THE Central Bank of Nigeria (CBN) has fined Zenith Bank Plc, one of the nation’s top lenders, the sum of N1.81 billion for irregular asset acquisition, late reporting of cybersecurity issues, poor cash management, irregularity in cash disbursement, among other breaches.
The tier-1 bank paid the penalties to the CBN for breaching six regulations in the first six months (H1) of 2025, according to the H1 2025 financial statement of the bank seen by Economy Post.
The biggest penalty paid by Zenith Bank was N1.412 billion for “non-compliance to CBN policy on
intervention facility.” The fine represents 78 percent of the total penalty imposed by the apex bank, reflecting the seriousness attached by the apex bank to intervention funds.
Though the specific breach was not mentioned, Economy Post has consistently reported that several Nigerian banks breach intervention funds rules by failing to disburse them conformably. Economy Post had reported that Zenith Bank lent only 7 percent of the CBN’s N311.19 billion intervention funds in its tills over a period of six months in 2024. Zenith Bank failed to lend much of the intervention funds in its tills despite the scramble for cheap funds by businesses, particularly manufacturers and small businesses.
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Intervention funds are meant to support certain sectors of the economy with single-digit finance in order to enable them to compete effectively with peers. Interest rates for such funds range from 5 to 9 percent.
Zenith Bank’s other penalties
Zenith Bank also paid N300 million as penalty “as a result of irregularity in cash disbursement.” The bank was also fined N74 million as “penalty relating to late reporting of cybersecurity issues” and penalised N20 million for “irregular asset acquisition.” Furthermore, the bank was fined N97 million as “penalty as a result of cash management,” and penalised N5.0161 million for “branch structure.”
A Zenith Bank spokesperson did not respond to questions regarding why the bank contravened the regulations.
Fines and penalties across banks
Zenith Bank had paid a total of N14.647 billion for various foreign exchange (FX) infractions in 2024. The tier-one bank also paid another N780.25 million for 9 other infractions, Economy Post reported.
Zenith Bank’s 2024 full-year financial statement showed that the bank paid N14.647 to the CBN for “infractions from the foreign exchange (FX) examination.” It was also fined N2 million for late resolution of customers’ complaints.
Guaranty Trust Bank (GTB) was fined between April and June 2024 in Ghana and Rwanda for contravening FX guidelines , Economy Post had equally reported.
GTB was fined an equivalent of N1.297 billion in Ghana in the second quarter (Q2) of 2024 for “breaching foreign exchange market operational guidelines,” according to the bank’s Q2 2024 financial statement analysed by Economy Post.
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In Rwanda, GTB was fined an equivalent of N311,000 in Q2 2024 for “non compliance with the exchange rate applied by commercial banks.” It was also punished for another contravention which was not related to FX contraventions.
Wema Bank found itself on the wrong side of 7 Nigerian laws in 2023, paying penalties totalling N61.350 million in one year, Economy Post had likewise reported.
This was revealed in the bank’s full-year 2023 financial statement, which showed that the lender contravened a cybersecurity law, a section of the Bank and Other Financial Institutions Act (BOFIA) 2020, the CBN circulars on Know Your Customers, among others.
At the 2024 Bankers’ Night organised by the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, CBN Governor, Mr Olayemi Cardoso, said 29 banks were fined N15 billion for violations of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations.
“In addition to these penalties, the banks are required to address the root causes of the lapses, which is crucial for improving regulatory effectiveness. Historically, the industry has struggled with recurring issues, but we are confident that this approach will help change that narrative,” Cardoso stated.
