The Central Bank of Nigeria (CBN) recorded a historic N498.2 billion loss in 2024, driven primarily by a N9.4 trillion foreign exchange revaluation loss, its most significant financial setback in recent memory.
The revaluation loss, which reflects the cost of settling foreign-denominated liabilities at weaker exchange rates, effectively erased the gains from the bank’s interest and fee-based operations.
In stark contrast, the CBN posted an FX gain of N1.2 trillion in 2023, highlighting the scale of deterioration in the country’s exchange rate environment.
The apex bank’s 2024 audited financial statement shows that although it earned N2.87 trillion in interest income and N1.39 trillion in fees and commissions, these inflows were overwhelmed by the FX loss and a rising interest expense burden, which nearly tripled to N1.39 trillion from N498 billion in the prior year.
The surge in interest costs is linked to the CBN’s tightening cycle which stood at 27.5 percent after raising key interest rate by a combined 875 basis points as it ramped up OMO issuances to tame excess liquidity and combat inflation.
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The dramatic FX revaluation loss is rooted in the naira’s depreciation following the June 2023 unification of the country’s multiple exchange rate windows. Since then, the naira has fallen from under N800/$ to about N1,500/$ in official markets, inflating the naira value of the CBN’s external obligations and worsening its balance sheet.
This loss represents the second time in three years that the CBN has posted negative earnings, signaling deeper structural challenges in Nigeria’s monetary management framework.
Analysts warn that such steep losses could limit the CBN’s flexibility to defend the naira or implement independent monetary policy without fiscal support. Despite a rise in total assets to N94.3 trillion from N91.5 trillion and liabilities climbing to N92.2 trillion, the erosion of earnings power raises questions about the sustainability of the apex bank’s current policy mix.
The CBN’s operating expenses also grew to N1.26 trillion in 2024, reflecting the cost of managing monetary operations under pressure. Since assuming office in late 2023, CBN Governor Yemi Cardoso has pushed for transparency and reforms to clean up the bank’s financial reporting and refocus it on core mandates.
Read also: CBN recovers from loss reports N38.8 billion profit in 2024
However, the cost of past policy distortions, including subsidised FX, quasi-fiscal spending, and unchecked credit interventions, are now being laid bare in the institution’s books.
The CBN insists it remains solvent, pointing to its asset base and policy commitments. Yet the FX revaluation loss exposes the high price Nigeria continues to pay for defending an unsustainable currency regime in the face of weak dollar inflows, low oil production, and a fragile investment climate.
