CBN Posts ₦165bn Surplus In 2024, Boosts External Reserves To $38.8bn

The Central Bank of Nigeria (CBN) has recorded a strong turnaround in its financial performance for 2024, posting a surplus of ₦165 billion compared to a deficit of ₦1.3 trillion in 2023.

That is according to the apex bank’s 2024 financial statement released on Friday, which highlighted improved operational efficiency, a stronger external reserve position, and a shift in strategic financial management.

According to the CBN, the improved bottom-line performance was attributed to “effective containment of expenditure, gains on investments made by the Bank and increased income from foreign exchange transactions.” This marks a significant milestone in the apex Bank’s efforts to restore financial stability and investor confidence.

The Bank’s external reserves rose from $36.6 billion in 2023 to $38.8 billion in 2024. This growth was largely credited to increased inflows from portfolio investors, diaspora remittances, and improved Federal Government receipts.

The CBN noted that this was made possible through better coordination with the Nigerian National Petroleum Company Limited (NNPCL) and diaspora engagement strategies.

“This performance reflects the CBN’s firm commitment to external sector stability,” the report stated, emphasising the importance of robust reserves in stabilising the Naira and reinforcing macroeconomic confidence.

The financial statements also show a significant reduction in the bank’s loans and receivables portfolio, from ₦16.1 trillion in 2023 to ₦11.9 trillion in 2024. This was largely the result of recoveries from earlier intervention lending programs and a deliberate shift away from such programs and monetary financing.

According to the CBN, this policy change was “in line with the Bank’s new stance on allowing market mechanisms to drive credit allocation and financial sector development.”

Operating expenses were described as “well-managed and optimised,” with cost-conscious measures including the reduction of non-essential spending and streamlining operations across departments and regional offices.

In addition, the CBN successfully implemented Internal Control over Financial Reporting (ICFR), in compliance with Financial Reporting Council (FRC) regulations. The joint external auditors certified the ICFR framework as “effective,” reflecting the Bank’s commitment to transparency, institutional governance, and alignment with international best practices.

Despite the improvements, the report highlights two major expenditure challenges. First is the sharp increase in liquidity management expenses, which rose from ₦1.5 trillion in 2023 to ₦4.5 trillion in 2024. The Bank attributed this to its aggressive Open Market Operations (OMO) aimed at controlling inflation through monetary tightening.

“These costs were incurred in the course of mopping up excess liquidity from fiscal injections,” the statement explained, noting that in some jurisdictions, such costs are borne by the government.

Second is the loss on settled derivative contracts, which increased from ₦6.3 trillion in 2023 to ₦13.9 trillion in 2024. The CBN clarified that these were legacy contracts inherited by the current management team and settled as part of a deliberate strategy to reduce foreign exchange liabilities.

“This proactive settlement effort was undertaken… to 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,” the Bank said.

The CBN emphasised that its improved financial performance was not accidental but the result of intentional reforms and disciplined financial stewardship.

The statement noted that the Bank has “reinforced governance and accountability, instilling operational discipline” while maintaining “a balanced monetary policy stance” to ensure price and financial system stability.

With its 2024 financial results, the CBN appears to be repositioning itself as a credible and effective monetary authority, capable of supporting economic recovery, enhancing public trust, and safeguarding Nigeria’s financial stability.