The Central Bank of Nigeria (CBN) has posted a strong financial performance for 2024, marking a significant turnaround from its 2023 deficit.
According to its newly released financial statements, the apex bank recorded a surplus of N165 billion, reversing a N1.3 trillion loss the previous year.
The results reflect the impact of wide-ranging reforms focused on cost efficiency, investment gains, and strategic financial discipline.
Nigeria’s external reserves rose from $36.6 billion in 2023 to $38.8 billion in 2024, driven by renewed investor confidence, improved diaspora remittances, and better coordination with the Nigerian National Petroleum Company (NNPC).
The bank’s enhanced investment management also contributed to the growth, reinforcing its commitment to external sector stability and macroeconomic resilience.
The CBN’s return to profitability was fueled by increased income from foreign exchange transactions, reduced operational expenditure, and gains from investment portfolios.
This marks a significant shift in the Bank’s financial health and underscores improved internal cost controls and policy implementation.
Loans and receivables declined from N16.1 trillion to N11.9 trillion, reflecting recoveries from previous intervention programs and a strategic move away from direct monetary financing.
The shift aligns with the CBN’s new policy direction aimed at promoting private-sector-led credit allocation.
The Bank reported improved cost efficiency, attributing this to deliberate cost-cutting initiatives and a reduction in non-essential spending across its departments and regional branches.
Governance and Controls Strengthened
In a move to enhance transparency, the CBN fully adopted Internal Control over Financial Reporting (ICFR), a requirement by the Financial Reporting Council (FRC).
The framework was independently certified as effective by external auditors, marking a major step forward in governance and institutional accountability.
Despite these gains, certain cost pressures persisted. Liquidity management expenses surged from N1.5 trillion in 2023 to N4.5 trillion in 2024, reflecting more aggressive Open Market Operations (OMO) to combat inflation.
The Bank also recorded a N13.9 trillion loss on derivative settlements, part of a strategy to clear legacy FX obligations and restore confidence in Nigeria’s forward markets.
Outlook
The CBN’s 2024 performance marks a notable shift toward fiscal prudence, monetary stability, and stronger institutional governance.
While some operational challenges remain, the Bank’s trajectory signals a renewed focus on credibility, economic recovery, and long-term investor trust.
