AGS NEWS – In 2023, nine financial institutions paid fines totaling N678 million for regulatory violations, according to an analysis for their annual reports.

This amount represents an 89.25% decrease from the N6.31 billion in penalties paid in 2022, indicating improved compliance.

The financial institutions analyzed include FBN Holdings, Access Holdings, Guaranty Trust Holding Company, Zenith Bank Plc, United Bank for Africa Plc, Fidelity Bank, Wema Bank, Stanbic IBTC Holdings, and FCMB Group.

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These penalties were imposed by regulators such as the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the National Insurance Commission (NAICOM), NGX Regulation Limited, FMDQ, and the National Pension Commission (PenCom).

Zenith Bank, which had no penalties in 2022, paid N21 million in fines in 2023. FBN Holdings paid N17.26 million in fines, down from N26 million in the previous year.

Access Holdings significantly reduced its penalties from N604 million in 2022 to N81.60 million in 2023.

GTCO’s fines dropped to N73.98 million from N4.21 billion in 2022, reflecting penalties across various countries of operation. United Bank for Africa reduced its fines from N1.14 billion to N110 million in 2023.

Fidelity Bank’s penalties decreased from N100.71 million in 2022 to N42.96 million in 2023, while Wema Bank’s fines increased to N61.35 million from N2 million in the previous year.

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Stanbic IBTC Holdings saw a 22.01% decline in fines, paying N124 million compared to N159 million in 2022. However, FCMB Group’s penalties rose to N145.10 million from N70.30 million in 2022.

Analysts attributed the overall reduction in fines to improved corporate governance, risk management practices, and stricter adherence to regulatory guidelines.

They noted that ongoing emphasis on ethical practices and professionalism within the banking sector has contributed to this trend.

Despite the progress, some experts called for a review of the regulatory frameworks, as the total fines still represent a significant loss for shareholders.