Regulatory bodies, including the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), have sanctioned 10 Nigerian banks for violating foreign exchange guidelines and other regulatory infractions. The penalties, amounting to N1.502 billion, were imposed during the first half of 2024, highlighting ongoing challenges in maintaining compliance within the financial sector.
The banks affected by these fines include First City Monument Bank (FCMB), Access Bank, Stanbic IBTC, Zenith Bank, United Bank of Africa (UBA), Guaranty Trust Bank (GTB), Sterling Bank, Fidelity Bank, First Bank, and VFD Bank. The fines were issued for a variety of offences, ranging from forex guideline breaches to compliance and customer service infractions.
According to financial statements submitted to the Nigerian Exchange, Zenith Bank received the highest penalty, paying N427 million. Access Bank followed with a fine of N300 million, while UBA paid N279 million. Other banks that faced penalties include Stanbic IBTC, which paid N229 million, GTB with N188 million, and smaller amounts from Fidelity Bank, FCMB, Sterling Bank, First Bank, and VFD Bank.
The infractions varied in nature. For example, Access Bank was fined for mismanaging funds from a government agency, while UBA was penalized for failing to submit a 2021 Cyber Security Self-Assessment Report and for violating foreign exchange regulations. GTB faced fines in Ghana and Rwanda for similar forex violations, resulting in additional payments equivalent to N1.297 billion in Ghana and N311,000 in Rwanda.
Concerns have been raised about transparency in the financial operations of some tier-one banks, with civil society groups calling for forensic audits. In response, the CBN reiterated its commitment to maintaining stability within the financial system, noting that regular stress tests are conducted to identify risks before they impact the sector.
CBN Governor Olayemi Cardoso emphasized the importance of these measures in protecting depositors and ensuring the health of the banking industry. Stress tests, he noted, help to identify emerging risks and ensure that banks remain resilient amid regulatory and market challenges.
This round of fines reflects the regulatory agencies’ efforts to enforce compliance and maintain the integrity of Nigeria’s banking system, even as financial institutions grapple with evolving regulatory demands.
