Central Bank of Nigeria (CBN) Returns to Profit with N38.8bn in 2024 After Historic Loss, as Revaluation Gains Drive Recovery

The Central Bank of Nigeria (CBN) has published that -financial statements for the year completed on December 31, 2024, showing a dramatic cycle from the loss of trillion N1.55 to 2023 to a tax income of N38.8 billion. The rebound reflects a move to the bank's fortunes amid continuous economic disturbance, volatility of foreign exchange, and structures that change the country's financial space.

Performance, Awarded by KPMG Professional Services and Ernst & Young, has been further strengthened by non-cash nets who are unaware of the alien re-exchange, which has increased by an eye that gains 225% to N11.28 trillion-forming the backbone of CBN recovery.

This foreign exchange revaluation unified for the lion's part of the total operating income, which increased N15.1 trillion in 2024, from N5.9 trillion last year.

CBN also recorded a year-to-year increase of 29.16% in interest income, reaching N5.1 trillion from N3.95 trillion in 2023. However, this benefit was damaged by a steep increase in interest costs, which climbed 185% to N4.979 trillion. Balloon's interest costs mean that net interest income refused 94%, falling to N122.91 billion only from N2.2 trillion last year of finance.

Despite the underlying force in operating income, financial statements reflect the CBN's ongoing exposure to a changing macroeconomic environment. The report noted that these external pressures shape the overall performance of the group and bank at the time of review.

The 2024 financial statements were prepared in accordance with the International Financial Reporting Standards (IFRS) and followed the updated rules of the Financial Reporting Council of Nigeria (FRC). The Audit also aligns with the amended provisions of the Central Bank of Nigeria Act and the FRC Act, both modified in 2023. The statements of the audit, dated April 30, 2025, were signed by Akoyemi Ashade and Abiodun Ako.

In accordance with the Fiscal Responsibility Act of 2011, the Central Bank said 20% of the reported income will be credited to the retained income, while the remaining 80% will be transferred to the Federal Government of Nigeria.

From an insight into the sheet sheet, the combined Total CBN assets increased significantly to N117.60 trillion to December 31, 2024, compared to the N87.88 trillion a year before. When viewed separately, the bank's standalone assets rise to N117.44 trillion from the N86.83 trillion. The growth of this possession was strengthened by a rising value of the bank's external reserve, which climbed to the N54.73 trillion from the N29.98 trillion in 2023. There was also a known increase in IMF handling of special drawing rights (SDRs), which increased to N6.36 trillion, from N3.95 trillion.

However, not all categories of possession have recorded positive movements. Cash and bank balances refused steep to N34.72 billion from N111.15 billion last year, while loans and received drops to N10.96 trillion compared to the N15.09 trillion in 2023. This reduction in credit exposure suggests a more careful lending bearing bearing.

On the side of the responsibilities, CBN saw a sharp increase in banknotes and coins in circulation, which increased to N5.44 trillion from N3.65 trillion, emphasizing rising economic currency requests. The total deposits also expand significantly, reaching the N52.38 trillion, from the N38.18 trillion. The bank released N24.27 trillion worth of its financial instruments, from the N17.40 trillion in 2023, which further reflected the active financial operation. Other responsibilities have grown in the N21.20 trillion from the N19.02 trillion, while IMF -related responsibilities are more than double in the N5.07 trillion from N2.52 trillion.

The total responsibility for the group stood on N116.59 trillion in 2024, marking a major increase from the N85.86 trillion last year. This increase exceeds the increase in total possessions, which contributes to a deterioration in equity levels.

Equity equity refused N1.01 trillion from the N2.01 trillion in 2023, while the bank's standalone equity also fell to N728.24 billion from N882.42 billion. Financial statements revealed that the accumulated losses remained reminded, standing on N798.55 billion for the bank, which dropped slightly from N874.82 billion last year. However, the bank reported a fair amount of the N800.78 billion reserve at the end of the financial year.

Despite the long -standing equity pressure and high responsibility, the opinion of the auditing issued a clean bill of health in financial statements, proving that they presented a real and fair perspective on the CBN financial position on December 31, 2024.

The latest disclosure of CBN's finances may play a critical role in shaping policy discourse around financial management and fiscal. However, the analysts note that rebound in profitability, driven by those acquired by Forex revaluation rather than major lending activities, features the ongoing influence of dynamic currencies on the bank balance sheet. It also raised questions about maintaining such income in the absence of a steady foreign exchange market and interest in interest.