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    Custodian Hit with N419m Fines as Regulatory Breaches Surge

    Custodian Investment Plc shelled out N419.13 million in penalties to the Central Bank of Nigeria (CBN) and other regulators for breaches in the 2025 financial year, up sharply from N19.17 million in 2024.

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

    CBN accounted for N391 million of the penalties, including a hefty N240 million fine for violating intraday liquidity facility (ILF) rules on a CBN bond trade.

    The ILF allows banks to settle same-day transactions with repayment due by close of business.

    Custodian also paid N76 million for Customer Due Diligence lapses and N75 million for ignoring internal audit fixes on a misclassified high-risk customer.

    Smaller fines piled on, but the firm recovered the full N240 million ILF penalty from Sterling Bank Plc, the counterparty.

    Despite the hit, profit before tax climbed to N77.35 billion, with fines under 1% of that figure.

    After recovery, the net cost shrank below 1% of management expenses and profit.

    Net income hit N91.32 billion, easily covering N21.1 billion in expenses including fines, fueled by surging investment income, fair value gains, interest growth and an insurance unit turnaround from loss to profit.

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    Frank
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    Franklin Ugo Ndibe is a seasoned Nigerian journalist and media professional renowned for his incisive reporting and editorial leadership in the information and communications technology (ICT) sector.

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