E-Financial
CBN Chides Banks over Money Laundering
Dr. Sarah Alade, acting governor of the Central Bank of Nigeria (CBN), has linked banks to money laundering and other related crimes and accused them of aiding or abetting the crimes knowingly or unknowingly.
This is even as African financial experts also expressed concern the unwholesome roles of banks globally in the increasing menace of illicit money transfers across regional borders and the negative implications for the global financial system.
Alade levelled the allegations against the banks in her keynote address at the opening ceremony of the Regional Course on Combating Money Laundering and Other Financial Crimes organised by the West African Institute for Financial and Economic Management (WAIFEM) in Abuja.
She specifically noted that “bank facilities are used knowingly and unknowingly to further the act of money laundering and in most cases to retain the proceeds of such crime”.
Charles Mordi, director, Research, of the bank, who represented by the acting governor said that over 80 per cent of the proceeds of money laundering were associated with banks, one way or the other, all over the world.
According to her, the extent of financial crimes in terms of dimension, nature and level of sophistication is becoming worrisome, and therefore called for urgency by countries to build an investigative culture where suspected proceeds of illicit activity become routine part of investigation process to “follow the money” and identify its sources, so that substantial confiscation orders can be obtained, and the launderers prosecuted.
Alade listed money laundering, which is closely related to illicit trafficking in narcotics and human beings, corruption, terrorism, prostitution, illegal mining as well as foreign exchange malpractices, bank and tax fraud, as amongst the most prevalent financial and economic crimes being contended with by countries globally today
She lamented that despite international effort to mitigate the menace of money laundering, including the establishment of the Financial Action Task Force to serve as the principal international standard setting body as well as the Basel Committee on Banking Supervision, among others, the crimes were still prevalent.
While noting that effects of money laundering and related economic and financial crimes cause distortions in the financial markets through misallocation of investment, the CBN boss explained that the unwholesome acts usually have “deleterious macroeconomic consequences such as inexplicable changes in money demand, prudential risks to banks soundness, contamination effects of legal financial transactions and increased volatility of international capital flows and exchange rate due to unanticipated cross-border asset transfers.”
She, therefore, warned that money laundering also had a dampening effect on foreign direct investment , especially when a country’s commercial and financial sector were perceived to be associated with the incidence of organised crimes.
Alade also lamented that a concentration of economic power by organised crime spelled doom and could all too easily infect the political terrain of any nation, adding that this also portended greater risk for the rule of law and burgeoning democracy in the sub-region.
She raised a greater concern on the connection between money launderers and terrorists which she said were borderless and formed part of a larger network operating across agencies and across borders.
The acting governor said that in view of the growing menace of money laundering, law enforcement appeared a needle-in-a-haystack effort but that this should neither deter nor dampen the enthusiasm of law enforcers to combat financial and other economic crimes in all forms.
Earlier, Prof. Akan Ekpo, director-general of WAIFEM, described money laundering as a major threat to financial stability in any economy, particularly to small and fragile economies like the ones in the West African sub-region.
In another development, the CBN helmswoman has restated the need for the retention of the apex bank’s autonomy.
She said allowing the current status of the regulatory financial institution would further strengthen stability in the financial sector, sustain the gains already made towards sustaining the nation’s economy growth.
She spoke at the opening of a national seminar on banking, finance and allied matters for legislators held in Abuja.
Alada noted that the past two decades of financial re-engineering roles of the CBN had translated to improved macro-economic environment, access to credit, financial inclusion, payment and settlement system, employment generation and strengthening of the market mechanisms in the country.
PalmPay, a leading neobank and fintech platform focused on emerging markets, has been recognised in CNBC and Statista’s 2025 Top 300 Fintech Companies in the World list. This marks the second year in a row that PalmPay has earned a place among the world’s most innovative and impactful financial technology firms.
The selection is based on a rigorous evaluation of thousands of companies globally, assessing growth, innovation, market penetration, and impact. This year’s list includes a mix of global leaders – including Revolut, Nubank and Ant Group – alongside rising stars from high-growth markets, underscoring the growing influence of emerging-market fintechs like PalmPay.
PalmPay’s inclusion reflects its continued momentum as one of Africa’s leading fintech platforms. With over 35 million registered users and up to 15 million transactions processed daily, the company offers a comprehensive suite of digital financial services tailored to the needs of underserved communities.
In its main market, Nigeria, PalmPay operates as a full-service neobank, offering consumer financial services such as transfers, bill payments, credit, savings, and insurance – all accessible through its user-friendly app and supported by a nationwide network of over 1 million agents and merchant partners. The company also provides POS and API-driven B2B solutions tailored to the needs of merchants and enterprise clients.
“To be recognised as one of the world’s top fintech companies by CNBC and Statista is a powerful affirmation of our mission to build a more inclusive financial system,” said Sofia Zab, Founding Chief Marketing Officer at PalmPay.
“Through cutting-edge technology, deep local distribution, and a customer-first mindset, we’ve built Nigeria’s leading neobank. As we scale PalmPay to more emerging markets, including Tanzania and Bangladesh, our focus remains on closing financial access gaps for everyday consumers and businesses, while expanding the partner ecosystem that fuels our reach and impact.”
As part of its broader expansion strategy, PalmPay recently launched in Tanzania and Bangladesh through a smartphone device financing model that serves as an entry point to digital financial services.
