The Central Bank of Nigeria (CBN) has reported a major turnaround in its 2024 financial performance, recording a surplus of N165 billion compared to a loss of N1.3 trillion in 2023. The apex bank made this known in its newly released financial statements, highlighting improvements in external reserves, cost control, and asset quality.
According to a statement released Friday, the CBN said the results reflect a renewed commitment to economic stability and sound financial management.
One of the major highlights was the rise in Nigeria’s external reserves, which grew from \$36.6 billion in 2023 to \$38.8 billion in 2024. The bank attributed this increase to improved investor confidence, higher diaspora remittances, and better coordination with the Nigerian National Petroleum Company (NNPC).
In terms of operational efficiency, the CBN cut its loans and receivables from N16.1 trillion to N11.9 trillion, mainly due to recoveries from earlier intervention programs and a policy shift away from direct lending.
The financial statement also showed a reduction in operating expenses, thanks to streamlined operations and cost-cutting across branches and departments.
The Bank received a positive review from its external auditors on its Internal Control over Financial Reporting (ICFR), with its framework rated “effective” for 2024. This reflects improved transparency, stronger risk controls, and adherence to global best practices.
However, the CBN’s liquidity management expenses surged from N1.5 trillion in 2023 to N4.5 trillion in 2024. This rise was linked to intensified efforts to mop up excess liquidity through Open Market Operations (OMO) amid high inflation.
Another key challenge noted was a significant increase in losses from settled derivative contracts, which rose from N6.3 trillion in 2023 to N13.9 trillion in 2024. These contracts, inherited from past management, were settled to reduce Nigeria’s foreign exchange liabilities and rebuild market confidence.
The CBN said these strategic decisions were necessary to stabilise the economy, boost foreign reserves, and improve the overall credibility of Nigeria’s financial system.
