CBN fines Custodian Investment N419m over rule breaches

Custodian Investment Plc paid N419.13 million in penalties to the Central Bank of Nigeria (CBN) and other regulators during the 2025 financial year, a sharp increase from N19.17 million recorded in 2024.

The company disclosed this in its audited financial statements filed with the Nigerian Exchange (NGX).

The CBN accounted for N391 million of the total penalties, including a significant N240 million fine for breaching intraday liquidity facility (ILF) rules linked to a CBN bond transaction.

The ILF enables banks to settle same-day transactions, with repayment expected before the close of business.

Custodian also incurred N76 million in penalties for lapses in Customer Due Diligence and N75 million for failing to implement internal audit recommendations regarding a misclassified high-risk customer.

Additional smaller fines contributed to the total, although the company successfully recovered the full N240 million ILF penalty from Sterling Bank Plc, which acted as the counterparty.

Despite the penalties, profit before tax rose to N77.35 billion, with fines accounting for less than 1% of that figure.

Following the recovery, the net cost of the penalties fell below 1% of both management expenses and profit.

Net income reached N91.32 billion, comfortably covering N21.1 billion in expenses, including fines. This performance was driven by strong investment income, fair value gains, increased interest earnings, and a turnaround in the insurance segment from a loss position to profitability.