“PalmPay is building a neobanking platform tailored to the realities of emerging markets,” said Jiapei Yan, Group Chief Commercial Officer at PalmPay. “We are creating the infrastructure for a connected digital economy – where people and businesses can thrive through reliable, inclusive financial tools.
This recognition from CNBC and Statista affirms our progress and also the scale of the opportunity ahead. As we expand across more emerging markets, we are committed to creating lasting value for our users, partners, and the communities we serve.”
PalmPay’s inclusion follows another major recognition earlier this year: the company ranked #2 overall and #1 in the financial services sector on the Financial Times – Africa’s Fastest-Growing Companies 2025 list. The ranking, based on revenue growth between 2020 and 2023, highlighted PalmPay’s rapid scale and market traction across Africa.
PalmPay currently operates in Nigeria, Ghana, Tanzania, and Bangladesh, and is expanding its presence across Africa and Asia through device financing, digital banking, and B2B payment services. Backed by a robust neobanking platform and a partnership-led approach, the company is committed to shaping the next chapter of inclusive financial growth.
Fidelity Bank Plc has reaffirmed its commitment to quality education and youth empowerment with the renovation of a classroom block and donation of textbooks to Aso Pada Government Secondary School in Karu LGA, Nasarawa State.
L-R: The Team Lead, CSR, Fidelity Bank Plc, Victoria Abuka; Vice Principal, Government Secondary School, Aso Pada, Maraba, Mr. Abdullahi Idris; Project Co-ordinator, Elite Bankers 2025 Inductee Class, Fidelity Bank Plc, Onyinyechi Ihesiaba; Vice Principal -Academics, Government Secondary School, Aso Pada, Maraba, Mr. Ela Isa; during the commissioning of a renovated block of classrooms and the distribution of Back-to-School Materials at Government Secondary School Aso Pada, Maraba, Nassarawa State recently.
The project was executed through the Fidelity Helping Hands Program (FHHP), a corporate social responsibility initiative that enables staff to identify community needs, raise funds, and receive matched support from the bank.
Speaking at the handover ceremony, Dr. Meksley Nwagboh, Divisional Head, Brand and Communications, said the school was chosen due to its impact on the local community and its lack of renovation in over 15 years.
Vice Principal Abdullahi Idris praised the bank’s gesture, calling it “an investment in the future of our nation,” and expressed hope for a lasting partnership.
The initiative follows Fidelity Bank’s recent donation of 1,000 solar-powered schoolbags to pupils across Ogun State, aimed at improving study conditions in areas with limited electricity.
Fidelity Bank serves over 9.1 million customers and has received multiple awards for innovation and SME support, including the 2024 Excellence in Digital Transformation Award and Best Bank for SMEs in Nigeria by Euromoney.
Eight leading Nigerian banks collectively set aside N156 billion as impairment charges on their credit and financial assets, marking a significant financial impact amidst a challenging economic environment, in the opening quarter of 2025.
Known commonly as loan losses or credit impairments, these charges highlight the banks’ defensive measures against risks arising from inflation, naira depreciation, and tightened liquidity affecting consumers and businesses alike.
The level of impairment varied considerably across institutions, reflecting divergent risk appetites and credit management practices.
Zenith Bank led with the highest provision of N49.38 billion, an 11.8 percent reduction from the previous year’s N55.97 billion.
This decline may suggest enhanced asset quality or more rigorous loan recovery tactics.
Broken down, loans and advances contributed N35.95 billion to impairments, while investment securities and treasury bills added N7.1 billion and N2.16 billion respectively.
Despite heavy provisioning, Zenith recorded a notable 20.7 percent increase in post-tax profit, soaring from N258.34 billion to N311.83 billion.
Similar trends emerged at First HoldCo, which posted N37.25 billion in impairment (down 11.2 percent), driven mainly by loans and advances provisions of N41.23 billion.
Offsetting this were write-offs and reversals that mitigated losses.
First HoldCo’s profit, however, fell to N171.10 billion from N208.11 billion.
Access Holdings and Guaranty Trust Holding Company also demonstrated reduced impairment charges, indicating stronger credit monitoring.
Access’s net provision dropped 4.5 percent to N21.77 billion, while Guaranty Trust’s impairment stabilized near last year’s N13.42 billion figure.
Yet, Guaranty Trust’s profit plunged 43.6 percent to N258.03 billion, a striking contrast to other banks’ profit growth.
On the other hand, United Bank for Africa (UBA) faced a staggering 332.2 percent surge in impairment, from N3.28 billion to N14.18 billion—pointing to amplified credit risks possibly driven by external economic pressures.
Nonetheless, UBA recorded a 33.1 percent profit uptick to N189.84 billion.
FCMB’s impairment charge fell notably by nearly 60 percent to N9.52 billion, aided by significant recoveries of previously written-off loans, boosting its profit to N32.23 billion.
Meanwhile, Fidelity Bank and Wema Bank posted sharp rises in impairment—285.8 percent and 64.7 percent increases respectively—reflecting heightened write-downs that underscore growing risk exposure amidst portfolio expansions.
Overall, while the cumulative impairment charge diminished by 5.2 percent compared to Q1 2024, individual bank results were mixed, embodying the varied strategies and external pressures in Nigeria’s banking sector.
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