- The apex bank announced the dissolution of the banks’ board in a statement by Sidi Hakama, its acting Director of Corporate Communications, on Wednesday.
The Central Bank of Nigeria, CBN, has disolved the boards of Union Bank, Keystone Bank and Polaris Bank.
The apex bank announced the dissolution of the banks’ board in a statement by Sidi Hakama, its acting Director of Corporate Communications, on Wednesday.
All affected banks are indicted in the special investigations questionable management of the CBN under the ex governor, Godwin Emefiele.
The CBN, however, guaranteed the public of the safety and security of depositors’ funds.
The apex bank disclosed that its action was necessitated by the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (g), (h) of the Banks and Other Financial Institutions Act, 2020.
“The Central Bank of Nigeria (CBN) has dissolved the Board and Management of Union Bank, Keystone Bank, and Polaris Bank.
“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 posed a threat to financial stability, among others.
“The CBN assures the public of the safety and security of depositors’ funds and remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria. Our banking system remains strong and resilient,” it stated.
The action follows the recommendation of the Special Investigator, Jim Obazee, appointed by President Bola Tinubu in July 2023, to probe the activities of the CBN and other relevant establishments.
The report stated that Emefiele used proxies to acquire Union Bank of Nigeria for Titan Trust Bank Limited and Keystone Bank without any evidence of payment.
He recommended that the federal government recover the banks.