In a decisive break from its turbulent past, the Central Bank of Nigeria (CBN) has posted its 2024 financial results, showing a dramatic turnaround marked by improved transparency, policy coherence, and economic coordination. Under Governor Yemi Cardoso’s leadership, the apex bank is moving away from interventionist monetary tactics toward market-driven approaches. The bank’s return to profitability, clearer monetary direction, and renewed focus on accountability have helped bolster investor confidence and revive optimism in Nigeria’s economic outlook.
The bank reported a notable increase in external reserves, rising to $38.8 billion from $36.6 billion in 2023, largely due to higher inflows from diaspora remittances and foreign investors. Its bottom-line performance improved significantly, with a surplus of N165 billion in 2024 after a deficit of N1.3 trillion the previous year—driven by FX revaluation gains and increased interest income. Loans and receivables were reduced, signaling a shift away from past lending excesses. Additionally, operating expenses were optimized, and internal financial controls were declared effective by independent auditors.
Despite these gains, legacy challenges continue to weigh on the bank’s financials. Liquidity management costs surged to N4.5 trillion due to intensified monetary tightening efforts, and losses on settled derivative contracts more than doubled to N13.9 trillion. Equity and cash reserves also declined. These setbacks are remnants of prior policies and financial commitments, which the current administration is actively addressing to clean up the balance sheet and rebuild credibility in Nigeria’s financial markets.
Experts agree the CBN’s progress, while promising, remains a work in progress. Analysts highlight the importance of sustaining this momentum through policy consistency and structural reforms. With the unification of Nigeria’s multiple exchange rates and the shift toward evidence-based decisions, the CBN is restoring its reputation. If transparency and discipline are maintained, the 2024 turnaround could mark a foundational step in Nigeria’s broader economic recovery.
Source: The sun