CBN Defies Odds, Posts N38.8 Billion Profit in 2024 After N1.15trn Loss
..profit after tax hits N38.84bn
The Central Bank of Nigeria (CBN) recorded a net operating profit of N1.17trn in 2024—largely driven by significant net unrealised gains on foreign exchange (FX) revaluations.
The net FX gains jumped to N11.28trn from N3.47trn alongside fair value gains of N684.16bn on gold bullion.
Data from the CBN’s 2024 financials seen by MoneyCentral shows that currency issuance expenses surged to N238.65bn in 2024 (from N1.11bn in 2023), evincing higher cost of printing, processing, and disposal of banknotes.
This, however, translated into a 49.05% growth in the currency in circulation in 2024 compared to the 163.51% surge in 2023, indicating a more measured liquidity management strategy by the CBN.
The higher currency expense, coupled with a sharp rise in personnel expenses to N608.55bn, eroded the Bank’s profit position and resulted in an operating loss of N28.21bn.
Consequent to the CBN’s efforts to clear inherited FX backlogs, losses on settled derivative settlements—mainly from swaps, forwards, and futures—rose to N13.88trn, more than doubling the N6.25trn recorded in 2023.
With the Naira significantly weaker, settling these dollar-linked contracts came at a much higher cost.
The CBN would have ended the year in another loss-making position but for the N72.89bn share of profit from equity-accounted investees, which ultimately lifted the CBN to a modest profit after tax (PAT) of N38.84bn, reversing the N1.16trn loss recorded in 2023FY.
The Bank’s external reserves made up the largest component of total asset accounting for 46.56% of the N117.60trn recorded in 2024 (from N87.87trn in 2023), while debt instruments increased by +12.91% to N29.87trn (vs. N26.46trn), representing 25.39% of the total assets.
The CBN’s external reserves grew by +6.01% YoY to USD38.84bn, while the Naira value jumped by +82.49% to N54.73trn (from N29.98trn in 2023), largely reflecting the impact of Naira depreciation.
On the other hand, the non-liquid component, primarily held in gold bullion, rose by +117.9% to N2.770 trn. Despite the value increase, the volume of gold held remained constant at 687,402 troy ounces. This surge in value was driven by the rise in global gold prices, which climbed from USD2,062.98 per ounce in 2023 to USD2,624.39 per ounce in 2024.
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