By 
Amidst an ongoing investigation into Godwin Emefiele, the suspended governor of the Central Bank of Nigeria (CBN), the latest financial statement of the apex bank reveals an expansion in the balance sheet size, reaching approximately N58 trillion.
Published last week, the CBN’s 2022 financial statement highlighted group profits of N103.854 billion for the year, representing a 20% increase compared to N75.125 billion recorded in the corresponding period of 2021.
This growth was largely driven by a substantial rise in the group’s net interest income, fueled by the monetary policy rate repricing that began in the same year.
The CBN stated that it charged the Federal Government N1.9 trillion on an overdraft facility in 2022, in contrast to the N1.2 trillion interest payment received from the authority in 2021, with an interest rate of MPR+3%.
Fees, commissions, and foreign exchange earnings surged nearly threefold to about N120.582 billion from N41.978 billion in the previous year. In its audited report, the CBN clarified that foreign exchange earnings encompass commission income from foreign currency sales and other related transactions.
Similarly, fees and commissions represent earnings from processing currency, Bureau de Change applications and registrations, commission on fund transfers, as well as application and licensing fees from other banks and financial institutions.
CBN’s profit was further bolstered by the group’s share of profit from equity accounted investees, net of tax, rising by 24.77% from N38.022 billion to N47.349 billion.
However, CBN’s currency issuance expenses surged in 2022 due to a failed demonetization plan that unsettled the economy in the first quarter of 2023. The bank’s audited report revealed a 94.66% year-on-year increase in currency expenses, reaching N29.647 billion from N15.23 billion.
As per the provisions of the Fiscal Responsibility Act 2011, 20% of the Bank’s Net Income will be allocated to retained earnings, while the remainder will be remitted to the Federal Government of Nigeria.
The Group entered into a securities lending agreement with Goldman Sachs and J.P. Morgan. Under this agreement, the Group received cash in exchange for its securities, which were held as collateral for the loan. J.P. Morgan, the global custodian of the Group’s securities, held an equivalent value in securities as collateral for the loan.
The cash received from Goldman Sachs amounted to N0.23 trillion or $500 million, compared with N0.22 trillion or $500 million in 2021. J.P. Morgan held N3.23 trillion or $7 billion in securities, compared to N3.05 trillion ($7 billion) recognized in other foreign securities.
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