The Central Bank of Nigeria (CBN) imposed fines worth ₦16.45 billion on Zenith Bank and several other lenders in 2024 for multiple foreign exchange (FX) and compliance violations.
Zenith Bank carried the heaviest penalty, paying ₦15.43 billion, including ₦14.65 billion for FX-related infractions uncovered during regulatory examinations.
Other banks also faced significant fines:
- Stanbic IBTC: ₦579 million
- Fidelity Bank: ₦71.28 million
- Wema Bank: ₦2 million
- GTCO: ₦383 million
Stanbic IBTC’s Penalties
Stanbic IBTC’s fines covered a range of issues, including:
- ₦104m for failing to file suspicious transaction reports and inadequate customer due diligence.
- ₦176m for not complying with a directive to repay three customers.
- ₦44m linked to infractions from earlier CBN risk assessments.
- ₦162m for weak due diligence on high-risk customers and gaps in its politically exposed persons (PEP) database.
Fidelity and Wema Bank
Fidelity Bank was fined ₦71.28 million, including ₦24 million for anti-money laundering and terrorism financing lapses.
Wema Bank faced a much smaller fine of ₦2 million for breaching net open position limits.
GTCO’s Case
Guaranty Trust Holding Company (GTCO) paid ₦383 million in fines, linked to consumer protection violations, non-compliance on reporting, and findings from a 2024 CBN “mystery shopping” exercise.
CBN’s Tougher Stance Under Cardoso
At the start of 2025, CBN Governor Olayemi Cardoso warned banks that violations of the newly introduced Nigeria Foreign Exchange Code would attract “severe sanctions.”
Unveiled in Abuja, the FX Code is designed to restore trust and transparency in Nigeria’s FX market. Built on six principles—Ethics, Governance, Execution, Information Sharing, Risk Management & Compliance, and Confirmation & Settlement—the code aligns with international standards but also addresses Nigeria’s unique challenges.
Cardoso made it clear:
“The era of opaque practices is over. We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets.”
The CBN Act of 2007 and the Banks and Other Financial Institutions Act of 2020 give the regulator legal backing to enforce these rules.
FX Reserves Recover Strongly
Nigeria’s net FX reserves rose to $23.11 billion at the end of 2024, the highest level in more than three years. This marked a sharp rebound from $3.99bn in 2023, $8.19bn in 2022, and $14.59bn in 2021.
The CBN attributed the increase to stronger enforcement and tighter FX market oversight.
Banks Enjoy Windfall From Government Securities
While dealing with fines, Nigeria’s biggest banks made record earnings from treasury bills and government bonds.
In 2024, Zenith Bank, First Bank HoldCo, GTCO, UBA, and Access Bank earned a combined ₦4.43 trillion from treasury assets, up 150% from ₦1.77 trillion in 2023.
Analysts say this reflects both higher yields and increased bank investment in risk-free government securities amid economic uncertainty.
According to Lagos-based analyst Abiola Rasaq:
“The growth in treasury income shows how banks shifted more of their balance sheets into risk-free assets given the elevated yield environment and regulatory capital raises.”
Inflation and Interest Rates
Despite raising rates six times in 2024, the CBN kept its benchmark interest rate steady at 27.5% in early 2025.
The move followed signs of stability in the FX market and a significant drop in inflation, which fell to 24.48% in January 2025, down from 34.8% in December 2024, according to the National Bureau of Statistics.
