UBA Discloses ₦141.65 Million CBN Penalties in Governance Report

United Bank for Africa Plc (UBA) has disclosed that it incurred regulatory penalties totaling ₦141.65 million from the Central Bank of Nigeria during the 2024 financial year, a move that underscores the bank’s evolving commitment to transparency and governance discipline.

The figure was revealed in UBA’s annual Compliance Report with the Nigerian Code of Corporate Governance (NCCG 2018), under Principle 28: Disclosures. While the report does not elaborate on the nature of the infractions, the decision to publish the total cost of penalties stands out in an industry where such disclosures are often omitted or downplayed.

UBA’s openness on regulatory sanctions coincides with a broader framework of governance reforms, including quarterly risk assessments, internal audit independence, and external board evaluations. The report confirms that both internal and external audit findings are tracked closely by the Board Audit, Governance, Nomination & Remuneration Committee (BAGNRC), with follow-up reports submitted to the full board.

Corporate Governance Anchored by Gender Equity and Strategic Oversight

Beyond the penalty disclosure, UBA continues to set benchmarks in governance standards. The 2024 report highlights that 46.67% of board seats are held by women, a figure unmatched in Nigeria’s banking sector. Eight of 17 directors are female, with roles spanning risk, sustainability, and strategy.

The bank also restructured its board committees in 2024, bringing in new directors while ensuring that all committee chairs are either Non-Executive or Independent Non-Executive Directors (INEDs). Each committee operates under a Board-approved charter and reports quarterly to the full board.

External Consultants and Technology Governance Strengthen Compliance Culture

UBA has engaged third-party consultants, including Deloitte & Touché and PwC, to guide governance practices, cybersecurity, and internal audit strategy. The bank’s IT Data Governance Framework, last reviewed in 2022, is reviewed quarterly by the Risk Committee, reflecting its increasing focus on digital resilience and regulatory alignment.

Balancing Disclosure with Accountability

While the Central Bank penalty figure may raise eyebrows, UBA’s decision to include it prominently in its compliance report may reflect a strategic shift toward full transparency. This positioning is particularly relevant as Nigerian banks face increasing pressure from shareholders and regulators to align with global environmental, social, and governance (ESG) standards.

As Nigeria’s financial landscape evolves, UBA’s willingness to document its setbacks alongside its progress may serve as a benchmark for what credible corporate governance looks like in practice.

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