CBN Cuts Personnel Cost by N193bn, Workers’ Expenses Decline 32.4% to N402.76bn

• Currency management cost jumps 83.8% to N579.21bn

• Operating expenses more than double to N2.60tn

The Central Bank of Nigeria (CBN) reduced its personnel expenses by N193.14 billion in 2025, following the implementation of its voluntary Early Exit Programme and other measures introduced to streamline operations at the apex bank.

The CBN’s audited financial statements for the year ended December 31, 2025, showed that personnel expenses declined by 32.4 per cent to N402.76 billion, from N595.90 billion recorded in 2024.

Nairametrics reported that at the group level, personnel expenses similarly dropped by N192.29 billion, or 31.6 per cent, from N608.55 billion in 2024 to N416.26 billion last year.

The decline followed the implementation of the voluntary workforce restructuring programme under CBN Governor, Mr. Olayemi Cardoso, as part of ongoing reforms to improve operational efficiency and reposition the institution.

A breakdown of the bank’s personnel expenses showed that the largest reduction was in other staff expenses, which plunged from N305.52 billion in 2024 to N86.27 billion in 2025, representing a decline of N219.25 billion.

However, other staff allowances increased from N191.82 billion to N225.97 billion during the same period.

Expenses relating to the defined benefit plan declined to N28.21 billion from N36.58 billion, while wages and salaries eased marginally to N43.92 billion from N44.49 billion.

Pension costs under the defined contribution scheme, however, rose to N18.39 billion from N17.49 billion in the preceding year.

The group recorded a similar movement in its cost structure, with other staff expenses falling sharply from N306.63 billion in 2024 to N87.13 billion in 2025, while staff allowances increased from N191.95 billion to N226.07 billion.

Defined benefit plan expenses declined from N36.58 billion to N28.21 billion, while pension costs under the defined contribution scheme increased from N17.78 billion to N18.62 billion.

Despite the significant reduction in annual personnel expenses, the CBN’s employee benefit obligations rose sharply during the year.

Employee benefit liabilities for the bank increased to N206.09 billion in 2024, up from N80.40 billion, while the group’s liabilities climbed to N212.28 billion, up 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.

The reduction in personnel costs, however, failed to translate into a corresponding decline in the apex bank’s overall operating expenses, as expenditure on currency management and other operations rose substantially during the year.

Currency issue expenses for the bank jumped by 83.8 per cent to N579.21 billion in 2025 from N315.18 billion in 2024.

The CBN explained that currency issue expenses comprised costs associated with the printing, processing, distribution and disposal of currency notes.

At the group level, currency issue expenses rose by 94.5 per cent to N464.13 billion from N238.65 billion in the previous year.

This meant that the Bank spent N176.45 billion more on currency issuance than its entire N402.76 billion personnel bill during the year.

Other operating expenses also rose sharply, climbing to N1.56 trillion for the bank from N248.31 billion in 2024, while the group recorded N1.66 trillion, compared with N312.67 billion in the previous year.

Consequently, total operating expenses more than doubled for the bank to N2.60 trillion and for the Group to N2.61 trillion, indicating that increases in other expenditure areas substantially outweighed savings from the workforce restructuring.

Despite a surge in operating expenses, the Bank closed the 2025 financial year with a profit of N86.81 billion, while the Group recorded a profit of N136.44 billion, up from N38.84 billion in 2024.

The reduction in personnel expenses followed the voluntary exit of about 1,000 employees from the apex bank as part of the restructuring exercise undertaken by the Cardoso-led management.