CBN sacks boards of Keystone, Polaris, Titan, Union banks

The Central Bank of Nigeria (CBN) has dissolved the boards and management of Polaris Bank, Keystone Bank, Titan Trust Bank, and Union Bank.

The apex bank made this known in a formal statement that was uploaded to its official X (formerly Twitter) account.

The statement reads, “The Central Bank of Nigeria (CBN) has dissolved the boards and management of Union Bank, Polaris Bank, Keystone Bank, and Titan Trust Bank.

https://imasdk.googleapis.com/js/core/bridge3.609.1_en.html#goog_1135305401 The 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 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.”

The development may not be unconnected with the recommendation of Jim Obazee, the Special Investigator, who was appointed by President Bola Tinubu in July 2023, to probe the activities of the CBN and other relevant establishments.

The report of the special investigation into the activities of the CBN had accused Godwin Emefiele, the immediate past governor of the apex bank, of acquiring banks for himself through proxies.

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.

As a result, it recommended that the Federal Government reverse the sale of the banks and take them over.