The Central Bank of Nigeria (CBN) has taken decisive action by dissolving the boards and management of three major banks – Union Bank, Keystone Bank, and Polaris Bank. This significant move, announced on Wednesday, has been followed by the immediate appointment of new executive officers to steer the banks back to compliance and stability.
In an official circular released on January 10, 2024, the Acting Director of Corporate Communication, Sidi-Ali Hakama, revealed that the new executives will take charge with immediate effect. The appointments are as follows:
Union Bank:
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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
The CBN justified its drastic action, citing a myriad of concerns such as regulatory non-compliance, failures in corporate governance, and engagement in activities threatening financial stability.
Mrs. Sidi Ali Hakama, the Acting Director of Corporate Communications at the CBN, emphasized the necessity of this intervention, pointing to the banks’ non-compliance with the provisions of the Banks and Other Financial Institutions Act, 2020.
“This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12©, (f), (g), (h) of the 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,” she said.
Furthermore, the Central Bank alluded to the involvement of the banks in activities that pose a threat to financial stability, disregarding the conditions under which their licenses were granted. The move follows a detailed investigation, with the Special CBN Investigator, Jim Obazee, summoning Titan Trust Bank’s chairman, Babatunde Lemo, for questioning in December 2023 regarding Titan Trust Bank’s acquisition of Union Bank of Nigeria Plc (UBN).
The investigative report suggested the use of proxies by a former CBN Governor, Godwin Emefiele, to establish Titan Trust Bank and acquire Union Bank. Titan Trust Bank, in response, issued a press release denying any wrongdoing.
A leaked report by the Special Investigation on the Central Bank of Nigeria and other entities also made allegations of financial and legal irregularities within the CBN during Godwin Emefiele’s leadership. This has raised questions about the overall stability and transparency within the financial regulatory institution.
The newly appointed CEOs and Executive Directors will now face the arduous task of restoring the banks’ reputations, ensuring compliance, and rebuilding investor confidence. The ramifications of these swift actions by the CBN are likely to have a profound impact on the affected banks’ operations, financial health, and standing in the Nigerian banking sector.