According to its audited financial statements filed on the Nigerian Exchange, the company paid a total of N419.13 million in fines to the Central Bank of Nigeria and other regulators—marking a sharp rise from N19.17 million recorded in 2024.
A breakdown of the disclosures shows that the bulk of the penalties—approximately N391 million—originated from the Central Bank of Nigeria. The most substantial sanction was a N240 million fine tied to a breach of the intraday liquidity facility (ILF) on a bond transaction. The ILF serves as a short-term funding mechanism that allows financial institutions to complete time-sensitive transactions within the same day.
Further regulatory breaches included a N76 million penalty for lapses in Customer Due Diligence compliance and N75 million for failing to implement internal audit corrections related to a misclassified high-risk customer.
Additional infractions, though smaller in value, contributed to the overall penalty burden. These included N5 million for non-payment of environmental fees to the National Environmental Standards and Regulations Enforcement Agency (NESREA), N1.5 million for delayed filing with the Securities and Exchange Commission Nigeria, and N10 million for late submission of returns to the Financial Reporting Council of Nigeria.
Other penalties comprised N9.93 million linked to AML/CFT risk-based supervision issues and N1.7 million for delayed filing of financial statements with the Nigerian Exchange.
However, the company clarified that the N240 million ILF-related fine—incurred on transactions conducted on behalf of Sterling Bank Plc—has been fully recovered from the counterparty, significantly reducing the net financial impact.
Despite the elevated compliance costs, Custodian Investment delivered strong financial results. Profit before tax rose to N77.35 billion, while net income stood at N91.32 billion for the year. The reported penalties accounted for less than 1% of pre-tax profit. When adjusted for the recovered ILF-related fine, the effective cost impact falls even further, remaining marginal relative to both management expenses and earnings.
The company’s performance was supported by growth in investment income, fair value gains on financial assets, and increased interest income. Additionally, its insurance segment recorded a turnaround, moving from a loss position in the prior year to profitability in 2025.