…Says currency printing, related costs gulp ₦238m
By Chinwendu Obienyi
In what may be turned a complete rebound from last year’s dismal performance, the Central Bank of Nigeria (CBN) has announced that it will remit 80 per cent of its 2024 profit to the Federal Government in line with the Fiscal Responsibility Act 2011.
The development follows a notable profit after tax of N38.8 billion, a reversal from a N1.15 trillion loss recorded in 2023.
Additionally, the apex bank reported that the total value of financial instruments issued under its active monetary policy framework rose to N24.27 trillion, reflecting increased intervention in the domestic financial system.
The apex bank’s 2024 financial statement, released at the weekend, showed that the profit recovery was largely fueled by a substantial FX revaluation gain of N11.28 trillion, representing a 225 per cent year-on-year (y/y) increase, alongside a 29.16 per cent growth in interest income, which climbed to N5.1 trillion from N3.95 trillion in 2023.
Despite this growth, interest income from the overdraft facility granted to the Federal Government dropped significantly to N3.1 billion from N1.6 trillion in 2023. This decline is attributed to the application of a more conservative Monetary Policy Rate (MPR), raised by 3 per cent.
The bank’s financial statements also disclosed that the group spent N238 million on currency-related expenses, including printing, processing, and distribution during the reporting period as compared to N1.1 million recorded in 2023. Fees and commission income stood at N167.02 million as against N92.57 million. Under it, FX earnings stood at N145.13 million compared to N80.28 million recorded in 2023.
Despite the profit rebound, the CBN’s total equity declined. Group equity fell to N1.01 trillion from N2.01 trillion, and standalone equity dropped to N728.24 billion, down from N882.42 billion a year earlier. However, accumulated losses slightly improved, standing at N798.55 billion, compared to N874.82 billion previously.
The bank also posted a fair value reserve of N800.78 billion.
The CBN’s consolidated total assets rose sharply to N117.60 trillion as at 31 December 2024, up from N87.88 trillion recorded a year earlier. Separately, the Bank’s total assets increased to N117.44 trillion from N86.83 trillion.
Cash and bank balances declined significantly to N34.72 billion from N111.15 billion, while external reserves grew to N54.73 trillion, up from N29.98 trillion in 2023. IMF Holdings of Special Drawing Rights (SDRs) also increased to N6.36 trillion from N3.95 trillion.
Loans and receivables dropped to N10.96 trillion compared to N15.09 trillion in 2023, indicating lower credit exposure during the period. On the liability side, banknotes and coins in circulation rose to N5.44 trillion, from N3.65 trillion, while total deposits climbed to N52.38 trillion, up from N38.18 trillion the previous year.
Other liabilities rose to N21.20 trillion compared to N19.02 trillion in 2023, while the IMF-related liabilities stood at N5.07 trillion, doubling from N2.52 trillion recorded previously. Total liabilities for the Group amounted to N116.59 trillion in 2024, compared to N85.86 trillion in 2023.