CBN’s 2024 Monetary Statements as Indicators of Financial Restoration, by Rahma Olamide Oladosu

In a nation the place monetary anxieties have turn into a each day soundtrack for residents and policymakers alike, the not too long ago launched 2024 monetary statements of Nigeria have supplied an surprising however welcome word of optimism. The numbers, although not with out their caveats, paint an image of cautious restoration and reveal underlying structural progress that’s usually masked by short-term volatility. Below the cautious supervision of Central Financial institution Governor Olayemi Cardoso, and a steadily reforming Central Financial institution of Nigeria (CBN), these statements illuminate a refined however essential narrative: the nation will not be out of the woods but, however it’s definitely studying tips on how to stroll a greater path.

The Central Financial institution of Nigeria’s 2024 monetary statements replicate extra than simply numbers; they mark a vital shift in institutional behaviour. The outcomes present enchancment in exterior reserves, asset high quality, value effectivity, and a exceptional turnaround within the CBN’s backside line. In a rustic lengthy suffering from fiscal indiscipline and blurred strains between financial and monetary tasks, the outcomes replicate a welcome return to central banking orthodoxy.

Maybe essentially the most compelling determine within the report is the rise in Nigeria’s exterior reserves, which rose from $36.6 billion in 2023 to $38.8 billion in 2024. This 6% progress, although modest, is a powerful indicator of improved confidence in Nigeria’s exterior sector. The rise is attributed to higher inflows from portfolio traders, stronger diaspora remittances, and enhanced receipts from the Federal Authorities. Importantly, this progress was facilitated by simpler coordination with the Nigerian Nationwide Petroleum Firm Ltd (NNPC), the deployment of diaspora engagement methods, and sound funding administration by the CBN. These strikes sign a coverage regime that prioritises exterior stability and foreign money confidence. With a firmer reserve base, Nigeria is now in a greater place to stabilise the naira and meet its worldwide obligations, vital milestones for an economic system nonetheless closely import-dependent.

Equally notable is the dramatic enchancment within the CBN’s monetary place. The underside line swung from a ₦1.3 trillion deficit in 2023 to a ₦165 billion surplus in 2024. This N1.465 trillion turnaround is a robust demonstration of strategic monetary administration. It was made attainable by way of a mix of expenditure management, greater funding returns, and elevated revenue from overseas alternate transactions. In an period the place central banks around the globe are being scrutinised for fiscal overreach, Nigeria’s apex financial institution has opted for restraint and reform, and the outcomes are already changing into evident.

One other main improvement is the discount in loans and receivables from ₦16.1 trillion to ₦11.9 trillion, a big drop of over ₦4.2 trillion. This discount wasn’t unintended; it was the results of deliberate coverage decisions aimed toward winding down the CBN’s in depth intervention programmes and curbing financial financing by way of “methods and means.” These programmes, whereas as soon as needed to stop financial collapse, had turn into unsustainable and distortionary. Governor Cardoso’s new strategy, which inspires market-based credit score allocation, sends a transparent sign: the CBN is returning to its core mandate and stepping away from quasi-fiscal activism.

The CBN additionally succeeded in streamlining working bills in 2024, with notable reductions in non-essential spending throughout regional branches and departments. This effectivity drive is a part of a broader cost-conscious tradition, reflecting a dedication to institutional reform. In a sector the place bureaucratic bloat usually chokes productiveness, these selections matter. Strategic value rationalisation efforts haven’t solely curbed waste but additionally demonstrated that the financial institution is able to self-discipline, one thing that has lengthy been demanded by each native stakeholders and worldwide companions.

Transparency and governance reforms have been additional bolstered by way of the profitable adoption of the Inside Management over Monetary Reporting (ICFR). In compliance with Monetary Reporting Council (FRC) laws, the CBN assessed its inner controls and earned certification from a joint exterior audit staff, which confirmed the framework’s effectiveness. This achievement enhances the credibility of the monetary statements and aligns the Financial institution with world requirements. It’s not only a compliance field ticked, it represents a cultural shift towards openness, accountability, and institutional maturity. The ICFR framework now supplies stronger safeguards in opposition to inner dangers and positions the CBN to higher reply to future challenges.

These constructive highlights additionally replicate broader macroeconomic positive aspects. Nigeria’s GDP grew by 3.2% in 2024, a modest but encouraging tempo given the structural headwinds the economic system faces. Inflation, whereas nonetheless excessive at over 18%, has begun to decelerate as a consequence of tighter financial coverage and higher liquidity administration. Although the ache of inflation continues to be acutely felt by Nigerians, the numbers counsel that the financial tightening is starting to yield outcomes. The CBN’s coverage charge changes have additionally despatched clear alerts to the market, anchoring expectations and reinforcing the Financial institution’s inflation-targeting credibility.

Regardless of challenges, the capital markets confirmed indicators of revitalisation in 2024. The improved investor sentiment evident in elevated portfolio flows and a gradual return of overseas direct funding has been partly pushed by the unified alternate charge regime carried out beneath Cardoso’s management. The long-criticised a number of alternate charge home windows have been collapsed, decreasing arbitrage and boosting confidence in Nigeria’s overseas alternate administration. With the alternate charge extra reflective of market realities, companies and traders can now plan with higher readability.

State-owned enterprises additionally started to indicate indicators of reform. The Nigerian Nationwide Petroleum Firm Restricted (NNPC Ltd), beneath nearer scrutiny and efficiency monitoring, contributed greater remittances to the Federation Account in 2024. Whereas structural inefficiencies persist, this upward development is a sign that reform is starting to chunk the place it issues most, that are income era and monetary accountability.

The Debt Administration Workplace (DMO) additionally took key steps to enhance debt sustainability. Although Nigeria’s public debt rose above ₦90 trillion, restructuring efforts and a higher reliance on concessional borrowing helped cut back quick reimbursement pressures. Whereas this isn’t an answer to the debt drawback, it displays a extra strategic, long-term strategy to public finance, one which aligns with the macroeconomic stability objectives outlined within the CBN’s financial coverage stance.

But, all of this progress stays fragile. The inhabitants continues to develop quicker than the economic system, unemployment stays excessive, and insecurity hampers productiveness in key areas. The associated fee-of-living disaster has but to ease for thousands and thousands of Nigerians. However the 2024 monetary statements present one thing Nigerians have been longing for years: indicators that the nation’s stewards are starting to behave with foresight, warning, and competence.

In a political and financial surroundings usually characterised by sensationalism and cynicism, the 2024 monetary statements provide a refreshing counter-narrative. They present that with the suitable management, constant coverage execution, and institutional self-discipline, even a struggling economic system like Nigeria’s can discover its footing. Governor Cardoso and the Central Financial institution of Nigeria deserve commendation not for fixing all of Nigeria’s financial woes, however for starting the method of therapeutic and laying the groundwork for real transformation.

In the long run, monetary statements are greater than only a assortment of numbers. They’re tales of decisions made, of self-discipline enforced, and of hope cautiously renewed. Nigeria’s 2024 fiscal story, whereas removed from a fairy story, is considered one of resilience and gradual reform. And in at present’s local weather, that in itself is a victory value acknowledging.