Nigerian banks fined 50 times more for customer issues, other violations

Nigerian commercial banks faced a surge in regulatory penalties in 2024, suggesting intensified monitoring and stricter enforcement by the Central Bank of Nigeria (CBN).

A Pluboard analysis of annual reports from eight publicly listed banks shows a staggering increase in fines—from a combined ₦379 million in 2023 to ₦18.8 billion in 2024.

The sharpest rise came from Zenith Bank, which paid ₦15.4 billion in fines last year, compared to just ₦21 million in 2023—a jump of more than 73,000%.

The bank cited violations including anti-money laundering (AML) failures, foreign exchange infractions, and other regulatory breaches.

Access Bank Group also saw its penalties soar from ₦38 million in 2023 to ₦1.21 billion in 2024.

Guaranty Trust Bank (GTB) followed closely, with its penalty rising to ₦1.6 billion, up from ₦73 million a year earlier. GTB’s infractions included issues flagged during a mystery shopping exercise by the CBN.

Other banks recorded similar upward trends:

• UBA: ₦400 million in 2024 (₦110 million in 2023)
• Sterling Bank: ₦61 million (up from ₦21 million)
• Fidelity Bank: ₦71.3 million (₦42.9 million in 2023)
• First Bank: ₦42 million (₦32 million in 2023), largely for unauthorized foreign exchange dealings and appointing a senior staff without CBN approval
• Wema Bank was the only bank to record a decline, with fines dropping to ₦2 million from ₦61.4 million in 2023.

The CBN typically fines banks for violations such as foreign exchange malpractices, AML/CTF compliance failures, breach of cash reserve requirements, and unresolved customer complaints. Unauthorized transactions and staffing decisions without regulatory approval have also drawn sanctions. First Holdco was sanctioned for appointing a senior staff without approval.

Speaking at Zenith Bank’s 2025 Annual General Meeting, Group Managing Director Adaora Umeoji acknowledged the spike in penalties. “The CBN has increased its monitoring and supervision of banks. We are implementing measures to ensure compliance and avoid future penalties,” she said, assuring shareholders of a stronger internal control framework.

Rising fines are interpreted by analysts as a signal of the CBN’s renewed focus on curbing financial misconduct and enforcing regulatory discipline across the banking sector.