On Wednesday, the Central Bank of Nigeria (CBN) dissolved the boards of Union Bank, Keystone Bank, and Polaris Bank. These banks are currently under special investigations regarding the management of the CBN during the tenure of former CBN governor, Godwin Emefiele. Sidi Hakama, the acting Director of Corporate Communications at CBN, conveyed this development in a statement on the same day.
The CBN emphasized the safety and security of depositors’ funds while attributing this measure to the non-compliance of the banks and their boards with the stipulations outlined in Section 12(c), (g), (h) of the Banks and Other Financial Institutions Act, 2020.
The statement from the CBN outlined the reasons for dissolution, citing infractions such as regulatory non-compliance, corporate governance failure, disregarding license conditions, and engagement in activities posing a threat to financial stability.
The dissolution is a response to the findings of the Special Investigator, Jim Obazee, appointed by President Bola Tinubu in July 2023 to investigate the CBN’s activities and other relevant entities. The report suggested that Emefiele utilized proxies to acquire Union Bank of Nigeria for Titan Trust Bank Limited and Keystone Bank without evidence of payment, recommending the recovery of these banks by the federal government. The CBN reiterated its commitment to maintaining a secure and resilient financial system in Nigeria.