The Central Bank of Nigeria’s 2025 audited financial statements have attracted attention because they show a significant reduction in personnel expenses. The bank’s group personnel costs fell from ₦608.5 billion in 2024 to ₦416.3 billion in 2025, representing a 31.6 per cent decline. At the bank level, personnel expenses also dropped by 32.4 per cent, from ₦595.9 billion to ₦402.8 billion.
At first glance, the figures appear to suggest that the CBN has become more efficient under Governor Olayemi Cardoso. However, a closer look at the numbers raises questions about whether the reduction actually reflects improved efficiency or is largely the result of the reversal of an unusual expense recorded in 2024.
The CBN’s personnel expenses more than doubled in 2024, but this was not mainly because salaries increased dramatically. A large part of the increase came from payments connected to the bank’s staff exit programme. Other staff expenses rose from ₦37.8 billion in 2023 to ₦306.6 billion in 2024, largely because of these early-exit payments. By 2025, that figure had fallen sharply to ₦87.1 billion.
This means that much of the decline recorded between 2024 and 2025 may simply represent the disappearance of an exceptional cost rather than proof that the CBN has dramatically improved the way it operates.
There is also a need to look beyond the headline figures. While other staff expenses fell sharply, wages and salaries actually increased slightly, from ₦55.6 billion to ₦56.2 billion. Other staff allowances also rose from ₦191.9 billion to ₦226.1 billion.
The CBN may indeed be making progress with its restructuring efforts, but the available figures alone are not enough to conclusively establish that the institution has become more efficient. The 2025 personnel expenditure of ₦416.3 billion was still about 41 per cent higher than the ₦295.4 billion recorded in 2023.
For this reason, more information is needed to properly assess the impact of the restructuring. Important questions include how many employees the CBN had in 2023, 2024 and 2025, how much the staff exit programme reduced the workforce, the average personnel cost per employee, and what is contained in the ₦226.1 billion recorded as other staff allowances.
The most important issue, however, is not simply whether the CBN spent less money. True operational efficiency means achieving the same or better results with fewer resources, or delivering improved outcomes with the resources available.
This distinction is particularly important for a central bank because its performance cannot be measured by its payroll alone. The CBN is responsible for monetary policy, financial-system supervision, currency management and payment infrastructure, among other functions. A smaller institution would not necessarily be more efficient if it performed these responsibilities poorly.
The Cardoso administration deserves credit for reducing personnel expenditure, particularly after the exceptional costs associated with the 2024 staff exit programme. However, the reduction should not automatically be presented as conclusive evidence of improved operational efficiency.
The real test will be whether the restructuring ultimately produces a CBN that is more focused, more productive and more capable of delivering its responsibilities effectively. The cost of restructuring may have fallen, but Nigerians will ultimately want to see clear improvements in the bank’s performance.
