Victor EzejaThe Central Bank of Nigeria (CBN) has dissolved the board and management team of Union Bank, Keystone Bank, and Polaris Bank.
This was confirmed in a statement released on Wednesday, 10 January, signed by Sidi Ali Hakama, Acting Director, Corporate Communications, CBN.
Join our WhatsApp ChannelAccording to the statement, the apex bank’s action was due to serial non-compliance with critical regulatory provisions by the deposit money banks and their respective boards.
The CBN further clarified that the banks’ conduct which necessitated its decision included regulatory non-compliance, failures in corporate governance, and involvement in activities threatening financial stability.
Part of the statement reads: “This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020.
“The Bank’s infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses were granted, and involvement in activities that pose a threat to financial stability, among others.”
The apex bank assured the public that depositors’ funds in those banks are secured, adding that it remains resolute in fulfilling its mandate of “upholding a safe, sound and robust financial system in Nigeria.”
“Our banking system remains strong and resilient,” CBN further assured.
Why CBN Sacked the Banks’ Boards
The CBN’s action might not be unconnected with the outcome of the Special CBN Investigator, Jim Obazee’s report which alleged that the manner in which Union Bank of Nigeria was acquired by Titan Trust Bank did not follow due process.
READ ALSO: How Tunde Lemo’s Titan Trust Bank Acquired 90% Union Bank Shares
The investigator accused the embattled former CBN Governor, Godwin Emefiele, of using some individuals as proxies to set up Titan Trust Bank (TTB) and acquire Union Bank of Nigeria Plc (UBN).
Obazee subsequently invited TTB’s) chairman, Babatunde Lemo, to clear the air regarding their acquisition of Union Bank of Nigeria.
TTB, however, denied any wrongdoing in the acquisition of Union Bank, stating it followed due process.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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