Following the sack of the Board and Management teams of Union, Keystone, Polaris and Titan Trust banks on Wednesday by the Central Bank of Nigeria, the apex bank has appointed new executives to oversee the affairs of three of the banks namely Union Bank, Keystone Bank and Polaris Bank.
In a post in the wee hours of Thursday on the verified X account of the apex bank @cenbank, signed by the Ag Director, Corporate Communications, Sidi Ali, Hakama (Mrs), and dated January 10, 2024, the following were listed in the post:
Union Bank : Yetunde Oni – Managing Director/ Chief Executive Officer ; Mannir Ubali Ringim – Executive Director
Keystone Bank : Hassan Imam – Managing Director / Chief Executive Officer ; Chioma A Mang – Executive Director
Polaris Bank : Lawal Mudathir Omokayode Akintola – Managing Director / Chief Executive Officer ; Chris Onyeka Ofikulu – Executive Director.
All the appointments, the post added, are with immediate effect.
Meanwhile, the apex bank explained in a late night post on Wednesday why it dissolved the board and management teams of the three banks. The bank explained 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 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.
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.”
Besides the explanation offered by the CBN, there has been widespread reports, alleging that the affected banks have been on the radar of the CBN based on 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.
