In a decisive move on Wednesday, the Central Bank of Nigeria (CBN) dissolved the boards and managements of Polaris, Union, and Keystone Banks.
CBN, through Hakama Sidi Ali, its acting director of corporate communications, stated that the dissolution was imperative due to the banks and their boards’ non-compliance with Sections 12 (c), (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020.
The infractions cited by CBN range from regulatory non-compliance to corporate governance failure, disregarding license conditions, and engagement in activities threatening financial stability.
Assuring the public, CBN emphasized the safety and security of depositors’ funds, asserting its commitment to a safe, sound, and robust financial system in Nigeria.
CBN affirms the strength and resilience of Nigeria’s banking system amidst the decision.
This action follows revelations from a special investigator panel probing CBN, uncovering alleged use of two Dubai-based companies (Luxis International and Magna International) by former CBN governor, Godwin Emefiele, to establish Titan Trust Bank (TTB) as proxies for Union Bank’s acquisition.
Led by Jim Obazee, the panel disclosed transactions behind the Keystone Bank acquisition and exposed unapproved activities of the former CBN governor, directors, and government officials.
In a related development, on December 24, 2023, the special panel summoned Babatunde Lemo, TTB chairman, regarding the institution’s acquisition of Union Bank.
See CBN circular:
