank’s operational performance has since reversed, with improvement in major financial indices as follows: Bank’s balance sheet growth from N67.73 billion in April 2017 to 202 .03 billion naira in February 2022.

“With continued positive performance, increased strategic partnerships for lines of credit and the push for the recapitalization of the bank, the objective is to achieve a significant increase in the size of the balance sheet in line with the growing export opportunities. , particularly from the perspective of the African Continental Free Trade Agreement.”

NEXIM revealed that it had used the N100 billion CBN facility released in December 2020 for the implementation of the export development program following the high level of confidence in the current management of the bank.

Copyright PUNCH.

All rights reserved. This material and any other digital content on this website may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without the prior express written permission of PUNCH.

Contact: [email protected]

Comments are closed.