CBN personnel expenses drop by N193 billion after voluntary staff exit

The Central Bank of Nigeria (CBN) reduced its personnel expenses by more than N193 billion in 2025 following the implementation of its voluntary Early Exit Programme, with both the Bank and the Group posting declines in staff costs despite higher spending on currency management and other operating activities.

The CBN’s 2025 audited financial statements show that personnel expenses for the Bank declined by N193.14 billion, or 32.4%, to N402.76 billion in 2025 from N595.90 billion in 2024.

At the Group level, personnel expenses fell by N192.29 billion, or 31.6%, to N416.26 billion from N608.55 billion a year earlier.

The reduction follows the CBN’s voluntary workforce restructuring programme introduced under Governor Olayemi Cardoso as part of efforts to improve operational efficiency and reposition the apex bank.

What the report shows

A breakdown of the personnel expenses shows that the most significant reduction came from other staff expenses.

• For the Bank, other staff expenses dropped to N86.27 billion in 2025 from N305.52 billion in 2024, while other staff allowances increased to N225.97 billion from N191.82 billion.
• Defined benefit plan expenses declined to N28.21 billion from N36.58 billion, while wages and salaries eased slightly to N43.92 billion from N44.49 billion. Pension costs under the defined contribution scheme rose marginally to N18.39 billion from N17.49 billion.
• A similar trend was recorded at the Group level. Other staff expenses declined sharply to N87.13 billion from N306.63 billion, while staff allowances increased to N226.07 billion from N191.95 billion. Defined benefit plan expenses fell to N28.21 billion from N36.58 billion, wages and salaries declined to N56.23 billion from N55.62 billion, and pension costs increased to N18.62 billion from N17.78 billion. These changes reduced total Group personnel expenses to N416.26 billion from N608.55 billion.

Despite the lower annual personnel expenses, employee benefit obligations increased significantly.

The CBN’s employee benefit liabilities rose to N206.09 billion for the Bank from N80.40 billion in 2024, while the Group’s liabilities climbed to N212.28 billion from N79.23 billion. The increase was driven largely by post-employment gratuity liabilities, which rose to N240.32 billion for the Bank and N248.12 billion for the Group.

Savings outweighed by higher operating costs

The decline in payroll expenses did not translate into lower operating costs as other expenditure categories increased substantially.

• For the Bank, currency issue expenses rose by 83.8% to N579.21 billion from N315.18 billion, while the Group recorded a 94.5% increase to N464.13 billion from N238.65 billion. The CBN said these expenses relate to the printing, processing, distribution and disposal of currency notes.
• The Bank therefore spent N176.45 billion more on currency issue expenses than on personnel costs during the year, while the Group spent N47.87 billion more on currency issuance than on staff expenses.
• Other operating expenses also surged. For the Bank, they increased to N1.56 trillion from N248.31 billion, while the Group’s other operating expenses rose to N1.66 trillion from N312.67 billion. Consequently, total operating expenses more than doubled to N2.60 trillion for the Bank and N2.61 trillion for the Group.

Despite the higher expenses, the Bank reported a profit of N86.81 billion in 2025, while the Group recorded a profit of N136.44 billion, up from N38.84 billion in 2024.

What you should know

The reduction in personnel costs comes as the Cardoso-led CBN continues reforms aimed at strengthening governance, improving operational efficiency and enhancing the resilience of the institution. In the 2025 annual report, the Governor said the Bank remained focused on strengthening the financial system, improving governance and reinforcing operational resilience as part of its transformation agenda.

Nairametrics earlier reported that the CBN confirmed the voluntary resignation of 1,000 staff members as part of a restructuring process driven by its ongoing adoption of digital technologies.

The move was aimed at streamlining operations and addressing redundancies arising from the transition to a more tech-driven banking model.