AG Mortgage Bank PLC has unveiled plans to raise ₦10 billion as fresh capital in 2025 as it marked its 20th anniversary, with management positioning the initiative as a strategic lever to scale operations, strengthen its balance sheet, and support Nigeria’s housing finance sector.
Ngozi Anyogu, managing director/chief executive officer, while presenting the bank’s 2024 financial results, disclosed that gross earnings rose by 7% year-on-year to ₦3.47 billion, while total assets expanded to ₦22.36 billion, up from ₦21.1 billion in 2023. Shareholders’ funds grew by 8% to ₦6.1 billion within the same period.
Anyogu said the capital raise aligns with the Central Bank of Nigeria’s recapitalisation directive for deposit money banks, stressing that mortgage institutions are likely to be included in the policy framework.
“The ₦10 billion capital raise is being pursued through offerings to existing shareholders, strategic partners, institutional investors, high-net-worth individuals, and development finance institutions.
Read also: Priced out: No mortgage for Nigerians earning below N500k
“It will elevate the bank’s national status, boost our IT and digital infrastructure, and enable us to underwrite broader financial inclusion,” he said.
He added that “The capital mobilisation is also expected to underpin the rollout of the bank’s new five-year growth agenda, Project Momentum 2025–2030, built on five pillars: transition to a group structure, sustainable capital base, business growth, leadership in green and sustainable housing (ESG impact), and enhanced shareholder value.”
Felix Nwabufo, chairman of the Board, noted that Nigeria’s housing sector contributed over ₦11 trillion to GDP in 2024, with rising adoption of policies such as the Retirement Savings Account (RSA) scheme that allows pension contributors to deploy up to 25% of balances for mortgage equity.
He, however, highlighted persistent industry challenges, including lack of long-term capital, inadequate supply of affordable housing, escalating construction costs, legal bottlenecks in foreclosure, and land administration hurdles.
Despite reporting strong financials, Nwabufo stated that directors would not recommend dividend payments for 2024, as surpluses would be reinvested to strengthen the bank’s capital base.
