CBN Reports N1.2 Trillion Personnel Costs Over Seven Years, Records N520.04 Billion Net Income

*‘Furniture, Housing, Transport’ — CBN Staff Allowances Gulped N155bn In 2022

The Central Bank of Nigeria (CBN) has disclosed that it expended a total of N1.2 trillion on personnel costs over a span of seven years, while achieving a net income of N520.04 billion during the same period.

The audited financial accounts of the apex bank for the years 2016 to 2022, unveiled on Friday, showcased significant fluctuations in its profit between 2016 and 2022. Additionally, staff emoluments saw a consistent increase of 119 percent throughout these seven years.

The financial report indicated a decline in profit from N124.47 billion in 2016 to N43.77 billion in 2018, followed by further declines to N34.63 billion in 2019 and N30.81 billion in 2020. However, the trend reversed, showing an upward surge to N75.12 billion in 2021 and a substantial leap to N103.85 billion in 2022.

Throughout this period, staff emoluments rose steadily, commencing at N121.229 billion in 2016, and escalating to N265.87 billion in 2022. The financial statement, authorized by the suspended governor of the bank, Godwin Emefiele, and audited by Ernst & Young and KPMG, unveiled that credit loss expense for the banking regulator soared to N875.2 billion in 2022, compared to N498.2 billion in 2021.

Of note, lending to the government constituted 74 percent of the loans and receivables, contributing N610 billion to the total impairment loss and credit loss expenses for the year. Ernst & Young and KPMG highlighted the impairment of loans and advances as a key audit matter due to the complexity involved in estimating the key assumptions impacting loan recoverability.

The bank’s balance sheet witnessed a significant expansion from N21.91 trillion in 2016 to N57.99 trillion by the end of 2022, accompanied by an increase in liabilities from N21.22 trillion to N56.39 trillion.

The financial report also highlighted other aspects, including N422.7 billion in income from debt instruments measured at fair value through profit and loss (FVTL), and N888.3 billion in other operating expenses in 2022, including losses arising from foreign exchange revaluation losses and rebate expenses related to RT 200 and Naira4Dollar schemes.

Moreover, the report disclosed that staff allowances, including furniture, housing, leave, transport, productivity allowances, and others, amounted to N90 billion more than the bank’s recorded profit of N65.63 billion within the reviewed period. It is also 37.2 percent higher than the N113.35 billion expended on staff allowances in 2021.

Additionally, the financial statement revealed that CBN disbursed N40.66 billion on staff loans in 2022, marking a 133.3 percent increase compared to the N17.42 billion disbursed in 2021. The bank, however, did not provide details regarding the number of staff members who benefited from the loans.