The Central Bank of Nigeria (CBN) recorded a sharp increase in interest income in 2025, with earnings from loans, Federal Government securities and other interest-bearing investments rising by nearly 30 per cent amid a high interest rate environment.
According to the apex bank’s 2025 Annual Report and Financial Statements, interest and similar income—which represents earnings generated from loans, government securities and other interest-bearing financial assets—rose to N6.500 trillion in 2025 from N5.006 trillion in 2024. This represents an increase of N1.494 trillion, or 29.9 per cent.
A breakdown of the figures showed that income from other foreign securities accounted for the largest share of interest earnings, increasing to N4.266 trillion in 2025 from N2.445 trillion recorded in 2024.
The CBN also earned N2.188 trillion from Federal Government securities, compared with N2.436 trillion in the previous year, while income from loans and receivables declined to N493.78 billion from N519.43 billion.
Interest income from the Asset Management Corporation of Nigeria (AMCON) also moderated to N222.38 billion from N253.35 billion a year earlier.
The report further showed that the bank generated N2.795 billion from foreign securities classified as Fair Value Through Profit or Loss (FVTPL), a category of financial assets measured at their current market value, with gains or losses recognised in the income statement.
Despite the strong growth in earnings, the cost of implementing monetary policy also increased significantly during the year. The bank’s interest and similar expenses rose to N6.312 trillion in 2025 from N4.990 trillion in 2024.
The increase was driven mainly by interest paid on CBN instruments issued, which climbed to N5.276 trillion from N4.482 trillion. Interest expenses on securities lending also rose to N708.73 billion from N378.56 billion, while interest paid on deposits increased sharply to N332.73 billion from N36.58 billion.
The figures indicate that although the CBN benefited from improved returns on its investment portfolio during the year, the elevated interest rate environment also raised the cost of its liquidity management operations.
This reflects the impact of the bank’s tight monetary policy stance, which relied on higher-yielding instruments to mop up excess liquidity and contain inflationary pressures throughout 2025.
