The Central Bank of Nigeria (CBN) has dismissed the boards of Union Bank, Polaris Bank, Keystone Bank, and Titan Trust Bank.
The top bank in a statement signed by its Acting Director of Corporate Communications, Sidi Hakama, said “this 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.”
It added that “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 Central Bank of Nigeria (CBN) has reassured the public that depositors’ funds are safe and secure. The CBN is committed to its mandate of maintaining a strong and stable financial system in Nigeria.
On Wednesday, January 10, the boards of directors and chief executives of the banks were invited to a meeting. During the meeting, the Deputy Governor in charge of Financial System Stability, Phillip Ikeazor, addressed each bank for 30 minutes.
A panel of three other governors also spoke to the bank executives. These governors are responsible for Operations, Economic Policy, and Corporate Services.
The panel discussed the problems of non-compliance and other violations committed by the banks in question and officially removed their boards.
The action was taken in response to a recent report by Jim Obazee, the Special Investigator on the Central Bank of Nigeria (CBN) and related entities.
Prior to this, President Bola Tinubu had appointed a special investigator who had invited the investors of Titan Trust Bank to a meeting, but they allegedly declined to attend.
See the full statement below:
CBN Dissolves the Board and Management of Union Bank, Keystone Bank and Polaris Bank
The Central Bank of Nigeria (CBN) has dissolved the Board and Management of Union Bank, Keystone Bank, and Polaris Bank.
This 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.
Sidi Ali, Hakama (Mrs.)
Ag. Director, Corporate Communications
