Zenith Bank in Compliance Violations

The 2023 Auditor General’s Report has flagged serious regulatory breaches at Zenith Bank, particularly in liquidity management and financial compliance. The audit revealed that the bank’s cash reserve ratio stood at 11%—below the required minimum of 12% mandated by the Banking Act of 2019. Additionally, its liquidity ratio was recorded at 54%, significantly lower than the required 75%, raising concerns about the bank’s ability to meet its financial obligations. The report also uncovered irregularities in procurement and expenditure documentation. Zenith Bank failed to provide supporting documents for several expenses, including advertisement costs totaling NLe1,808,093. The audit team found no evidence of a completed procurement process, no formal contract agreement with the service provider, and no traceable fund transfer for the services rendered. These gaps in documentation raise concerns about transparency and compliance with procurement laws. Furthermore, auditors attempted a physical verification of the bank’s fixed assets, but several assets listed in the bank’s records could not be located. This discrepancy casts doubt on the accuracy of its asset management. Despite recommendations in previous audits, Zenith Bank has yet to implement corrective measures to address regulatory compliance, liquidity management, and procurement transparency. The findings underscore the need for urgent reforms to ensure adherence to banking regulations and financial accountability.