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The Central Bank of Nigeria (CBN) recorded a sharp reduction in personnel expenses in 2025, with staff-related costs falling by ₦193.14 billion, or 32.4 per cent, following the implementation of its voluntary Early Exit Programme.
According to the apex bank’s 2025 audited financial statements, personnel expenses declined from ₦595.90 billion in 2024 to ₦402.76 billion in 2025. At the Group level, personnel costs similarly dropped by ₦192.29 billion, or 31.6 per cent, from ₦608.55 billion to ₦416.26 billion.
The reduction forms part of reforms introduced under CBN Governor Olayemi Cardoso to streamline operations, improve efficiency and reposition the institution amid its transition toward a more technology-driven operating model.
Other Staff Expenses Record Biggest Decline
A breakdown of the figures shows that the largest reduction came from the category of other staff expenses.
For the CBN itself, the expense dropped from ₦305.52 billion in 2024 to ₦86.27 billion in 2025. Meanwhile, staff allowances increased from ₦191.82 billion to ₦225.97 billion.
Defined benefit plan expenses also declined, falling from ₦36.58 billion to ₦28.21 billion, while wages and salaries edged down from ₦44.49 billion to ₦43.92 billion.
Pension expenses under the defined contribution scheme, however, increased slightly from ₦17.49 billion to ₦18.39 billion.
The Group recorded a broadly similar pattern, with other staff expenses falling from ₦306.63 billion to ₦87.13 billion, while staff allowances increased to ₦226.07 billion from ₦191.95 billion.
Employee Benefit Liabilities Rise
Despite the decline in annual personnel expenses, the CBN’s employee benefit obligations increased substantially during the year.
Employee benefit liabilities for the Bank rose to ₦206.09 billion, compared with ₦80.40 billion in 2024. At the Group level, the figure increased to ₦212.28 billion from ₦79.23 billion.
The increase was driven largely by post-employment gratuity liabilities, which reached ₦240.32 billion for the Bank and ₦248.12 billion for the Group.
Currency Management Costs Surge
While staff expenses declined, the CBN faced significantly higher costs in other areas of its operations.
Expenses associated with the printing, processing, distribution and disposal of currency notes increased by 83.8 per cent, reaching ₦579.21 billion in 2025 from ₦315.18 billion a year earlier.
At the Group level, currency issue expenses rose even more sharply by 94.5 per cent, from ₦238.65 billion to ₦464.13 billion.
As a result, the Bank spent ₦176.45 billion more on currency-related expenses than on personnel costs during the year. For the Group, currency issuance costs exceeded staff expenses by ₦47.87 billion.
Operating Expenses More Than Double
The savings achieved through lower personnel costs were overshadowed by significant increases in other operating expenses.
For the Bank, other operating expenses surged from ₦248.31 billion in 2024 to ₦1.56 trillion in 2025. At the Group level, the figure climbed from ₦312.67 billion to ₦1.66 trillion.
Consequently, total operating expenses more than doubled during the year, reaching ₦2.60 trillion for the Bank and ₦2.61 trillion for the Group.
CBN Remains Profitable Despite Higher Costs
Despite the substantial increase in operating expenditure, the CBN remained profitable in 2025.
The Bank reported a profit of ₦86.81 billion, while the Group recorded ₦136.44 billion, significantly higher than the ₦38.84 billion recorded by the Group in 2024.
The stronger Group result came as the apex bank continued implementing reforms focused on governance, operational efficiency and institutional resilience.
Digital Transformation Drives Restructuring
The reduction in personnel expenses follows the CBN’s wider workforce restructuring programme, which included the voluntary exit of about 1,000 employees.
The restructuring was linked to the Bank’s efforts to eliminate redundancies arising from increased digitisation and modernise its operating structure.
The CBN has maintained that the transformation is aimed at ensuring its workforce and resources are aligned with the institution’s changing responsibilities and technology-driven operations.
The 2025 figures therefore present a mixed picture of the apex bank’s transformation: personnel costs have fallen substantially following the workforce restructuring, but savings have been accompanied by steep increases in currency management and other operating expenses.
For the CBN, the challenge ahead will be to ensure that the efficiency gains from its restructuring translate into sustainable improvements in the institution’s overall cost structure and operational performance.
