The Central Bank of Nigeria (CBN) significantly reduced its net loans and receivables by over ₦4.1 trillion in 2024, primarily through cutting down its overdraft exposure to the Federal Government under the controversial “Ways and Means” provision. This drop reflects a broader policy pivot under Governor Yemi Cardoso, aimed at reining in fiscal dominance and restoring monetary stability. The overdraft facility declined from ₦7.95tn in 2023 to ₦3.27tn in 2024, following partial repayments and the securitisation of ₦22.7tn in previous advances.
CBN’s audited financial statements show a deliberate scaling back of interventionist financing. The apex bank’s income from the Federal Government’s overdrafts also dropped sharply, while its Standing Lending Facility surged, suggesting a shift towards more conventional liquidity management. Simultaneously, the bank’s long-term loans rose, and certain institutional exposures like AMCON notes increased slightly. Other loan categories, such as Promissory Notes and the NESI Debenture, were fully cleared, contributing to the decline in gross loans and receivables.
In addition, the CBN tightened its credit risk measures, with expected credit loss allowances increasing by over ₦500bn. Recoveries from intervention programmes amounted to over ₦250bn in 2024, marking progress in cleaning up the central bank’s balance sheet. Key programmes like the Anchor Borrowers’ Programme, Real Sector Support Facility, and Agricultural Credit Schemes saw large repayments, aligning with Cardoso’s objective to reduce developmental finance activities.
The financial report shows the CBN is actively winding down controversial intervention schemes, many of which were criticized for weak oversight and poor recovery rates. While program like the Youth Investment Fund and MSME loans remained largely unchanged, others—like the NESI Stabilisation Fund, were fully repaid or significantly reduced. Despite this, debates persist over the legacy and impact of these interventions, with mixed opinions among policymakers and economic stakeholders.
Governor Cardoso reaffirmed the end of what he called “failed interventions” and committed to focusing the CBN on its core mandate of price and monetary stability. He argued that past interventions, while well-intentioned, distorted the economy and weakened private sector lending. The 2024 financial statements confirm this strategic redirection, showing progress in tightening monetary policy and enhancing fiscal discipline across government-related lending.
Source: Punch