CBN Reports 41.3% Drop in Losses, Shows Signs of Financial Recovery in 2024

In a notable turnaround from its previous financial struggles, the Central Bank of Nigeria (CBN) has announced a 41.3 per cent year-on-year reduction in its losses for the financial year ending December 31, 2024. According to the apex bank’s recently released Consolidated and Separate Financial Statements, the CBN recorded a loss of ₦680.62 billion in 2024—significantly lower than the staggering ₦1.16 trillion loss reported in 2023.

This development, released to the public through the CBN’s official financial disclosures, marks a significant step toward financial stability for Nigeria’s central banking institution. The figures reflect both the operations of the CBN and those of its subsidiaries, collectively referred to as “the Group.”

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Improved Financial Performance Signals Institutional Recovery

The CBN’s detailed financial statement highlights that while the Group experienced a total loss of ₦680.626 billion in 2024, the Bank itself recorded a profit of ₦165.694 billion—compared to the prior year’s loss of ₦1.27 trillion. This shift suggests that internal reforms and improved operational efficiency may be starting to yield tangible results within Nigeria’s financial regulatory structure.

The financial reports were prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board, and in compliance with the updated “Revised Accounting Guideline for Financial Reporting by the Central Bank of Nigeria.” These guidelines were revised in 2024 by the Financial Reporting Council (FRC) of Nigeria to reflect changes in the CBN Act of 2007 and the amended FRC Act of 2023.

The document also affirms the accuracy and integrity of the CBN’s reporting systems and accounting controls. The Board of Directors stated, “The summary consolidated and separate financial statements are prepared in all material respects, in accordance with IFRS Accounting Standards, the recommended practices in the guideline, and all applicable legal provisions.”

Profit Distribution to Federal Government in Line with Fiscal Responsibility

One key highlight from the financial disclosure is the allocation of the Bank’s profit. As mandated by the Fiscal Responsibility Act of 2011, 20 per cent of the profit will be retained as earnings, while the remaining balance will be remitted to the Federal Government of Nigeria. This move supports government revenue and reflects the Bank’s commitment to fiscal discipline and accountability.

The report added, “In line with the provisions of the Fiscal Responsibility Act (the Act) 2011, 20 per cent of the profit of the Bank will be credited to retained earnings while the balance will be paid to the Federal Government of Nigeria.”

This gesture is expected to enhance liquidity and potentially support budget implementation efforts, especially in a period where Nigeria is navigating fiscal pressures and economic restructuring.

Strong Internal Controls and Stability Outlook

The Board of Directors, in its concluding remarks within the report, reaffirmed its confidence in the Bank’s internal financial control mechanisms. The Board also declared that there is no indication suggesting that either the Group or the Bank will fail to continue operations over the next twelve months.

“Nothing has come to the attention of the Board of Directors to indicate that the Group and Bank will not remain a going concern for at least twelve months from the date of this statement,” the report concluded.

This assurance provides confidence to stakeholders, investors, and the public, affirming the apex bank’s readiness to navigate challenges while sustaining its regulatory roles in stabilizing the nation’s economy.

The central bank’s significant reduction in losses will likely influence policy perception and investor confidence in Nigeria’s financial system. It also reflects a potential shift in monetary and administrative policies under the current leadership, which has sought to improve transparency and reduce operational inefficiencies.

As the country continues to recover from inflationary pressures, exchange rate volatility, and fiscal challenges, a leaner and more financially sound CBN may provide the needed foundation for more robust macroeconomic management.