The Central Bank of Nigeria returned to profit in 2024, posting a surplus of N38.8 billion after recording a massive loss of N1.15 trillion the year before, its new financial statements show.
According to the statements, the profit was driven mainly by a jump in income from financial investments and revaluation gains, profits made when the value of assets like bonds or foreign reserves rose.
The CBN earned N1.89 trillion from such gains in 2024, compared with a loss of N28 billion the year before. It also recorded N12.9 trillion in other income, more than triple what it made in 2023.
However, the bank continued to post huge losses on financial contracts known as derivatives. These are complex tools often used to manage risk, but they can lead to big losses if market conditions turn.
In 2024, the CBN lost N13.88 trillion on these contracts, more than double the N6.25 trillion it lost in 2023. The summary report does not explain what caused the losses.
The CBN posted a profit after tax of N38.8 billion, also a reversal from the N1.27 trillion loss it recorded a year earlier.
The bank’s total assets rose sharply to N117.6 trillion in 2024, up from N87.9 trillion in 2023. This was largely due to a rise in Nigeria’s foreign reserves, which increased from N29.9 trillion to N54.7 trillion.
These reserves include the country’s savings in foreign currencies, held to support the naira and manage external debt.
Despite the return to profit, the CBN is still carrying large accumulated losses as the group records N524.6 billion and the bank’s losses worsened to N798.6 billion.
Cash and bank balances plunged to N34.72 billion in 2024, a sharp drop from N111.15 billion the previous year. In contrast, external reserves surged to N54.73 trillion, up from N29.98 trillion in 2023, while IMF holdings of Special Drawing Rights (SDRs) rose to N6.36 trillion from N3.95 trillion.
The value of loans and receivables also declined, falling to N10.96 trillion from N15.09 trillion, pointing to reduced credit exposure during the period.
On the liability side, currency in circulation expanded significantly to N5.44 trillion, compared with N3.65 trillion a year earlier. Total deposits climbed to N52.38 trillion, up from N38.18 trillion, while the value of instruments issued by the CBN rose to N24.27 trillion from N17.40 trillion.
Other liabilities increased to N21.20 trillion, up from N19.02 trillion in 2023. IMF-related obligations more than doubled, reaching N5.07 trillion from N2.52 trillion.
Overall, the group’s total liabilities rose to N116.59 trillion in 2024, from N85.86 trillion a year earlier. Total equity fell sharply to N1.01 trillion, compared with N2.01 trillion in 2023. The bank’s standalone equity also declined to N728.24 billion, from N882.42 billion.