- To remit N87bn to FG’s consolidated revenue fund
The Central Bank of Nigeria’s (CBN) Consolidated and Separate Financial Statements for the year ended 2015 released on Wednesday showed that its net income for the year was N108.530 billion, while its Group net income was N123.074 billion.
The results stated that in line with the provision of the Fiscal Responsibility Act, 20 per cent (N21.706 billion) of the net income of the bank will be credited to its retained earnings while the balance being 80 per cent (N86.824 billion) will be paid to the federal government.
It stated that the preparation of the consolidated and separate financial statements was in conformity with International Financial Reporting Standard (IFRS), which required the use of certain critical accounting estimates and judgements. This, according to the central bank also required management to exercise its judgement in the process of applying IFRS accounting policies.
The results revealed that the Group Operating Income increased by N287.65 billion or 64.6 per cent to N732.51 billion from N444.86 billion in 2014. Also, the Group Operating Expenses rose by N185.72 billion or 42.8 per cent to N618.86 billion from N433.14 billion.
The increase in operating income was as a result of a 93 per cent increase in net interest income, which rose to N132.2 billion in the year under review, from N38.45 billion in 2014.
In the year under review, the central bank recorded N657.16 billion as interests and similar income, representing 132 per cent when compared with N434.77 billion earned in 2014. Conversely, it paid N434.96 billion as interest and similar expense.
Most of the interest earned by the apex bank came from the Asset Management Corporation of Nigeria’s (AMCON) Notes, through which it generated N363.31 million. This was higher than the N323.95 million generated in 2014.
However, most of the interests paid by the central bank were as a result of instruments it issued, which resulted to interest expense of N420.96 billion in 2015, up from N373.58 billion in 2014.
Furthermore, the results showed that foreign exchange revaluation gains represented foreign exchange differences arising on the translation of debt instruments denominated in foreign currencies that are included in external reserves. Foreign exchange revaluation rose from N261.19 billion in 2014 to N565.88 billion in 2015.
Nonetheless, the financial statement revealed that the Nigeria Security Printing and Minting Company (NSPM) recorded a loss of N345 million in 2015. This represented a 94 per cent decline when compared with the N5.5 billion loss incurred in 2014. The company’s revenue rose by N5.31 billion or 29.6 per cent to N23.2 billion from N17.89 billion.
The CBN holds 100 per cent of the share capital in Nigeria Incentive-Based Risk-Sharing System for Agricultural Lending Plc (NIRSAL). The subsidiary was set up by the CBN to spark agricultural industrialization process through increased production and processing of the greater part of the farm produce/output in the country to boost economic earnings across the value chain.
The Bank also holds 99.99 per cent of the share capital in Nigerian Electricity Supply Industry Stabilization Strategy Limited (NESI). The subsidiary is involved in the promotion long term sustainability and efficiency of the Nigeria Electricity Supply Industry through the initiation and encouragement of programmes and the creation of mechanisms and processes fundamental to the growth and bankability of the Nigerian Electricity Supply Industry.