The Central Bank of Nigeria (CBN) has declared a botton-line (Net Income) surplus of N165billion in 2024, from the deficit position of N1.3 trillion in 2023.
This was contained in the 2024 financial statements released by the apex bank on Friday.
It explained that the turnaround was a direct consequence of effective containment of expenditure, gains on investments made by the Bank and increased income from foreign exchange transactions.
CBN also increased external reserves from $36.6 billion in 2023 to $38.8 billion in 2024.
This, it said was largely attributable to improvement in accretion to external reserves from portfolio investors, diaspora remittances and Federal Government receipts following improvement in the confidence in the economy, facilitated by better coordination with the Nigerian National Petroleum Company (NNPC) and diaspora engagement strategies.
Also, proper investment management decisions aimed at boosting the reserves of the Bank.
The financial statements also show a notable reduction in loans and receivables from N16.1trillion to N11.9trillion.
This was also attributed to significant recoveries from earlier intervention lending programs, a deliberate policy shift away from intervention lending and monetary financing through ways and means in line with the Bank’s new stance on allowing market mechanisms to drive credit allocation and financial sector development.
The statement said that the bank’s operating expenses in 2024 were well-managed and optimized, reflecting a cost-conscious culture.
This was achieved through strategic cost rationalization initiatives, including reduction in non-essential spending and streamlined operations across regional branches and departments.
The bank’s successful adoption of internal control over Financial Reporting (ICFR), was adjudged by joint external auditors as effective for the 2024 reporting period.
The revealed that while the CBN’s 2024 financial results reflect operational improvements, some expenditure lines posed challenges.
“One of the notable upticks in the Bank’s expenses in 2024 was related to liquidity management operations. These costs rose to N4.5trn from N1.5trn in 2023.
“This increase was in tandem with the tightening monetary policy stance adopted to combat inflationary pressures throughout the year.
“In pursuit of that the Bank conducted more frequent and higher-value Open Market Operations (OMO) to mop up excess liquidity arising from fiscal injections at a significant cost.
“This is a responsibility CBN is carrying out on behalf of the Federation, in some jurisdictions, this cost is borne by the Government.”
The financial statements also reflect an increase in the loss on settled derivative contracts during the year from N6.3trillion in 2023 to N13.9trillion in 2024.
“This development is a direct consequence of the high volume of derivative contracts settled by the Bank in 2024. These are legacy transactions which the current management met on resumption of their office.
“This proactive settlement effort was undertaken as part of management’s broader strategy to Reduce outstanding foreign exchange liabilities, thus lowering its FX exposure, boost net foreign reserves, thereby improving Nigeria’s external buffer and investor confidence, restore credibility to Nigeria’s forward markets and address legacy obligations transparently,” it said.
CBN explained that the improved performance of the Central Bank of Nigeria in 2024 is not coincidental but a product of deliberate, and strategic management efforts.
Noting that its leadership has Reinforced governance and accountability, instilling operational discipline, and Pursued a balanced monetary policy stance, ensuring price and financial system stability.
These reforms, according to CBN, have collectively repositioned the bank 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.
