By Atoyebi Nike
The Central Bank of Nigeria (CBN) reduced its net loans and receivables by over N4tn in 2024. The drop reflects a clear move away from heavy deficit financing. At the bank level, loans fell from N16.12tn in 2023 to N11.98tn in 2024. Group-level figures dropped from N15.09tn to N10.96tn.
The largest cut came from the Ways and Means facility. It fell from N7.95tn in 2023 to N3.27tn in 2024—a drop of N4.68tn, or 58.89%. This reduction follows the National Assembly’s 2023 approval to securitize N22.7tn in overdrafts. The Federal Government has repaid N7.3tn so far.
Earnings from this facility dropped sharply, from N1.6tn in 2023 to just N3.1bn in 2024. Meanwhile, long-term loans increased from N2.01tn to N2.72tn. The Standing Lending Facility also surged, rising from N29.43bn to N386.90bn.
The CBN recovered N252.99bn from its intervention loan schemes. Key recoveries include N112.92bn from the Anchor Borrowers’ Programme. The scheme’s outstanding balance dropped from N424.83bn to N311.90bn at the group level. The Commercial Agricultural Credit Scheme saw a repayment of N43.33bn. The Real Sector Support Facility recorded N37.51bn in recoveries. BOI Debentures dropped by N9.94bn. The Export Development Facility was reduced by N802m. N5.86bn was recovered from the Non-Oil Export Facility. The Accelerated Agricultural Development Scheme posted a recovery of N3.38bn. Perpetual Debentures dropped by N3.55bn. The NESI Debenture was fully cleared—falling from N802.92bn to zero.
Provisions for credit losses increased. At the bank level, Expected Credit Loss allowance rose from N1.3tn to N1.80tn. This reflects stricter risk controls and improved loan monitoring.
CBN Governor Yemi Cardoso has led a strong shift in policy. He has criticised past interventions as wasteful and distortionary. “The time when we had failed interventions is over,” he said after the first Monetary Policy Committee meeting of 2024.
Cardoso stressed that past intervention loans—estimated at over N10tn—distorted monetary policy and crowded out private credit. He added that ongoing recoveries would continue and be fully disclosed for transparency.
The bank has stopped accepting new intervention loan applications. However, loan recoveries and repayments are still underway. The 2024 financial report shows clear progress under the new leadership. The CBN is realigning with its core mandate—price stability and sound monetary policy.
