A further probe into the audited financials of the Central Bank of Nigeria (CBN) for the year ended December 31, 2017, shows that it earned a total of N121.14bn from the management of the nation’s external reserves in 2016 and 2017.
Between January and December 2017, the apex bank earned N77.74bn or US$0.25bn from the reserves management efforts of JP Morgan, representing a 44.2% rise above the N43.4bn (US$220.88m) ecorded in the corresponding period of 2016.
While the 2017 figure was N36.18bn, or 87.1% over the budget estimate for the period; that of 2016 surpassed the N34.85bn budget expectation for the year.
The increase in the 2017 figure, the CBN said, “was due, largely, to reserves accretion. This was in addition to the increase in income on current and repo account balances, as a result of sweeping arrangement between the JP Morgan and the Federal Reserve Bank.” The CBN noted that as part of its External Asset Management programme said it has sustained the Master Securities Lending Agreement signed in 2014 with the Global
Custodian, J. P. Morgan, to participate in its securities lending programme.
The custodian was therefore permitted to lend the securities purchased by the Fund Managers to eligible borrowers in accordance with agreed guidelines.
Consequently, it noted that at the end of December 2017, Net Asset Value of the entire fixed income portfolio under management by the external asset managers, stood at US$6.89bn.
Also, it added that the portfolio yielded return on investment of US$479m in the 10 years since inception in 2007 to December 2017, just as it recorded an aggregate performance of 39 basis points, above the composite benchmark.