By Kehinde Ibrahim, Lagos
There are indications that ongoing institutional transformation embarked by the Central Bank of Nigeria, CBN, is beginning to deliver measurable financial and operational benefits as the bank recorded a significant improvement in its personnel cost structure.
The apex bank’s 2025 audited financial statements showed that personnel expenses declined by N193.14 billion, representing a 32.4 per cent reduction from N595.90 billion in 2024 to N402.76 billion in 2025. At the Group level, personnel expenses also fell by N192.29 billion, or 31.6 per cent, from N608.55 billion to N416.26 billion during the same period.
The substantial reduction marks one of the clearest financial outcomes of the workforce restructuring programme introduced by the CBN under Governor Olayemi Cardoso. The initiative, which included a voluntary Early Exit Programme, forms part of a broader effort to strengthen institutional efficiency, streamline operations and position the apex bank to respond more effectively to the changing demands of Nigeria’s financial system.
Beyond the immediate reduction in expenditure, the development points to a deliberate attempt to create a more efficient organisational structure in which financial and human resources are directed towards areas with the greatest strategic importance.
For an institution responsible for monetary and financial stability, banking-sector regulation, currency management and the overall soundness of Nigeria’s financial system, the effective deployment of resources is critical. The strength of a central bank is determined not simply by the number of employees it has, but by the quality of its personnel, the efficiency of its processes and its ability to deploy specialised expertise where it is most needed.
The 2025 financial results indicate that the CBN is making progress in aligning its workforce-related expenditure with these priorities.
One of the most notable changes was the sharp decline in other staff expenses, which fell from N305.52 billion in 2024 to N86.27 billion in 2025 at the Bank level. The reduction was sufficiently large to offset increases recorded in some other employee-related expenditure categories.
Other staff allowances increased from N191.82 billion to N225.97 billion, while pension expenses under the defined contribution scheme rose moderately from N17.49 billion to N18.39 billion. Defined benefit plan expenses, however, declined from N36.58 billion to N28.21 billion, while wages and salaries eased marginally from N44.49 billion to N43.92 billion.
At the Group level, other staff expenses followed a similar pattern, declining from N306.63 billion to N87.13 billion. Staff allowances increased from N191.95 billion to N226.07 billion, while defined benefit plan expenses fell to N28.21 billion. Wages and salaries stood at N56.23 billion, while pension costs under the defined contribution scheme rose to N18.62 billion.
The overall result was a substantial reduction in total personnel expenses, bringing Group personnel costs down to N416.26 billion.
The scale of the decline demonstrates the impact that a carefully structured workforce transition can have on the recurring expenditure profile of a large institution. It also provides the CBN with greater room to redirect resources towards strategic functions that are increasingly important to the stability and development of the Nigerian financial system.
The voluntary nature of the Early Exit Programme is particularly significant. Rather than relying solely on compulsory workforce reductions, the programme provided eligible employees with an avenue to leave the institution as part of the broader organisational restructuring process.
Such an approach can help institutions manage workforce transitions while addressing existing organisational structures and aligning staffing levels with evolving operational requirements.
The reform also reflects the wider transformation agenda under Cardoso, which has placed emphasis on institutional effectiveness, governance, operational resilience and strengthening confidence in the apex bank.
The timing of the reforms is important because Nigeria’s financial system is undergoing profound changes. The expansion of digital financial services, rapid developments in fintech, evolving payment systems, foreign-exchange market reforms, changing monetary policy dynamics and increased cybersecurity risks have altered the demands placed on financial regulators.
These developments require a central bank that is responsive, technologically capable and able to deploy specialised expertise quickly.
A more streamlined organisational structure could help facilitate that objective by allowing the CBN to focus its resources on critical areas including monetary policy research, financial-system supervision, technology, risk management, cybersecurity, financial stability and operational resilience.
Consequently, the reduction in personnel expenditure should not be viewed merely as an exercise in cutting costs. Its broader significance lies in the opportunity to build a more focused institution with a workforce structure that better reflects the responsibilities of a modern central bank.
The financial statements also demonstrate that the CBN continued to commit substantial resources to its core statutory functions during the year.
Currency issue expenses, for instance, increased considerably, rising by 83.8 per cent at the Bank level from N315.18 billion in 2024 to N579.21 billion in 2025. At the Group level, currency issue expenses increased by 94.5 per cent, from N238.65 billion to N464.13 billion.
