The Central Bank of Nigeria (CBN) recorded a sharp drop of ₦4.145 trillion in its net loans and receivables for 2024, largely due to a reduction in overdraft exposure to the Federal Government and other key loan categories.
According to its audited financial statements, the bank-level net loans and receivables declined from ₦16.122 trillion in 2023 to ₦11.977 trillion in 2024. On the group level, the figure fell from ₦15.091 trillion to ₦10.959 trillion, marking a ₦4.132 trillion decrease.
The major decline stemmed from the Ways and Means overdraft facility extended to the Federal Government. This facility, which enables the CBN to offer temporary funding to cover federal shortfalls, dropped significantly from ₦7.948 trillion in 2023 to ₦3.268 trillion in 2024, a 58.89% reduction.
Previously criticized for excessive use under past administrations, the National Assembly approved the securitisation of ₦22.7 trillion in 2023 to convert these overdrafts into long-term debt instruments. So far, the Federal Government has repaid ₦7.3 trillion, signaling a commitment to curbing central bank dependency and reinforcing fiscal discipline.
Under Governor Yemi Cardoso’s reform agenda, the CBN’s earnings from overdraft interest also plummeted from ₦1.6 trillion in 2023 to just ₦3.1 billion in 2024. Conversely, the Standing Lending Facility (SLF) rose from ₦29.431 billion to ₦386.904 billion, reflecting greater activity in short-term interbank liquidity management.
The CBN also saw an increase in long-term loans from ₦2.009 trillion to ₦2.722 trillion, indicating continued engagement in targeted long-term financing. However, while legacy exposures like AMCON Notes rose to ₦4.136 trillion (from ₦3.902 trillion), “Other Loans” dipped slightly to ₦530.655 billion at the group level.
Promissory Notes worth ₦23.028 billion and the ₦802.918 billion NESI Stabilisation Strategy Limited Debenture were fully cleared in 2024, further contributing to the reduction in total gross loans. Group gross loans fell from ₦16.391 trillion to ₦12.767 trillion, while bank-level figures dropped from ₦17.422 trillion to ₦13.778 trillion.
At the same time, Expected Credit Losses allowance rose from ₦1.3 trillion to ₦1.801 trillion at the bank level, and to ₦1.808 trillion at the group level—indicating enhanced credit risk management.
Under Cardoso’s leadership, the CBN also began winding down controversial development finance interventions. A total of ₦252.996 billion was recovered from various loan programmes in 2024. Intervention loans dropped from ₦3.336 trillion to ₦3.083 trillion at the bank level, and from ₦1.883 trillion to ₦1.658 trillion at the group level.
Significant recoveries came from:
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Anchor Borrowers’ Programme: ₦112.922bn recovered (₦408.801bn to ₦296.830bn)
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Commercial Agricultural Credit Scheme: ₦43.33bn recovered
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Real Sector Support Facility: ₦37.507bn recovered
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BOI Debenture: ₦9.941bn recovered
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Export Development Facility: ₦802m recovered
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Non-Oil Export Facility: ₦5.855bn recovered
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Accelerated Agricultural Development Scheme: ₦3.375bn recovered
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Perpetual Debentures: ₦3.547bn recovered
Other interventions such as the Nigerian Youth Investment Fund slightly increased to ₦112 million, while balances for Advances to the Federal Mortgage Bank and Nigerian Treasury Bonds remained unchanged.
The NESI Stabilisation Strategy Loan also dropped by ₦8.461 billion to ₦368.371 billion, rounding out a year of significant restructuring and realignment in the CBN’s lending portfolio.
These developments underscore the CBN’s strategic pivot toward transparency, reduced fiscal dominance, and more prudent financial stewardship under its current leadership.
ADEOLA KUNLE
