In a significant development in Nigeria's financial sector, the Central Bank of Nigeria (CBN) has announced the dissolution of the Board and Management of Union Bank, Keystone Bank, and Polaris Bank. The move, effective immediately, comes as a response to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020, as revealed in a statement by the Acting Director of Corporate Communications, Sidi Ali Hakama.
Union Bank:
Yetunde Oni has been appointed as the Managing Director and Chief Executive Officer of Union Bank, bringing with her 25 years of experience in the banking sector. Mannir Ubali Ringim will serve as the Executive Director alongside Oni.
Keystone Bank:
Hassan Imam takes charge as the Managing Director and Chief Executive Officer of Keystone Bank, succeeding Olaniran Olayinka. Chioma A. Many assume the role of Executive Director.
Polaris Bank:
Lawal Mudathir Omokayode Akintola is appointed as the Managing Director and Chief Executive Officer of Polaris Bank, with Chris Onyeka Ofikulu serving as the Executive Director.
The apex bank emphasized that these appointments take immediate effect.
The decision to dissolve the boards was attributed to various infractions committed by the banks, including regulatory non-compliance, corporate governance failure, disregarding license conditions, and engaging in activities posing a threat to financial stability.
The CBN, in a bid to address the concerns raised, invited the boards of directors and chief executives of the affected banks to a meeting on January 10. During the meeting, the Deputy Governor in charge of Financial System Stability, Phillip Ikeazor, along with three other governors, formally addressed the bank executives, highlighting the issues of non-compliance and other infractions before officially sacking the boards.
This move by the CBN follows recent speculation regarding the possible takeover of banks, fueled by a report from CBN special investigator Jim Obazee, which implicated ex-bank chief Godwin Emefiele. The apex bank dismissed these speculations, ensuring depositors of the safety of their funds.
The Special Investigator had previously summoned Titan Trust Bank (TTB) Chairman Babatunde Lemo and two shareholders over the acquisition of Union Bank, uncovering alleged irregularities and controversies surrounding the deal.
The new executive appointments mark a pivotal moment in the restructuring of these financial institutions, and the CBN remains resolute in upholding a safe, sound, and robust financial system in Nigeria. The assurance of the safety and security of depositors' funds underlines the regulatory authority's commitment to maintaining public trust in the banking sector.