The CBN explained that these expenses relate to the printing, processing, distribution and disposal of currency notes.
The increase highlights the resources required to maintain an effective currency management system in an economy where cash remains an important means of conducting transactions. The responsibilities of the apex bank extend beyond the production of banknotes. It must ensure adequate availability of currency, process notes returned by financial institutions, withdraw unfit notes from circulation and maintain an efficient distribution system across the country.
Investment in currency management therefore remains an essential part of maintaining confidence in the nation’s monetary infrastructure.
The increase in currency-related expenses also illustrates why institutional efficiency should not be defined simply as a reduction in overall expenditure. Some costs are essential to fulfilling the CBN’s statutory responsibilities, while others can be optimised through improved structures, processes and resource allocation.
The objective is ultimately to ensure that available resources generate maximum institutional value.
The CBN also recorded substantial expenditure under other operating activities during the year. At the Bank level, other operating expenses increased from N248.31 billion in 2024 to N1.56 trillion in 2025, while the Group recorded an increase from N312.67 billion to N1.66 trillion.
The significant increase reflects the scale and complexity of activities associated with operating and transforming a central bank in an increasingly sophisticated financial environment.
Institutional transformation requires investment. Improvements in governance, technology, infrastructure, systems, controls, cybersecurity and operational resilience cannot be achieved without adequate financial commitment.
For this reason, the increase in operating expenses needs to be considered alongside the CBN’s broader transformation objectives and its continuing responsibility to maintain the stability of Nigeria’s financial system.
Despite the increase in expenditure across some categories, the CBN remained profitable during the year, recording a profit of N86.81 billion in 2025, compared with N38.84 billion in 2024. At the Group level, profit increased to N136.44 billion.
The stronger financial result provides another positive indication of the institution’s performance during a period of significant operational and organisational change.
While profitability is not the primary measure of success for a central bank, maintaining a sound financial position is nevertheless important. A financially stable institution is better placed to support its operations, invest in critical capabilities and fulfil its statutory responsibilities effectively.
The financial statements also revealed an increase in employee benefit liabilities. Employee benefit liabilities for the Bank rose from N80.40 billion in 2024 to N206.09 billion in 2025, while Group liabilities increased from N79.23 billion to N212.28 billion.
Post-employment gratuity liabilities represented a significant component of these obligations, reaching N240.32 billion for the Bank and N248.12 billion for the Group.
These liabilities demonstrate that workforce restructuring carries transitional financial obligations that must be carefully managed. However, they also reflect the institution’s recognition of its responsibilities to employees affected by organisational changes.
The long-term success of the restructuring will ultimately depend on whether the immediate and transitional costs associated with the programme are outweighed by sustainable reductions in recurring expenditure and improvements in institutional productivity.
The substantial reduction in personnel costs provides an encouraging foundation.
A leaner workforce structure can create opportunities to redirect resources towards specialised capabilities that are increasingly important to central banking. These include technology, data analytics, financial-sector supervision, cybersecurity, monetary policy research, risk management and financial-market operations.
The global financial environment is changing rapidly. Central banks are increasingly required to respond to technological disruption, digital currencies and payment systems, cybersecurity threats, artificial intelligence, sophisticated financial markets and rapidly changing patterns of economic activity.
Nigeria is part of this global transformation.
The CBN therefore requires a workforce capable of combining traditional central banking expertise with new technological, analytical and risk-management capabilities
Workforce restructuring, when properly managed, can support this objective by creating room for the institution to prioritise expertise and skills that are aligned with current and future challenges.
The emphasis on efficiency also fits into the broader national conversation around public-sector reform. Increasingly, stakeholders are demanding greater accountability, transparency and value for money in the management of public resources.
The reduction in personnel expenditure demonstrates that significant cost efficiencies can be achieved through structured institutional reforms.
However, sustaining the gains will require continued attention to workforce planning, succession management and professional development.
The objective should not simply be to maintain a smaller workforce. Rather, the focus should be on building a workforce that is more productive, highly skilled and better aligned with the institution’s strategic responsibilities.
The CBN will also need to ensure that the restructuring does not create gaps in critical functions. Monetary policy, banking supervision, financial-market operations, foreign-exchange management, currency administration, financial stability and cybersecurity all require highly specialised expertise.
