The Central Bank of Nigeria (CBN) has reduced its net loan exposure to the Federal Government and recovered over N250 billion from intervention programmes in 2024, according to its latest audited financial statements.
The move aligns with the apex bank’s ongoing strategy to reduce fiscal dominance and strengthen monetary policy discipline.
Data from the report shows that the CBN’s net loans and receivables dropped by N4.145 trillion at the bank level, falling from N16.122 trillion in 2023 to N11.977 trillion in 2024.
At the group level, the figure declined from N15.091 trillion to N10.959 trillion, representing a reduction of N4.132 trillion.
A large portion of the decline was attributed to the sharp contraction in Ways and Means advances to the Federal Government. The overdraft facility—used to finance short-term budget gaps—was cut from N7.948 trillion to N3.268 trillion, marking a 58.89 percent reduction year-on-year.
This follows the securitisation of N22.7 trillion in outstanding overdrafts in 2023, which reclassified the exposure as long-term debt.
In parallel, the CBN advanced its phased exit from development finance operations, recovering a total of N252.996 billion from various intervention schemes during the year.
At the bank level, intervention loan balances dropped from N3.336 trillion to N3.083 trillion, while the group-level position decreased from N1.883 trillion to N1.658 trillion.
Among the major programmes, the Anchor Borrowers’ Programme posted the most significant recovery. Outstanding balances declined by N112.92 billion at the group level, falling from N424.83 billion to N311.90 billion.
The Commercial Agricultural Credit Scheme also recorded a repayment of N43.33 billion, while the Real Sector Support Facility showed a N37.51 billion recovery.
Other key recoveries include the BOI Debenture, which reduced by N9.94 billion to N52.05 billion, and the Export Development Facility, down by N802 million to N139.62 billion.
The Non-Oil Export Facility balance fell by N5.86 billion to N8.07 billion.
The apex bank also fully cleared the NESI Stabilisation Strategy Limited Debenture, which stood at N802.92 billion in 2023. This repayment, part of a broader effort to unwind legacy liquidity support to the power sector, contributed to the overall decline in gross loans and receivables.
Gross loan exposure fell by N3.65 trillion at the bank level, from N17.42 trillion to N13.78 trillion. At the group level, gross loans dropped by N3.62 trillion to settle at N12.77 trillion.
Meanwhile, the CBN’s Standing Lending Facility (SLF)—a liquidity window for banks—rose sharply from N29.43 billion in 2023 to N386.90 billion in 2024, indicating a shift towards more conventional liquidity management tools.
The bank also raised its allowance for expected credit losses to N1.801 trillion at the bank level and N1.808 trillion at the group level, reflecting improved credit risk recognition and more conservative provisioning.
The figures underscore the impact of Governor Yemi Cardoso’s reforms aimed at restoring policy credibility, reducing quasi-fiscal activities and reinforcing the independence of the central bank.
Analysts expect the bank to maintain its restrictive stance in the near term as inflationary pressures and fiscal risks persist.
