The Central Bank of Nigeria (CBN) has disclosed that it extended a staggering N40.67 billion in loans to its staff members during the year 2022, representing an increase of 133% compared to the previous year’s disbursements.
This revelation has raised eyebrows and sparked discussions about the financial dynamics within the apex bank.
The audited financial statement for 2022 unveiled this substantial increase in staff loans, leaving many curious about the reasons behind such a significant surge.
However, specific details about the number of staff members who benefited from these loans were notably absent from the report, leaving room for speculation about the extent of this financial assistance.
Interestingly, the substantial rise in staff loans occurred alongside an increment in staff allowances, amounting to a total of N155.63 billion for the same year. This amount, which covered various categories such as furniture, housing, leave, transport, productivity, and other benefits, dwarfed the recorded profit of N65.63 billion for the year.
Analyzing the seven-year period from 2016 to 2022, the CBN’s financial performance reveals a roller-coaster journey. There was a sharp decline in profits from N124.47 billion in 2016 to N43.77 billion in 2018, followed by a period of recovery leading up to a notable jump to N103.85 billion in 2022.
This trajectory is in tandem with staff emoluments, which steadily rose by 119% during the same period, peaking at a remarkable N265.87 billion in 2022.
The CBN’s financial dichotomy, with escalating staff costs and an impressive credit loss expense that rose to N875.2 billion in 2022, indicates a need for careful financial management.
This revelation underscores the importance of maintaining a delicate balance between providing support to staff members and ensuring the institution’s fiscal prudence, particularly in a period marked by economic challenges and uncertainties.