June 15, (THEWILL) — Wema Bank Plc has demonstrated a persistent pattern of regulatory violations over the past five years, placing it among organisations that operate within a culture of subtle corporate deviation.
An examination of the bank’s financial statements over the five-year period from 2025 to 2021 indicated that the Tier-2 lender incurred several annual penalties due to various regulatory violations, which adversely affected the institution’s profitability, regardless of their “negligible” sums.
In the bank’s most recent report for 2025, the trend of penalties showed in one contravention that had recurred over the years. Wema Bank violated the Central Bank of Nigeria (CBN) Risk-Based Cybersecurity Framework and Guideline which earned it a N32 million fine.
The Risk-Based Cybersecurity Framework outlines minimum security requirements for financial institutions to protect against evolving cyber threats. It ensures institutions stay resilient, maintain customer trust, and combat cybercrime.
Wema Bank paid penalties to the tune of N2 million during 2024 for breaching the Central Bank of Nigeria (CBN) Net Open Position policy. A Net Open Position (NOP) breach in Nigerian banking occurs when a bank exceeds the CBN limits on foreign currency exposure. The CBN requires banks to keep their overall foreign currency assets and liabilities within 20 percent short or 0 percent long of their shareholders’ funds.
The bank recorded the highest number of contraventions, within the review period, in 2023 when it witnessed 7 cases during the year. These include a Cybersecurity Framework contravention for which it was sanctioned with a N2 million fine.
A penalty of N17.45 million was also imposed on the bank for the contravention of the CBN circulars on Know-Your-Customer (KYC). The CBN introduced the KYC regulations to combat financial crimes, such as money laundering and terrorism financing, and to ensure the safety and traceability of transactions within the country’s financial system.
In the same year the bank was found blameworthy for the contravention of Section 19(3A) of Banks and Other Financial Institutions Act (BOFIA), 2020, which earned it a penalty of N20 million. This section of the Nigeria’s primary banking legislation deals with the CBN regulatory control over major share transfer agreements in the banking sector.
Further findings showed that Wema Bank paid a penalty of N10 million for late rendition of final returns, and N8 million for Risk-Based Supervision (RBS) breaches. RBS is the regulatory and supervisory framework the CBN uses to monitor financial institutions shifting away from the traditional one-size-fits-all audits towards targeted approach. The apex banking regulator also penalised the bank with N2 million for regulatory breach on CBN clearance.
Additionally, a late filing of 2022 Audited Financial Statements (AFS) with the Nigerian Exchange (NGX) earned the bank a N1.9 million penalty during 2023.
In 2022, the bank paid N2 million penalties for contravening the consumer protection order – a policy introduced by the CBN to protect the customers’ assets and ensure the integrity of the financial services sector.
Digging further, a total of N124 million penalties was imposed on Wema Bank in 2021 comprising N4 million for employing 2 staff without clearance. It also paid N10 million for contravening extant FX regulation on betting, and another N10 million for “Spot Check on employment without prior approval”. For contravening CBN circular on cryptocurrency, Wema Bank was penalised N100 million.
Certain industry stakeholders have voiced their concerns regarding the practice of banks making annual penalty payments a habit, which fosters the misleading notion that these fines are too trivial to warrant serious attention.
“Regardless of how ‘insignificant’ it may appear to some, these discoveries amount to millions, representing a substantial sum that is wasted on a reservoir of preventable penalties, which significantly affect profitability and shareholder dividends,” stated Mike Aina, a financial analyst.
Aina questioned why experience is not valued in the operations of the banks. “If you have performed a specific task annually, and you recognise that it is essential for completing a process, or that it creates an obstacle in the execution of a process, you should be mindful to act appropriately,” he contended.
Mrs. Bisi Bakare, the National Co-ordinator of the Pragmatic Shareholders Association of Nigeria, in an earlier interview, urged the banks to enhance their professionalism in operations, stating that “the funds allocated for penalties represent a drain on the banks’ resources irrespective of how small the amount might be.”
Bakare suggested that individuals and their supervisors who contributed to the contraventions should be sanctioned by passing the penalties to them to pay because “they are expected to show professionalism in what they do and bear in mind that what is being spent on these contraventions are shareholders’ assets.
Highlights of Financial Performance – 2025
Wema Bank delivered a robust financial performance for the year ended 31 December 2025, demonstrating significant growth across key metrics.
Gross Earnings: Grew by 52.79% to N660.59 billion, up from N432.34 billion in 2024.
Profit Before Tax (PBT): Increased by 116.42% to N221.85 billion from N102.51 billion in the previous year.
Profit After Tax (PAT): Rose by 125.36% to N194.46 billion, compared to N86.29 billion in 2024.
Total Assets: Expanded by 41.48% to N5.07 trillion.
Total Deposits: Grew by 30.34% to N3.29 trillion, reflecting sustained growth in the retail deposit drive.
Earnings Per Share (EPS): Closed at 712.80 kobo.
The 2025 financial year was a significant period for Wema Bank, defined by the successful completion of a major capital raise and continued execution of its “Top Tier in Three (TTT)” transformation strategy.
The bank reaffirmed its commitment to building a future-ready institution, delivering substantial value to shareholders, customers, and the Nigerian economy.
“Our digital banking franchise, ALAT, remained a central driver of growth, deepening customer engagement and reinforcing our leadership in Nigeria’s digital banking landscape. We advanced our corporate and commercial banking footprint, enhanced operational efficiency, and strengthened governance structures, positioning the bank for accelerated growth and deeper market penetration in the years ahead,” the bank stated in its 2025 annual report.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
