By Aminu Abubakar

The Central Bank of Nigeria (CBN) has reported a marked improvement in its financial performance for 2024, signalling a return to stability and renewed investor confidence in the country’s economic trajectory.

The Bank’s newly released financial statements highlight gains in external reserves, bottom-line performance, and cost efficiency, underpinned by strong policy direction and financial discipline.

External Reserves Rise to $38.8 Billion

In a notable development, Nigeria’s external reserves grew to $38.8 billion in 2024, up from $36.6 billion in 2023.

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 The increase is attributed to stronger inflows from portfolio investors, diaspora remittances, and improved remittances from the Nigerian National Petroleum Company (NNPC).

Enhanced confidence in the economy, driven by better coordination with key stakeholders and prudent reserve management, also played a critical role.

The CBN noted that this improved reserve position reinforces Nigeria’s ability to meet international obligations, stabilise the Naira, and bolster macroeconomic confidence.

Return to Profitability: ₦165 Billion Surplus

The Bank reversed a prior deficit of ₦1.3 trillion in 2023 to record a surplus of ₦165 billion in 2024. This turnaround was driven by cost containment, investment gains, and increased income from foreign exchange transactions.

Loan Book Shrinks as Intervention Lending Winds Down

CBN reported a reduction in loans and receivables from ₦16.1 trillion to ₦11.9 trillion.

The drop is due to recoveries from earlier intervention programs and a strategic shift away from direct monetary financing. The Bank emphasised its commitment to allowing market forces to drive credit allocation going forward.

Cost Optimization Efforts Yield Results

Operating expenses were efficiently managed in 2024 through targeted cost-cutting and operational streamlining across departments. The Bank said the results reflect a “cost-conscious culture” that has taken root within its operations.

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CBN Achieves Regulatory Milestone on Internal Controls

In compliance with the Financial Reporting Council’s guidelines, the CBN successfully implemented the Internal Control over Financial Reporting (ICFR) framework. The external audit team certified the controls as effective, enhancing the Bank’s transparency, governance, and alignment with global central banking standards.

Liquidity Management Costs Rise Amid Tightening Policy

While overall performance improved, liquidity management expenses surged to ₦4.5 trillion from ₦1.5 trillion in 2023. The increase was tied to the Bank’s aggressive Open Market Operations (OMO) to curb inflation and absorb excess liquidity. The CBN noted that these efforts, while costly, are necessary tools in executing monetary policy on behalf of the Federation.

Losses on Derivatives Reflect Strategic FX Cleanup

Losses on settled derivative contracts nearly doubled to ₦13.9 trillion in 2024. These transactions, inherited from previous administrations, were proactively settled to reduce Nigeria’s foreign exchange liabilities, restore credibility to the forward market, and build investor trust.

A Strategic Repositioning

CBN Governor Olayemi Cardoso described the results as the outcome of “deliberate and disciplined reforms,” adding that the Bank remains committed to macroeconomic stability and financial system resilience.

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“2024 was a year of recalibration. Our financial performance reflects not only sound economic stewardship but a renewed commitment to transparency, accountability, and market-oriented policies,” the Governor said.

As Nigeria navigates a path toward sustainable economic recovery, the Central Bank’s 2024 financial report presents a positive signal of its role in fostering long-term growth and resilience.