CBN posts N35.4bn net income in 2014

The Central Bank of Nigeria (CBN) earned a net income of N35.4 billion in the 2014 financial year. This figure is, however, less than the N209.6 billion, which the apex bank earned in 2013. This is contained in the CBN’s audited financial statements for 2013 and 2014 posted on its website last Friday.

According to statement issued by the regulator, the two financial statements are International Financial Reporting Standards (IFRS) compliant and have been approved by its Board in accordance with the provisions of the CBN Act 2007. The IFRS, one of the frameworks internationally recognised and accepted, mandates adopters of the framework to prepare consolidated financial statements. The statement further disclosed that 80 per cent of the earned income have since been remitted to the Federal Government in accordance with the Fiscal Responsibility Act while the balance of 20 per cent was also transferred to the reserves within the Bank.

According to the apex bank, “IFRS requirement implies that the financial statement of the CBN be consolidated with those of investee entities, namely Nigeria Export-Import Bank, Abuja Securities and Commodities Exchange, Bank of Industry, Bank of Agriculture, Nigeria Interbank Settlement System, National Economic Reconstruction Fund, Financial Markets Dealers Quotation, African Finance Corporation and Agricultural Credit Guarantee Fund. Thus, the Bank now has full IFRS-compliant financial statements for the years ended 31st December 2013 and 31st December 2014, respectively.”

It explained that before now the regulator’s financial statements had been prepared under the CBN framework. The CBN, however, pointed out that central banks the world are often faced with a lot of challenges trying to adopt IFRS because of the, “number of challenges that include the nonprofit- oriented mandates of central banks in their roles of price and financial system stability and economic growth that could be contradicted by the application of some of these IFRS standards, which are for direct profit- motivated commercial entities.” It also cited what it described as the, ”statutory constraints on the central banks.”