By Babajide Komolafe
The declining financial performance of the Bank of Agriculture deteriorated in 2015 as its losses shot up by 3,742 percent to N7.1 billion. Meanwhile financial performance of Nigeria Security Printing and Minting Company (NSPM) or The Mint, improved during the year as its losses dropped by 94 percent to N345 million in 2015. This was disclosed by the Central Bank of Nigeria (CBN) in its Consolidated and Separate Financial Statements for the year ended 2015 released last week.
The Bank of Agriculture (BoA) is one of the seven associates companies of the CBN. Others are Nigeria Interbank Settlement System (NIBSS), African Finance Corporate (AFC), National Economic Reconstruction Fund (NERFUND), Nigerian Export Import Bank (NEXIM), Bank of Industry, Financial market Dealers Quote OTC (Plc). The CBN statement revealed that all the associate companies made profit in 2015 except BoA and the Mint recorded losses.
Analysis of the financial performance of BoA revealed that total loss rose sharply from N185 million in 2014 to N7.108 billion in 2015. Though revenue rose by 50 percent to N1.8 billion from N1.2 billion, the bank went from gross income N3.2 billion in 2014 to gross loss of N2.5 billion in 2015, implying sharp increase in losses to bad loans Furthermore its total expenses jumped by 35 percent or N1.2 billion from N3.4 billion to N4.6 billion.
The Bank was incorporated on 24 November 1972 as Nigerian Agricultural Bank Limited, changed its name to the Nigerian Agricultural and Co-operative Bank Limited (NACB) in 1978 and later changed to Nigerian Agricultural Co-operative and Rural Development Bank Limited (NARCDB) on 29 December 2000. It enlarged it object clause to include the total development activities of the Peoples Bank of Nigeria and also acquired the risk assets of the Family Economic Advancement Program (FEAP).
On 6 October 2010, the Bank further changed to Bank of Agriculture Limited. The Bank is fully owned by the Federal Government of Nigeria through the Ministry of Finance Incorporated and the Central Bank of Nigeria. The Bank grants Micro and Macro loans for Agricultural production, processing and marketing and other financial services, but as from 1 April 2006, marketing ceased to be one of the Bank’s principal activities. It also engages in the business of stimulation of rural savings as well as provision of loans to small scale enterprises in order to develop the economic base of the low income populace.
Mint records N345m loss
The financial statement revealed that the Nigeria Security Printing and Minting Company (NSPM) or Mint recorded a loss of N345 million in 2015. This however represents 94 percent decline when compared with the N5.5 billion loss incurred in 2014. The Company’s revenue rose by N5.31 billion or 29.6 percent to N23.2 billion from N17.89 billion. Cost of sales rose 33.3 percent to N20.22 billion from N15.19 billion while administrative cost dropped by 37 percent to N2.96 billion from N4.7 billion. Though the company earned N275 million as finance income, up by 17 from N235 million in 2014, its finance cost, interest paid on loans, jumped by 269 percent to N1.22 billion from N33 million in 2014.