- The Central Bank of Nigeria (CBN) reduced its net loans and receivables by over N4tn in 2024, largely by cutting overdraft exposure to the Federal Government under the controversial Ways and Means provision.
- Governor Yemi Cardoso’s reforms led to the securitisation of over N22tn in past advances and aggressive loan recoveries.
The Central Bank of Nigeria (CBN) significantly reduced its net loans and receivables by over N4tn in 2024, reflecting a sharp policy shift under Governor Yemi Cardoso. According to the apex bank’s audited financials, this drop was driven by a reduction in overdraft exposure to the Federal Government, alongside repayments and write-downs across several credit facilities.
ATTENTION: Click “HERE” to join our WhatsApp group and receive News updates directly on your WhatsApp!
The controversial Ways and Means facility—which had ballooned under the previous administration—was cut by nearly 59% from N7.9tn to N3.2tn. In a move to restore fiscal discipline, the National Assembly had previously approved the securitisation of N22.7tn in outstanding advances, converting them to long-term debt instruments.
Governor Cardoso emphasized a departure from the past, stating: “The interventions that took place in the recent past were estimated in excess of N10tn. What was the budget of the federal government? Do the maths—it shows the damage too much of what may appear good can do to an economy.” He added, “The time when we have failed interventions is over. There is no wiggle room to take up interventions that have a great potential to fail.”
READ ALSO: CBN Targets $1bn Monthly Diaspora Remittances with Launch of Digital BVN Platform
CBN recovered N252.9bn from intervention loans in 2024, particularly from programmes like the Anchor Borrowers’ Programme, the Commercial Agricultural Credit Scheme, and the Real Sector Support Facility. Cardoso explained, “We have to ensure that we monitor them to ensure that they come back in, and we’re doing so.”
The financial statement also revealed that several facilities, including the NESI Stabilisation Debenture, were cleared completely. Meanwhile, the bank’s allowance for credit losses rose by N500bn, signaling stricter risk management.
Cardoso reiterated the CBN’s commitment to “transparency” and a monetary policy-focused mandate, moving away from politically influenced credit scheme
Leave a comment