As Cardoso reforms continue to yield positive results
From a deficit position of N1.3 trillion in 2023 to a surplus of N165 billion, in 2024 financial year, the Central Bank of Nigeria (CBN) has revealed that the various reforms by Yemi Cardoso led management of the Bank is a huge success; Omeiza Bilal writes.
The Central Bank of Nigeria (CBN) recorded a surplus of N165 billion in 2024 as it moved the ladder from a deficit position of ₦1.3 trillion in 2023.
According to the Bank, the reforms have collectively repositioned CBN as a credible monetary authority, with its 2024 financial results serving as proof of its unwavering resolve to support economic recovery, safeguard financial stability, and build public trust.
This performance shows the reforms are working and it reflects the CBN’s strong commitment to external sector stability, ensuring Nigeria is better positioned to meet its international obligations, stabilise the Naira, and boost macroeconomic confidence.
An indication that Cardoso’s policies are yielding fruits, manifest itself in the country’s external reserves moving from $36.6 billion in 2023 to $ 38.8 billion in 2024.
The growth seems in the reserve is attributes to the improvement in inflows from several portfolio investors diaspora remittances and broad collaboration with the Nigerian National Petroleum Company Limited. The increase in external reserves is important for stability the Naira and meeting our international obligations, it’s a buffer against any unforeseen circumstances. The commitment to ensure stability in the external reserves, is the fight for stable Naira, as Nigeria face numerous economic challenges, strong Naira would help to strengthen the downtrodden, give to macroeconomic in the country.
Analysts have opined that the 2024 financial statement have further vindicated the Apex Bank Governor’s position as seen in the significant improvement in its bottom line. With a deficit position of N1.3 trillion in its 2023 financial report, the regulator did turn the situation around to the path of profitability to a surplus of N165 billion in 2024. This, experts say it is a remarkable achievement. This they have attributed to the CBN’s financial management strategies, that shows how resilient the strategies are in managing the uncontrollable aspects of the fiscal authority.
Another notable success of the report is the improvement in reducing its loans and receivables. The reduction from N16.1 trillion to N11.9 trillion is a major milestone and it also signify a shift in strategy. It’s a strategy to recovery from earlier intervention lending scheme. “Stepping back from intervention lending, the bank allows market mechanism to dictate credit allocation, this, will enhance financial sector development,” the report highlighted.
“The Bank’s decision to jettison intervention lending scheme is a great thinking strategy to promote a robust financial system. Enabling market forces to determine a major role in credit allocation. It’s very essential, not only for the economic efficiency, but for stimulating competition among the financial operators,” the Bank further said.
The report also revealed that the successful implementation of Internal Control over Financial reporting (ICFR) significantly enhanced transparency and accountability within the system.
The Bank said other Operating Expenses in 2024 were well-managed and optimized, reflecting a cost-conscious culture. “This was achieved through strategic cost rationalization initiatives, including reduction in non-essential spending and streamlined operations across regional branches and departments.
“In line with the Financial Reporting Council (FRC) regulatory requirement on ICFR, the Central Bank was able to carry out an assessment of its internal controls which was further certified effective by the joint external audit team.
“As a testament to the effectiveness of this initiative, the joint external auditors issued an independent assurance report declaring the Bank’s ICFR framework to be “effective” for the 2024 reporting period,” it added.
Analysts have agreed that though the country is not where it wants to be, they asserted that the monetary and fiscal authorities move collaborate if the successes recorded in 2024 is to be surpassed.
Many say the various policies so far implemented highlights efforts by the Central Bank towards ensuring the institution is strong enough to respond to emerging economic threat and resilient to absorb uncertainty in economy. It said, “This strategy deployed aims to stabilize the Naira, increase the growth in external reserves, bust confidence for investment.”
“As Nigeria is confronted with numerous economic challenges, there is need to sustain these positive major developments in the economy. This success gives room for hope and constantly evaluating them to see where adjustments are needed for future development. With strong leadership, Nigeria can always navigate its way against global uncertainty and overcome its challenges,” Yemi Cardoso, CBN Governor said.
