Nigeria’s Central Bank Spends Big: Personnel Costs Soar 104% to N595.9bn

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The Central Bank of Nigeria (CBN) has disclosed a significant increase in personnel expenses, spending N595.9 billion in 2024, a 104% rise from N291 billion in 2023. The bank’s total operating cost also surged to N1.2 trillion, a 78% increase from N673.4 billion in 2023, with personnel cost accounting for 49.7% of the total cost.

Despite the increased expenditure, the CBN recorded a record surplus of N165.7 billion, compared to a loss of N1.27 trillion in the previous year. The bank attributed its performance to effective containment of expenditure, gains on investments, and increased income from foreign exchange transactions.

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The CBN’s financial statement also revealed an increase in its indebtedness to the International Monetary Fund (IMF), rising from N2.52 trillion to N5.07 trillion. The bank’s deposits also increased by 37% to N52.4 trillion, raising concerns about potential crowding out of the private sector.

The CBN said the financial report reflected its commitment to economic stability, sound policy implementation, and strategic financial management. The bank noted improvements in external reserves, asset quality, cost efficiency, and overall bottom-line improvement.

The report highlighted that external reserves increased from $36.6 billion to $38.8 billion, attributed to improved accretion from portfolio investors, diaspora remittances, and government receipts. The CBN also noted a reduction in loans and receivables from N16.1 trillion to N11.9 trillion due to significant recoveries from earlier intervention lending programmes.

The bank explained that the increase in liquidity management operation cost to N4.5 trillion from N1.5 trillion in 2023 was in line with its tightening monetary policy stance to combat inflationary pressures. The CBN said, “The financial statement reflected the bank’s commitment to economic stability, sound policy implementation and strategic financial management.

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