The Central Bank of Nigeria (CBN) has just published the financial results of 2024 reflect the bank's commitment to economic stability, the implementation of solid policy and strategic financial management, highlighting improvements in external reserves, quality of assets, profitability and general improvement in retention.
External reserves registered an increase of $ 36.6 billion in 2023 to $ 38.8 billion in 2024, largely attributable to the improvement in the accumulation of external reserves of portfolio investors, the remittances of the diaspora and the receipts of the federal government after the improvement in confidence in the economy, facilitated by better coordination with the National Nigerian oil company (NNNPC) and Diatic
In addition, adequate investment management decisions aimed at promoting bank reserves led to impressive performance.
This performance reflects the firm commitment of the CBN with the stability of the external sector, ensuring that Nigeria is better positioned to fulfill its international obligations, stabilize Naira and promote macroeconomic trust.
The final result improved from a N1.3 billion deficit position in 2023 to a surplus of N165 billion in 2024.
This change is a direct consequence of the effective containment of spending, the profits in the investments made by the bank and the increase in the income of the currency transactions.
The financial statements also show a remarkable reduction of loans and accounts receivable from N16.1 billion to N11.9 billion.
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This is mainly attributed to significant recoveries of previous intervention loans, a deliberate policy change moves away from intervention loans and monetary financing through forms and means in line with the new position of the bank to allow market mechanisms to promote credit allocation and development of the financial sector.
Operating expenses in 2024 were well administered and optimized, reflecting a conscious culture of costs.
This was achieved through initiatives for rationalization of strategic costs, including the reduction of non -essential spending and simplified operations in regional branches and departments.
The timely and successful adoption of internal control over financial reports (ICFR): In line with the regulatory requirement of the Financial Information Council (FRC) on ICFR, it is worth noting that the Central Bank could carry out an evaluation of its internal controls that the joint external audit equipment certified even more.
The CBN listed this to include: “Improve transparency and responsibility in financial information.
“Strengthen institutional governance and internal risk controls, aligning with international best practices in the operations of the Central Bank.”
“As a testimony of the effectiveness of this initiative, the joint external auditors issued an independent guarantee report that declared that the bank ICFR frame is” effective “for the period of report 2024.
Although the financial results of 2024 of the Central Bank of Nigeria reflect operational improvements, some lines of expenses raised challenges.
One of the notable increase in bank expenses in 2024 was related to liquidity management operations.
These costs increased to N4.5 billion N1.5 billion in 2023. This increase was together with the hardening monetary policy position adopted to combat inflationary pressures throughout the year.
In search of that, the Bank carried out open market operations (OMO) more frequent and of greater value to mop the excess liquidity derived from tax injections at a significant cost.
This is a responsibility that CBN is carrying out on behalf of the Federation, in some jurisdictions, this cost is assumed by the Government.
“Loss in established derived contracts: a strategic movement to reduce FX liabilities. Financial statements also reflect an increase in the loss of derived contracts established during the year of N6.3 billion in 2023 to N13.9 billion in 2024.
“This development is a direct consequence of the high volume of derived contracts liquidated by the bank in 2024.
“These are inherited transactions that the current management complied with the resumption of its office.
“This proactive liquidation effort was carried out as part of the broader strategy of management to reduce pending currency liabilities, thus reducing its FX exposure, promoting net foreign reserves, thus improving the external confidence of Nigeria and the confidence of investors, restores credibility to Nigeria's term markets and address legacy obligations in a transparent way.
“The improved performance of the Central Bank of Nigeria in 2024 is not a coincidence but a product of deliberate and strategic management efforts.
“Bank's leadership has: reinforced governance and responsibility, instilling operational discipline.
“It pursued a balanced monetary policy position, ensuring the price and stability of the financial system.
“These reforms have collectively repositioned the CBN as a credible monetary authority, with its financial results of 2024 that serve as proof of its unwavering resolution to support economic recovery, safeguard financial stability and build public confidence,” said the bank.
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