The Central Bank of Nigeria (CBN) has taken decisive action by removing the boards of Union Bank, Polaris Bank, and Keystone Bank, citing non-compliance with Sections 12(c), (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020.
In a statement signed by the Acting Director of Corporate Communications, Sidi Hakama, the CBN outlined the reasons for this action, emphasizing issues such as regulatory non-compliance, corporate governance failures, disregard for licensing conditions, and engagement in activities posing a threat to financial stability.
The CBN reassured the public regarding the safety of depositors’ funds, asserting its commitment to maintaining a secure, sound, and robust financial system in Nigeria.
The boards of directors and chief executives of the affected banks were summoned to a meeting on Wednesday, January 10, where they were individually addressed for 30 minutes by Phillip Ikeazor, the apex bank’s Deputy Governor in charge of Financial System Stability, alongside a panel comprising Deputy Governors Emem Usoro (Operations), Muhammad Abdullahi (Economic Policy), and Bala Bello (Corporate Services).
During the meeting, the panel outlined instances of non-compliance and other infractions committed by the banks, leading to the formal dismissal of their boards. This action followed a recent report from the Special Investigator on the Central Bank of Nigeria (CBN) and related entities, Jim Obazee.
Additionally, it was reported that investors in Titan Trust Bank, invited by the special investigator appointed by President Bola Tinubu, declined to attend a meeting with the Special Investigator.
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
Ada Peter
