THE Central Bank of Nigeria has penalised Fidelity Bank for various contraventions ranging from violations of rules guiding report filings to cybersecurity assessments’ breaches.
According to the second quarter (Q2) financial statement of Fidelity Bank seen by Economy Post, the bank was fined for N309.9 million over a six-month period to June 30 2025 for 6 different violations of the Bank and Other Financial Institutions Act, 2020.
The bank was fined N140.5 million over issues relating to cybersecurity, and another N150 million for breaching cash/social payment order. The CBN also penalised the bank the sum of N12 million for infractions relating to report filing and another N2 million for risk-based supervision breaches.
The CBN likewise fined Fidelity Bank N2.675 million for another issue relating to report filing violation, while the Securities and Exchange Commission (SEC) took N2.725 million from the tier-2 for issues relating to report filing infractions.
Fidelity Bank had been fined N71.284 million for various infractions in the corresponding period of 2024. A spokesman of the bank did not comment on the matter.
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The CBN had penalised 9 Deposit Money Banks (DMBs) earlier in 2025 for failing to make naira notes available through automated teller machines (ATMs) during the 2024 Christmas season. Each bank was penalised N150 million for non-compliance, in line with the CBN’s cash distribution guidelines after spot checks on their branches.
The CBN often penalises or sanctions banks for violations of rules guiding lending, capital adequacy, foreign exchange operations, financial reporting, and for failing to protect customers. The apex bank sanctions banking taking excessive risks or engage in unsafe practices that can threaten the financial system.
In the same period of 2025, the CBN also 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 represented 78 percent of the total penalty imposed by the apex bank, reflecting the seriousness attached by the apex bank to intervention funds.
Fidelity Bank also had 849 unresolved complaints pending with the bank as of the end of June 2025, with customers claiming N82.488 billion within the period.
Cheap loans to staff
Fidelity Bank also granted loans to its staff at 3.5 percent interest rate while lending credit facilities to manufacturers stood at 36 percent.
According to the Fidelity Bank’s 2024 full-year financial statement, its staff got N14.698 in loans and advances as of December 2024 and they got them at an average interest rate of 3.5 percent.
“Loans to Staff members include mortgage loans and other personal loans. The loans are repayable from various repayment monthly cycles over the tenor and have an average interest rate of 3.5%. Loans granted to staff are performing,” the bank noted.
Nigerian manufacturers struggle to have access to credit for expansion, but banks like Fidelity lends to them at 36 percent but grants credit to its staff at 3.5 percent.
Zenith Bank, on the other hand, charged manufacturers 38.5 percent interest rate on loans but allows its key management personnel to collect credit at 4 percent, Economy Post earlier reported.
According to data obtained from the CBN, First City Monument Bank (FCMB) had the highest lending rate to manufacturers at 45 percent as of February 2025. In fact, the bank raised its interest rate to manufacturers from 30 percent in February 2021 to 45 percent in February 2025, indicating an increase of 15 percentage over the four-year period.
