CBN’s 2024 Financial Statements as Indicators of Economic Recovery, by Rahma Olamide Oladosu
In a nation where financial anxieties have become a daily soundtrack for citizens and policymakers alike, the recently released 2024 financial statements of Nigeria have provided an unexpected but welcome note of optimism. The numbers, though not without their caveats, paint a picture of cautious recovery and reveal underlying structural progress that is often masked by short-term volatility. Under the careful supervision of Central Bank Governor Olayemi Cardoso, and a gradually reforming Central Bank of Nigeria (CBN), these statements illuminate a subtle but important narrative: the country may not be out of the woods yet, but it is certainly learning how to walk a better path.
The Central Bank of Nigeria’s 2024 financial statements reflect more than just numbers; they mark a critical shift in institutional behaviour. The results show improvement in external reserves, asset quality, cost efficiency, and a remarkable turnaround in the CBN’s bottom line. In a country long plagued by fiscal indiscipline and blurred lines between monetary and fiscal responsibilities, the results reflect a welcome return to central banking orthodoxy.
Perhaps the most compelling figure in the report is the increase in Nigeria’s external reserves, which rose from $36.6 billion in 2023 to $38.8 billion in 2024. This 6% growth, though modest, is a strong indicator of improved confidence in Nigeria’s external sector. The increase is attributed to better inflows from portfolio investors, stronger diaspora remittances, and enhanced receipts from the Federal Government. Importantly, this growth was facilitated by more effective coordination with the Nigerian National Petroleum Company Ltd (NNPC), the deployment of diaspora engagement strategies, and sound investment management by the CBN. These moves signal a policy regime that prioritises external stability and currency confidence. With a firmer reserve base, Nigeria is now in a better position to stabilise the naira and meet its international obligations, critical milestones for an economy still heavily import-dependent.
Equally notable is the dramatic improvement in the CBN’s financial position. The bottom line swung from a ₦1.3 trillion deficit in 2023 to a ₦165 billion surplus in 2024. This N1.465 trillion turnaround is a powerful demonstration of strategic financial management. It was made possible through a combination of expenditure control, higher investment returns, and increased income from foreign exchange transactions. In an era where central banks around the world are being scrutinised for fiscal overreach, Nigeria’s apex bank has opted for restraint and reform, and the results are already becoming evident.
Another major development is the reduction in loans and receivables from ₦16.1 trillion to ₦11.9 trillion, a significant drop of over ₦4.2 trillion. This reduction wasn’t accidental; it was the result of deliberate policy choices aimed at winding down the CBN’s extensive intervention programmes and curbing monetary financing through “ways and means.” These programmes, while once necessary to prevent economic collapse, had become unsustainable and distortionary. Governor Cardoso’s new approach, which encourages market-based credit allocation, sends a clear signal: the CBN is returning to its core mandate and stepping away from quasi-fiscal activism.
The CBN also succeeded in streamlining operating expenses in 2024, with notable reductions in non-essential spending across regional branches and departments. This efficiency drive is part of a broader cost-conscious culture, reflecting a commitment to institutional reform. In a sector where bureaucratic bloat often chokes productivity, these decisions matter. Strategic cost rationalisation efforts have not only curbed waste but also demonstrated that the bank is capable of self-discipline, something that has long been demanded by both local stakeholders and international partners.
Transparency and governance reforms were further reinforced through the successful adoption of the Internal Control over Financial Reporting (ICFR). In compliance with Financial Reporting Council (FRC) regulations, the CBN assessed its internal controls and earned certification from a joint external audit team, which confirmed the framework’s effectiveness. This achievement enhances the credibility of the financial statements and aligns the Bank with global standards. It’s not just a compliance box ticked, it represents a cultural shift toward openness, accountability, and institutional maturity. The ICFR framework now provides stronger safeguards against internal risks and positions the CBN to better respond to future challenges.
These positive highlights also reflect broader macroeconomic gains. Nigeria’s GDP grew by 3.2% in 2024, a modest yet encouraging pace given the structural headwinds the economy faces. Inflation, while still high at over 18%, has begun to decelerate due to tighter monetary policy and better liquidity management. Though the pain of inflation is still acutely felt by Nigerians, the numbers suggest that the monetary tightening is beginning to yield results. The CBN’s policy rate adjustments have also sent clear signals to the market, anchoring expectations and reinforcing the Bank’s inflation-targeting credibility.
Despite challenges, the capital markets showed signs of revitalisation in 2024. The improved investor sentiment evident in increased portfolio flows and a gradual return of foreign direct investment has been partly driven by the unified exchange rate regime implemented under Cardoso’s leadership. The long-criticised multiple exchange rate windows have been collapsed, reducing arbitrage and boosting confidence in Nigeria’s foreign exchange management. With the exchange rate more reflective of market realities, businesses and investors can now plan with greater clarity.
State-owned enterprises also began to show signs of reform. The Nigerian National Petroleum Company Limited (NNPC Ltd), under closer scrutiny and performance monitoring, contributed higher remittances to the Federation Account in 2024. While structural inefficiencies persist, this upward trend is a signal that reform is beginning to bite where it matters most, which are revenue generation and fiscal accountability.
The Debt Management Office (DMO) also took key steps to improve debt sustainability. Though Nigeria’s public debt rose above ₦90 trillion, restructuring efforts and a greater reliance on concessional borrowing helped reduce immediate repayment pressures. While this is not a solution to the debt problem, it reflects a more strategic, long-term approach to public finance, one that aligns with the macroeconomic stability goals outlined in the CBN’s monetary policy stance.
Yet, all of this progress remains fragile. The population continues to grow faster than the economy, unemployment remains high, and insecurity hampers productivity in key regions. The cost-of-living crisis has yet to ease for millions of Nigerians. But the 2024 financial statements show something Nigerians have been craving for years: signs that the country’s stewards are beginning to act with foresight, caution, and competence.
In a political and economic environment often characterised by sensationalism and cynicism, the 2024 financial statements offer a refreshing counter-narrative. They show that with the right leadership, consistent policy execution, and institutional discipline, even a struggling economy like Nigeria’s can find its footing. Governor Cardoso and the Central Bank of Nigeria deserve commendation not for solving all of Nigeria’s economic woes, but for beginning the process of healing and laying the groundwork for genuine transformation.
In the end, financial statements are more than just a collection of numbers. They are stories of choices made, of discipline enforced, and of hope cautiously renewed. Nigeria’s 2024 fiscal tale, while far from a fairy tale, is one of resilience and gradual reform. And in today’s climate, that in itself is a victory worth acknowledging.
