The Central Bank of Nigeria remains financially stable, as confirmed by Nairametrics. Contrary to online reports suggesting insolvency, the bank’s 2022 annual report reveals a positive financial position.
Critics wrongly compared the bank’s net assets to liabilities, insinuating insolvency.
However, a glance at the financial statements displays a healthy net asset of N1.6 trillion, dispelling bankruptcy concerns.
Insolvency entails negative net assets, signifying shareholder funds depletion.
The bank’s balance sheet, however, reveals consistent positive growth in net assets from 2018 to 2022: N796 billion, N1.01 trillion, N1.09 trillion, N1.2 trillion, and N1.5 trillion, respectively.
Remarkably, the apex bank’s balance sheet has expanded significantly from N13.6 trillion in 2014 to N57.9 trillion in 2022 a fourfold increase in 8 years.
This validates Nairametrics’ analysis of the bank’s pivotal role in monetary expansion.
The money supply in Nigeria surpassed N50 trillion by December 2022, surging past N60 trillion in June 2023.
A thorough review of the balance sheet pinpoints liability increases as the primary driver of expansion.
The bank’s actions, including CRR debits and various intervention funds, contributed to this expansion.
While aiding economic growth, the outcome has been elevated inflation alongside modest economic advancement.
Below is the link to CBN’s balance sheet (image attached).
I just read somewhere that CBN was “flirting with insolvency” or “bankrupt”🤦🏽♂️🤦🏽♂️
That is absolutely untrue. The level of misinformation out there is crazy.
That’s CBN balance sheet right there (image attached).
Net asset has actually been growing. pic.twitter.com/lxkvaIL4s6
— Ugodre (@ugodre) August 12, 2023
