ZENITH Bank Pays Over N15bn Fines To CBN
ZENITH Bank Plc in 2024 paid N15.428 billion penalties to the Central Bank of Nigeria (CBN) for 10 different violations in the 2024 financial year, including foreign exchange, cybersecurity and anti-money laundering infractions.
According to the Tier-1 bank’s 2024 financial statement discovered that the bank paid a N14.647 billion for infractions from the CBN foreign exchange examination, including a N103.250 million due to what the bank called “anti-money laundering reviews.
Zenith Bank also paid a N250 million as penalty for extant regulation violation as well as N322 million for checks on customers onboarding documentation.
The Tier-1 lender likewise paid a N4million as penalty for cyber security breaches and another N4million as penalty for violations related to risk assessment examination.
The bank further paid a N20 million for non-compliance with CBN directives as well as N61million as penalty for anti-money laundering findings. It also paid a N14 million for non-compliance with CBN’s directive on reconciliation of customer charges. The lender equally paid a N2 million in penalties for the late resolution of customer’s complaints.
High level of litigations
Similarly, the bank also faces a number of court cases, with litigants claiming N1.30 trillion by the end of 2023 as against N1 trillion in the corresponding period of 2023.
The Group is presently involved in several litigation suits in the ordinary course of business. The total amount claimed in the cases against the Group is estimated at N1.30 trillion (31 December 2023: N1 trillion).
“The actions are being contested and the Directors are of the opinion that none of the aforementioned cases is likely to have a material adverse effect on the Group and are not aware of any other pending or threatened claims and litigations.”
Zenith Bank has continued to lend to its key management personnel at 4 percent interest rate despite the monetary policy rate – which is the benchmark interest rate- staying at 27.5 percent. Its loans to the managers stood at N3.850 billion at the beginning of 2024 but ended the year at N578 million. The bank earned an interest of N23 million from the loans.
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria retained the country’s benchmark interest rate at 27.50 percent at the apex bank’s 299th meeting in Abuja in February 2025. “The Committee was unanimous in its decision to hold all parameters and thus decided as follows: 1. Retain the MPR at 27.50 per cent. 2. Retain the asymmetric corridor around the MPR at +500/-100 basis points,” CBN Governor, Mr Yemi Cardoso, said after the meeting.
Zenith Bank Plc had lent N3.517 billion to its management staff at four percent interest rate during the second-quarter 2023 financial statement. Zenith Bank granted most of the loans to its management staff to acquire land and build houses, while some were given to them as personal loans.