The Nigerian Export-Import Bank (NEXIM) spent a staggering N3.9 billion on staff travel in 2024, representing an increase of over 4,500% compared to N79.6 million in 2023, according to its audited financial statements.
The spike made travel the single largest component of administrative expenses during the year, surpassing key cost categories such as personnel and professional fees.
The surge in travel spending occurred even though the Bank operated for much of 2024 without a governing board, after the previous one was dissolved in June 2023 by the Presidency.
In February 2024, President Bola Tinubu appointed Mr. Ibrahim Khalil Gaga as Executive Director, Corporate Services, at NEXIM Bank, restoring executive-level oversight after the board’s dissolution the previous year.
Record profits amid rising costs
Despite the cost escalation, NEXIM delivered one of its strongest financial performances to date. Profit before tax surged to N30.47 billion in 2024, more than doubling the N13.18 billion recorded in 2023, representing a 131% year-on-year increase.
- The Bank’s profit growth was powered by a 32% rise in interest income to N26.1 billion and a 66% increase in other operating income to N24.99 billion, boosted by foreign exchange gains and dividend income.
- Impairment charges fell sharply by 61%, further improving margins and bottom-line growth.
- Total comprehensive income for the year reached N75.32 billion, compared to N38.36 billion in 2023, aided by substantial revaluation gains on financial instruments.
Loans and total assets expand
NEXIM expanded its core operations significantly in 2024.
- Loans and advances increased by N36.7 billion, reflecting stronger lending to exporters and trade-related enterprises.
- Cash and cash equivalents jumped by N53.9 billion to N163.97 billion, while total assets are estimated to have exceeded N600 billion.
- Shareholders’ equity rose by nearly N50 billion to N162.2 billion, supported by retained earnings and fair value gains.
Travel costs overshadow personnel spending
The N3.9 billion in staff travel expenses accounted for nearly 39% of the total operating expenses of N9.48 billion, an unusually high ratio for a financial institution.
- Personnel costs, which include salaries, pensions, and allowances, totalled N4.13 billion, meaning travel spending was almost equivalent to the Bank’s entire wage bill.
- By comparison, professional fees amounted to N748.5 million, while advertising and marketing expenses stood at N1.8 billion.
The steep rise in travel outlays suggests a dramatic shift in operational priorities, with travel costs expanding faster than overall income or staff costs.
No dividends, but stronger balance sheet
NEXIM did not declare dividends for the year, consistent with its mandate as a state-owned export credit institution.
The Bank remains jointly owned by the Federal Ministry of Finance Incorporated (MOFI) and the Central Bank of Nigeria (CBN).
Auditors KPMG issued an unqualified opinion, confirming full compliance with IFRS and CBN reporting standards, and noted that the Bank incurred no regulatory penalties during the year.
