CBN cuts staff costs N193bn as expenses hit N2.6trn

The Central Bank of Nigeria (CBN) cut its personnel expenses by N193.14 billion in 2025 following its workforce restructuring programme, even as a sharp increase in other operating costs pushed total expenses to N2.60 trillion.

The CBN’s 2025 audited financial statements showed that personnel expenses for the Bank fell by 32.4 per cent to N402.76 billion in 2025 from N595.90 billion a year earlier.

At the Group level, personnel expenses declined by N192.29 billion, or 31.6 per cent, to N416.26 billion from N608.55 billion in 2024.

The reduction followed the voluntary Early Exit Programme introduced by the apex bank under Governor Olayemi Cardoso as part of efforts to improve operational efficiency and reposition the institution.

However, the savings from lower personnel expenses were more than offset by substantial increases in other expenditure categories, particularly currency management and other operating costs.

For the Bank, currency issue expenses rose by 83.8 per cent to N579.21 billion in 2025 from N315.18 billion in 2024. The CBN said the expenditure covered the printing, processing, distribution and disposal of currency notes.

This meant the Bank spent N176.45 billion more on currency issuance than on personnel costs during the year.

At the Group level, currency issue expenses increased by 94.5 per cent to N464.13 billion from N238.65 billion, exceeding personnel expenses by N47.87 billion.

The sharpest increase, however, came from other operating expenses, which jumped to N1.56 trillion for the Bank from N248.31 billion in 2024.

At the Group level, other operating expenses surged to N1.66 trillion from N312.67 billion.

Consequently, total operating expenses more than doubled during the year, rising to N2.60 trillion for the Bank and N2.61 trillion for the Group.

Despite the substantial increase in operating costs, the CBN returned to stronger profitability in 2025, recording a profit of N86.81 billion, while the Group posted a profit of N136.44 billion, compared with N38.84 billion in 2024.

The personnel cost reduction was driven largely by a sharp fall in other staff expenses.

For the Bank, other staff expenses declined to N86.27 billion in 2025 from N305.52 billion in 2024, representing a reduction of N219.25 billion.

Other staff allowances, however, increased to N225.97 billion from N191.82 billion.

Defined benefit plan expenses declined to N28.21 billion from N36.58 billion, while wages and salaries fell marginally to N43.92 billion from N44.49 billion. Pension costs under the defined contribution scheme increased slightly to N18.39 billion from N17.49 billion.

A similar pattern was recorded at the Group level, where other staff expenses dropped to N87.13 billion from N306.63 billion.

Staff allowances increased to N226.07 billion from N191.95 billion, while defined benefit plan expenses fell to N28.21 billion from N36.58 billion.

Wages and salaries at the Group level stood at N56.23 billion, compared with N55.62 billion in the previous year, while pension costs rose to N18.62 billion from N17.78 billion.

The reduction in annual personnel expenses came despite a significant increase in the CBN’s employee benefit liabilities.

Employee benefit liabilities for the Bank rose to N206.09 billion in 2025 from N80.40 billion in 2024, while the Group’s liabilities increased to N212.28 billion from N79.23 billion.

The increase was driven largely by post-employment gratuity liabilities, which rose to N240.32 billion for the Bank and N248.12 billion for the Group.

The financial statements come amid the Cardoso-led reforms aimed at strengthening governance, improving operational efficiency and enhancing the resilience of the apex bank.

The Governor, in the 2025 annual report, said the Bank remained focused on strengthening the financial system, improving governance and reinforcing operational resilience as part of its transformation agenda.

The 2025 figures therefore show a significant shift in the CBN’s cost structure, with personnel expenditure falling sharply following the workforce restructuring, while spending on currency management and other operations increased substantially.

Despite the higher cost base, the Bank and its Group remained profitable during the year, suggesting that the reduction in staff costs formed part of a broader restructuring of the institution rather than a reduction in overall expenditure.