The success of the transformation will therefore depend on the institution’s ability to strike the right balance between efficiency and capacity.
The 2025 financial results provide evidence that this process is progressing.
The sharp decline in other staff expenses and the overall reduction in personnel costs demonstrate that the CBN has made substantial progress in reshaping its expenditure profile. At the same time, the institution continued to invest heavily in currency management and other operational activities and maintained a positive financial result.
For Nigeria, the development is significant because the effectiveness of the central bank has broad implications for the economy.
The CBN’s policies influence interest rates, credit conditions, exchange-rate expectations, financial-market confidence and the stability of the banking system. Its decisions affect businesses, investors, households, financial institutions and government.
A more efficient and responsive central bank can potentially strengthen policy implementation, improve regulatory effectiveness and respond more quickly to developments within the domestic and international financial environment.
The workforce restructuring should therefore be understood as part of a much broader institutional transformation.
It represents an effort to modernise the apex bank and align its organisational structure with the demands of a rapidly evolving economy.
The N193 billion reduction in personnel expenses is significant because it provides a measurable indication of progress. Yet its ultimate importance will be determined by how effectively the savings are converted into stronger institutional capacity.
This distinction is essential.
Efficiency should not mean simply spending less. It should mean ensuring that every naira deployed by the institution contributes meaningfully to the achievement of its mandate.
The increase in currency issue expenses and other operating costs reinforces this point. Some expenditures are unavoidable because they support essential functions. The objective is therefore to optimise the allocation of resources rather than pursue indiscriminate reductions.
The 2025 results suggest that the CBN is moving towards this broader understanding of efficiency.
The reduction in personnel expenses creates greater fiscal space for strategic investments, while continued spending on currency management and other critical operations indicates that the institution remains focused on maintaining the infrastructure required to support monetary and financial stability.
The improvement in profitability provides an additional positive indicator.
Taken together, the figures portray an institution undergoing substantial change while maintaining its ability to finance and perform its core responsibilities.
The reform process will nevertheless require sustained discipline. The CBN will need to continue monitoring operating costs, manage employee benefit obligations carefully and ensure that workforce restructuring translates into measurable improvements in institutional performance.
The real test will be whether the savings generated through the programme contribute to faster processes, stronger supervision, improved risk management, more effective monetary policy implementation and greater operational resilience.
If these outcomes are achieved, the 2025 reduction in personnel expenses could emerge as an important milestone in the CBN’s longer-term transformation.
The significance of the development extends beyond the institution’s balance sheet. Nigeria requires strong public institutions capable of operating efficiently, adapting to economic developments and managing resources responsibly.
The CBN’s ongoing reforms demonstrate how organisational restructuring can be combined with investment in institutional capacity.
The more than N193 billion reduction in personnel expenses represents a substantial adjustment to the apex bank’s recurring cost structure. More importantly, it creates an opportunity to redirect resources towards strategic priorities at a time when Nigeria’s financial system is becoming increasingly complex.
As digital finance expands and financial risks become more sophisticated, the CBN will require stronger technology, specialised expertise, better data capabilities and more resilient operational systems.
A leaner and more focused institution can be better positioned to meet these demands.
The 2025 financial statements consequently provide a positive indication of the direction of the CBN’s transformation. Personnel costs have declined substantially, profitability has improved and the institution continues to invest in critical areas required to fulfil its statutory responsibilities.
The increase in employee benefit liabilities and other operating expenses shows that the transformation carries transitional and operational costs. However, these costs need to be assessed against the longer-term objective of establishing a more sustainable and effective institution.
For Cardoso and his management team, the next phase will be to consolidate the gains already achieved and ensure that efficiency becomes embedded in the CBN’s institutional culture.
The ultimate objective is not merely a lower personnel bill. It is a central bank that is more agile, better governed, financially disciplined and strategically equipped to manage Nigeria’s increasingly complex monetary and financial environment.
Viewed from this perspective, the N193 billion reduction in personnel expenses represents much more than a cost-saving figure. It is a measurable indicator of institutional change and a reflection of the CBN’s effort to build a more efficient and resilient organisation.
The 2025 accounts suggest that the transformation is gaining momentum. With sustained attention to governance, prudent resource allocation, professional capacity and operational effectiveness, the reforms could further strengthen the apex bank’s ability to deliver on its mandate and reinforce confidence in its role at the centre of Nigeria’s financial system.
