Once upon a recent past, Nigeria’s central banking fortress stood clouded in opacity. In that era, the word “transparency” rarely made it past the corridors of power at the Central Bank of Nigeria (CBN). Confidence in its financial integrity waned as stakeholders—both foreign and domestic—struggled to make sense of the bank’s monetary direction.
The silence around its balance sheets bred uncertainty, and suspicion took root in the vacuum. Investors hesitated, fiscal analysts fretted, and the average Nigerian citizen remained largely disconnected from a vital institution whose actions touched every thread of the economy.
But 2024 has ushered in a new season — one defined by accountability, strategic reforms, and a renewed commitment to national economic progress. With the public release of its 2024 financial statements, the CBN, under the stewardship of Governor Olayemi Cardoso, has signaled not just a change in numbers but a transformation in philosophy and intent.
For the first time in years, the bank’s financial disclosures speak with clarity, reflecting a robust operational framework, a return to surplus, and a renewed confidence in Nigeria’s macroeconomic future.
The decision to release the CBN’s 2024 financial statements is monumental. It is not just a bureaucratic milestone—it is a declaration of intent. In a financial ecosystem that thrives on trust and transparency, making these records publicly available sets a critical precedent.
By publishing its financials, the bank demonstrates a commitment to openness, setting a benchmark for future leadership and regulatory institutions. This bold move inherently builds investor confidence, promotes regulatory discipline, and signals to the global community that Nigeria’s apex bank is aligning with international standards.
Transparency, as exhibited through this public disclosure, serves multiple purposes. For the banking sector, it provides a template for prudence. For foreign investors, it ensures policy consistency. For the Nigerian public, it offers reassurance that the bank is a partner in the nation’s financial well-being. In all respects, it is a win for Nigeria.
Perhaps the most notable highlight of the 2024 statement is the financial turnaround the bank has achieved. From a troubling deficit of ₦1.3 trillion in 2023, the CBN recorded a surplus of ₦165 billion in 2024 — a clear indication of prudent fiscal management, strategic investments, and disciplined cost containment.
That transformation is no small feat, especially in an environment beset with economic shocks, inflationary pressures, and currency volatility.
The surplus is largely attributable to three pillars: efficient cost control, strategic investment decisions, and increased income from foreign exchange transactions. By reining in expenditure and leveraging the bank’s portfolio investments wisely, the CBN has not only balanced its books but also set an example in financial stewardship.
Another commendable milestone is the improvement in external reserves, which rose from $36.6 billion in 2023 to $38.8 billion in 2024. This increase is a product of improved diaspora remittances, greater inflow from portfolio investors, and better collaboration with the Nigerian National Petroleum Company (NNPC).
In essence, the CBN’s leadership succeeded in restoring faith in the economy, reversing capital flight, and building a stronger external buffer.
This uptick in reserves underscores the bank’s commitment to external sector stability—a prerequisite for exchange rate management, inflation control, and macroeconomic resilience. A fortified reserve position enhances Nigeria’s ability to meet international obligations and injects confidence into the market, supporting the naira and bolstering trade-related activities.
The 2024 performance also reflects an internal culture shift towards cost-consciousness. The bank strategically rationalized its operating expenses by cutting non-essential spending and streamlining operations across its various branches. This culture of frugality, particularly within a public institution, reflects sound governance and a deliberate effort to instill fiscal discipline in public sector finance.
Notably, loans and receivables saw a reduction from ₦16.1 trillion to ₦11.9 trillion. This was made possible through significant recoveries from past intervention lending and a policy shift away from quasi-fiscal financing.
The CBN has essentially walked back from interventionist models and embraced a more orthodox, market-driven approach to credit allocation—a move lauded by economists and financial experts alike.
Perhaps one of the most underreported but crucial milestones in the CBN’s 2024 report is its successful adoption of the Internal Control over Financial Reporting (ICFR) framework. This initiative, in line with the Financial Reporting Council’s mandate, speaks volumes about the bank’s commitment to institutional governance, risk mitigation, and accountability.
An independent assurance report by joint external auditors declared the ICFR framework “effective” for the reporting period—a rare and highly commendable outcome. This validation not only aligns the CBN with global central banking standards but also boosts institutional integrity and operational transparency.
Despite the improvements, the CBN’s 2024 financials did reflect significant expenses in some areas, notably in liquidity management and derivative settlements. The cost of Open Market Operations (OMO) surged from ₦1.5 trillion in 2023 to ₦4.5 trillion in 2024—a direct result of the Bank’s tightening monetary stance aimed at taming inflation. Though substantial, this expense is a necessary trade-off in the effort to maintain price stability. It is also worth noting that in many jurisdictions, such liquidity costs are borne by the treasury and not the central bank.
Additionally, losses on settled derivative contracts increased from ₦6.3 trillion to ₦13.9 trillion. While alarming at first glance, these settlements were part of a calculated effort to address inherited foreign exchange liabilities.
The management’s decision to clear these legacy obligations head-on — rather than defer them — reflects strategic foresight and a commitment to long-term macroeconomic stability. By doing so, the bank has improved Nigeria’s forward market credibility and reduced its FX exposure.
What stands out from the 2024 financial performance is that it wasn’t accidental. It was born of a clear-eyed leadership style, strategic policy shifts, and an unwavering resolve to rebuild the credibility of the bank.
Governor Cardoso and his team deserve commendation for instituting reforms that have reversed a trajectory of opacity, mismanagement, and fiscal indiscipline.
Under his leadership, the CBN has prioritized institutional governance reforms, transparent financial reporting, prudent monetary policy, strategic stakeholder engagement, external reserve management and departure from interventionist lending, among others.
These initiatives have not only improved the bank’s operational health but also enhanced its reputation among domestic and international stakeholders.
Public trust is central to the success of any central bank. The 2024 CBN report has gone a long way in rebuilding this trust. Nigerians now have more reasons to believe in the apex bank’s mission and capacity. Foreign investors are watching and responding. Global institutions, from the IMF to the World Bank, are beginning to cite Nigeria’s reforms with cautious optimism.
In an environment often plagued by policy inconsistency and weak accountability, the CBN’s achievements in 2024 serve as a compelling case study in how leadership and transparency can restore institutional credibility.
A Template for the Future
The release of the 2024 financial report is not just a retrospective—it is a roadmap. It sets a new standard for central banking in Nigeria. It demands that future administrations uphold this culture of transparency. It invites public scrutiny not as a threat, but as a strength. It encourages institutional alignment with international best practices.
For the first time in years, the Central Bank of Nigeria is not just responding to crises — it is building resilience. It is not just plugging financial holes—it is setting a foundation for sustainable growth.
The 2024 financial statements of the Central Bank of Nigeria do more than tick boxes—they narrate a story of reform, resilience, and redemption. They mark a departure from an era of silence and deficits into one of clarity, prudence, and progress. And at the heart of this transformation is a leadership that dared to be different.
Olayemi Cardoso’s CBN has proven that strategic thinking, institutional discipline, and transparency are not just theoretical ideals—they are achievable realities. The results are there for all to see: stronger reserves, a return to surplus, effective internal controls, and a rekindled national confidence in the apex bank.
For this, not a few people would agree that the Central Bank of Nigeria deserves not just recognition, but commendation.
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