The Central Bank of Nigeria (CBN) recorded a sharp reduction of N4.145 trillion in net loans and receivables in 2024, driven by a sweeping retrenchment in overdraft exposure to the Federal Government and phased wind-downs of interventionist lending programmes.
According to the apex bank’s audited financial statements, net loans fell from N16.12tn in 2023 to N11.98tn in 2024, while gross loans at the bank level also dipped significantly by N3.65tn, marking a strategic shift under Governor Olayemi Cardoso’s leadership.
A major contributor to the contraction was the overdraft under the controversial Ways and Means facility, which was slashed from N7.95tn to N3.27tn—a 58.89% decline. The repayment follows the National Assembly’s 2023 securitisation of N22.7tn previously extended to the Federal Government.
Meanwhile, the CBN ramped up recoveries from its interventionist lending schemes, reclaiming N252.996bn in 2024, including N112.92bn from the widely criticised Anchor Borrowers’ Programme. Other recoveries came from the Commercial Agricultural Credit Scheme, BOI Debentures, and Real Sector Support Facility.
The statement also highlighted:
- A rise in the Standing Lending Facility from N29.43bn to N386.9bn, signaling improved liquidity operations.
- Long-term loans increased by N712.67bn, showing sustained financing of select development projects.
- Intervention loans fell by N252.996bn at the bank level and N224.64bn at the group level.
- The NESI Stabilisation Strategy Ltd debenture for the power sector, worth N802.9bn, was fully cleared.
- Expected Credit Loss provisions grew from N1.3tn to N1.8tn, reflecting tighter risk recognition.
Governor Cardoso, who took office in 2023, has distanced the bank from the aggressive intervention financing model of the past, stating that excessive interventions “create distortions” and compromise monetary policy goals.
“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,” Cardoso said at a post-MPC briefing.
Analysts say the developments mark a clear pivot toward conventional monetary policy and fiscal prudence, though debates continue on whether the wind-down of intervention schemes might adversely affect sectors reliant on such funding.
