CBN Reports Strong Financial Turnaround in 2024, Records Surplus Amid Economic Reforms

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The Central Bank of Nigeria (CBN) has released its 2024 financial statements, showcasing significant improvements in key economic indicators, including a rebound from a deficit to a surplus, growth in external reserves, and enhanced fiscal discipline.

The key highlights of CBN’s 2024 Performance include External Reserves Rise to $38.8 Billion. Indeed, Nigeria’s external reserves increased from $36.6 billion in 2023 to $38.8 billion in 2024, driven by higher foreign portfolio investments, improved diaspora remittances, and better coordination with the Nigerian National Petroleum Company (NNPC).

The CBN attributed this growth to stronger investor confidence and strategic reserve management.

Also, there is Deficit to Surplus of ₦165 Billion Profit Recorded. The CBN posted a surplus of ₦165 billion in 2024, a major turnaround from the ₦1.3 trillion deficit recorded in 2023.

This improvement was due to cost-cutting measures, higher investment returns, and increased foreign exchange transaction income.

Similarly, Reduction in Loans and Receivables of the Bank dropped significantly from ₦16.1 trillion to ₦11.9 trillion, reflecting successful recoveries from past intervention programs and a shift toward market-driven credit policies.

Cost Efficiency and Stronger Financial Controls resulted in Operating expenses being streamlined through strategic cost-cutting initiatives, while the CBN successfully implemented an Internal Control over Financial Reporting (ICFR) framework, earning an “effective” rating from external auditors.

Despite the positive results, the CBN faced higher expenses in liquidity management (rising to ₦4.5 trillion from ₦1.5 trillion) due to aggressive monetary tightening to curb inflation. Additionally, losses from settled derivative contracts surged to ₦13.9 trillion in 2024, a move the Bank described as necessary to clear legacy FX obligations and restore market confidence.

There is no doubt that the CBN’s 2024 performance underscores its commitment to economic stability, prudent fiscal management, and governance reforms.

With a reinforced focus on transparency and market-driven policies, the Bank aims to sustain Nigeria’s economic recovery and strengthen investor trust.

“These results reflect deliberate, strategic reforms to restore credibility and ensure long-term financial stability,” the CBN stated in its report.