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CBN gives reasons for dissolution of boards of Union, Keystone, Polaris, Titan Trust banks

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Appetite for all things foreign to blame for naira collapse, $98bn spent on medical tourism, others in 10 years - CBN 

The Central Bank of Nigeria (CBN) has justified its decision to dissolve the boards and management of Union Bank, Polaris Bank, Keystone Bank and Titan Trust Bank, noting that the action was taken 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 apex bank made the disclosure in a formal statement that was uploaded to its official X account.

The Banks’ 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.

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

“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.”

Beyond the explanations by the CBN, it was learned that the action against the affected banks followed 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 of the special investigation into the activities of the CBN had accused the immediate past governor of the apex bank, Godwin Emefiele, 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.

 

 

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