Custodian Investment Plc faced a substantial increase in regulatory penalties, paying a total of N419.13 million in 2025. This marks a sharp rise from the N19.17 million recorded in 2024, according to the company's audited financial statements filed on the Nigerian Exchange (NGX).

The Central Bank of Nigeria (CBN) was the primary source of these penalties, imposing fines amounting to approximately N391 million. The largest single penalty, N240 million, was for breaching the intraday liquidity facility (ILF) on a CBN bond trade. The ILF is a critical short-term funding mechanism for financial institutions to settle time-sensitive transactions within the same business day.

Further penalties levied by the CBN included N76 million for non-compliance with Customer Due Diligence (CDD) regulations. An additional N75 million was imposed for failing to implement internal audit corrections concerning a misclassified high-risk customer.

The company also incurred several smaller fines for various infractions. These included N5 million for failure to pay environmental fees to NESREA, N1.5 million for a delayed SEC filing related to an infrastructure fund, and N10 million for late submission of FRCN returns. Additionally, N9.93 million was attributed to AML/CFT risk-based supervision issues, and N1.7 million was for the delayed filing of financial statements to the NGX.

Importantly, Custodian Investment Plc disclosed that the N240 million penalty linked to the ILF, which stemmed from transactions conducted on behalf of Sterling Bank Plc, has been fully recovered from the counterparty. This recovery significantly mitigates the actual financial impact of the fines on the company.

Despite these regulatory penalties, Custodian Investment Plc demonstrated strong financial performance, with its profit before tax reaching N77.35 billion for the period.