CBN personnel expenses drop by N193 billion after voluntary staff exit

The Central Bank of Nigeria cut its personnel expenses by more than N193 billion in 2025 after implementing a voluntary Early Exit Programme. Audited financial statements show the Bank's staff costs fell 32.4% to N402.76 billion from N595.90 billion, while Group personnel expenses dropped 31.6% to N416.26 billion from N608.55 billion.

What the financial statements show

The decline followed a voluntary workforce restructuring introduced under Governor Olayemi Cardoso. For the Bank, other staff expenses fell sharply to N86.27 billion from N305.52 billion, while other staff allowances rose to N225.97 billion from N191.82 billion.

Defined benefit plan expenses declined to N28.21 billion from N36.58 billion. Wages and salaries eased to N43.92 billion from N44.49 billion, while pension costs under the defined contribution scheme rose to N18.39 billion from N17.49 billion.

The Group followed the same pattern. Other staff expenses dropped to N87.13 billion from N306.63 billion, and staff allowances rose 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.

Employee benefit liabilities climb

Despite lower annual expenses, the CBN's employee benefit obligations jumped. Bank liabilities rose to N206.09 billion from N80.40 billion, while Group liabilities increased to N212.28 billion from N79.23 billion. The rise was driven mainly by post-employment gratuity liabilities, which reached N240.32 billion for the Bank and N248.12 billion for the Group.

Currency and operating costs surge

The payroll savings did not reduce overall operating costs. Currency issue expenses rose 83.8% to N579.21 billion for the Bank from N315.18 billion, and 94.5% to N464.13 billion for the Group from N238.65 billion. The CBN said these costs cover the printing, processing, distribution and disposal of currency notes.

The Bank spent N176.45 billion more on currency issue than on personnel costs during the year. The Group spent N47.87 billion more on currency issuance than on staff expenses.

Other operating expenses also surged. The Bank's other operating expenses hit N1.56 trillion from N248.31 billion, while the Group's rose to N1.66 trillion from N312.67 billion. Total operating expenses more than doubled to N2.60 trillion for the Bank and N2.61 trillion for the Group.

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

What it means for the CBN's reform agenda

The personnel cost reduction is part of the Cardoso-led CBN's efforts to strengthen governance and improve operational efficiency. The CBN earlier confirmed that 1,000 staff members took voluntary exit as the bank adopts more digital technologies and streamlines operations. For Nigerian businesses and consumers, the shift signals a leaner central bank focused on modernising currency management and financial system oversight, though the sharp rise in operating expenses shows the cost of that transformation remains high.