Zest Payments, the fintech arm of Stanbic IBTC Holdings, has been fined ₦2.7 million ($1,829) by the Central Bank of Nigeria (CBN) for failing to submit its 2023 audited financial statements within the regulatory deadline. The sanction, revealed in Stanbic IBTC’s half-year financial report, underscores the tightening compliance landscape for Nigeria’s fast-growing fintech industry. The delay, just two weeks past the March 31 submission cutoff, reflects broader challenges fintechs face balancing rapid growth with increasing regulatory scrutiny.
Regulatory Breach and Penalty
CBN mandates all licensed payment firms to file their audited financials by March 31 each year, with late submissions subject to daily fines. For Zest Payments, the delay resulted in a ₦2.7 million penalty, illustrating the regulator’s heightened vigilance over financial reporting compliance. These fines, while relatively small in amount, serve as a clear signal that the CBN is enforcing stricter accountability among financial service providers.
Financial Performance Under Pressure
Beyond compliance issues, Zest Payments continues to struggle with profitability despite steady revenue growth. The company generated ₦874 million in total income during the first half of 2025 but ended the period with a ₦389 million net loss. Rising costs—₦664 million in staff expenses and ₦593 million in operating costs—have eroded margins even after a ₦4 billion capital injection earlier in the year intended to support the firm’s e-commerce expansion strategy.
Part of Broader Compliance Crackdown
The CBN’s fine against Zest is part of a wider enforcement push targeting fintechs that miss reporting deadlines or breach licensing terms. In the past year, several high-profile players have been hit with substantial penalties. Paystack faced a ₦250 million fine for operating beyond its approved license, while Moniepoint and OPay were each fined ₦1 billion in 2024 for Know Your Customer (KYC) compliance failures. The pattern highlights the regulator’s intent to curb operational lapses and reinforce transparency in Nigeria’s digital finance sector.
Balancing Growth and Accountability
For startups like Zest, the fine is more than a monetary loss—it’s a warning that compliance now defines competitiveness in Nigeria’s fintech ecosystem. As market saturation increases and oversight intensifies, companies must integrate compliance frameworks early rather than treating them as afterthoughts. With CBN focusing on fraud prevention, KYC enforcement, and timely disclosures, the ability to maintain operational discipline will increasingly determine which fintechs sustain long-term success.
Zest Payments’ recent fine reinforces a growing reality across Nigeria’s financial technology space: speed without structure is no longer viable. The country’s regulators are making it clear that fintech innovation must coexist with robust governance and financial integrity. As firms continue to scale, striking the right balance between agility and accountability will be crucial to maintaining investor confidence and regulatory trust in Africa’s most dynamic fintech market.
Source: Condia