CBN Releases Long-Awaited Audited Accounts: Posts Robust Profit and Discloses Liabilities

For the first time since 2015, the Central Bank of Nigeria (CBN) has unveiled its eagerly anticipated audited accounts, revealing a profit of N103.8 billion in 2022, the highest recorded since 2017.

Published on the CBN website, the audited results span the past six years, illustrating the apex bank’s financial performance: N124.4 billion in 2016; N107.3 billion in 2017; N43.7 billion in 2018; N34.6 billion in 2019; N30.8 billion in 2020, and N75.1 billion in 2021.

According to the audited results, the ‘Ways and Means’ loans extended to the federal government stood at N23 trillion while it generated interest of N1.9 trillion for the apex bank, an increase from the previous year’s N1.2 trillion.

The CBN’s financial report also highlighted additional earnings of N247 billion and N156 billion from the Asset Management Company of Nigeria (AMCON) and federal government securities, respectively.

Also read: CBN Loans Exceed Statutory Limit by N22.9 Trillion: FRC to Review Compliance

The consolidated financial statements also brought to light significant liabilities. Nigeria’s central bank is indebted to JP Morgan and Goldman Sachs, with a combined sum of $7.5 billion as of the financial year ending December 2022.

In addition, foreign currency forwards account for another $6.3 billion of the liabilities.

The CBN explained, “The Group entered into a securities lending agreement with Goldman Sachs and J.P. Morgan, and as part of the agreement, the Group pledged its holdings on foreign securities in return for cash. The cash received from Goldman Sachs is N0.23 trillion ($500 million), 2021: N0.22 trillion ($500 million), and JP Morgan N3.23 trillion ($7 billion), 2021: N3.05 trillion ($7 billion), is recognized in other foreign securities.”

The audited results reveal the CBN’s remarkable financial resilience over the past eight years, consistently reporting a profit after tax, despite navigating challenges such as currency depreciation and providing intervention funds and loans to the government.

These long-awaited disclosures mark a significant departure from the previous practice of withholding the results from the public during the tenure of former CBN Governor Godwin Emefiele.

The transparency in publishing audited accounts underscores a commitment to open financial reporting, providing insights into the apex bank’s financial health and its contribution to the Nigerian economy.