CBN posts N165bn surplus in 2024 financial year

The Central Bank of Nigeria (CBN) has announced that its bottom-line improved from a deficit position of N1.3 trillion in 2023 to a surplus of N165 billion in 2024.

This is contained in the just-released 2024 financial results of the CBN, reflecting the Bank’s commitment to economic stability, sound policy implementation, and strategic financial management.

The report highlights improvements in external reserves, asset quality, cost efficiency, and overall bottom-line performance.

External reserves rose from $36.6 billion in 2023 to $38.8 billion in 2024, largely attributable to improved accretion from portfolio investors, diaspora remittances, and Federal Government receipts.

This was driven by increased confidence in the economy, facilitated by better coordination with the Nigerian National Petroleum Company (NNPC) and effective diaspora engagement strategies.

Additionally, sound investment management decisions aimed at boosting the Bank’s reserves contributed significantly to the impressive performance.

This outcome reflects the CBN’s firm commitment to external sector stability, ensuring Nigeria is better positioned to meet international obligations, stabilise the Naira, and boost macroeconomic confidence.

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The turnaround is a direct result of effective expenditure containment, gains from investments, and increased income from foreign exchange transactions.

The financial statements also indicate a notable reduction in loans and receivables, from N16.1 trillion to ₦11.9 trillion.

This is primarily due to significant recoveries from earlier intervention lending programmes and a deliberate policy shift away from intervention lending and monetary financing through ways and means, in line with the Bank’s new stance of allowing market mechanisms to drive credit allocation and financial sector development.

Operating expenses in 2024 were well-managed and optimised, reflecting a cost-conscious culture.

This was achieved through strategic cost rationalisation initiatives, including the reduction of non-essential spending and streamlined operations across regional branches and departments.

In line with the Financial Reporting Council (FRC) regulatory requirement on Internal Control over Financial Reporting (ICFR), the CBN successfully conducted an assessment of its internal controls, which was certified effective by a joint external audit team.

The CBN noted that this initiative included, Enhancing transparency and accountability in financial reporting; Strengthening institutional governance and internal risk controls; Aligning with international best practices in central bank operations.

As a testament to the initiative’s effectiveness, the joint external auditors issued an independent assurance report declaring the Bank’s ICFR framework to be “effective” for the 2024 reporting period.

While the 2024 financial results reflect significant operational improvements, some expenditure lines presented challenges.

One of the most notable increases in the Bank’s expenses was related to liquidity management operations, which rose to N4.5 trillion in 2024 from N1.5 trillion in 2023. This increase aligns with the Bank’s tighter monetary policy stance to combat inflationary pressures throughout the year.

To this end, the Bank conducted more frequent and higher-value Open Market Operations (OMO) to mop up excess liquidity resulting from fiscal injections—an expensive responsibility that, in some jurisdictions, is borne by the government.

The financial statements also reflect an increase in the loss on settled derivative contracts, which rose from N6.3 trillion in 2023 to N13.9 trillion in 2024. This development is the result of the high volume of derivative contracts settled by the Bank during the year.

These are legacy transactions inherited by the current management team upon assuming office.

This proactive settlement was undertaken as part of a broader strategy to reduce outstanding foreign exchange liabilities, lower FX exposure, boost net foreign reserves, enhance Nigeria’s external buffers, restore credibility to Nigeria’s forward markets, and address legacy obligations transparently.

The CBN’s improved performance in 2024 is not coincidental but the result of deliberate and strategic management efforts.

According to the Bank, its leadership has reinforced governance and accountability, instilling operational discipline; Pursued a balanced monetary policy stance to ensure price and financial system stability.

“These reforms have collectively repositioned the CBN as a credible monetary authority, with its 2024 financial results serving as proof of its unwavering resolve to support economic recovery, safeguard financial stability, and build public trust,” the Bank stated.

 

NIGERIAN TRIBUNE