January 11, 2024 NewsOrient
By Sam Egburonu, Editor

The tension trailing Central Bank of Nigeria’s decision earlier in the week to dissolve the Board of Directors of Union Bank, Polaris Bank, Keystone Bank and Titan Trust Bank has further deepened following the apex bank’s decision to appoint new top executives for the affected banks, reports NewsOrient.

This CBN’s latest action has triggered immediate controversy across Nigeria as some ask if the CBN, though Nigeria’s apex bank, has the right to dismiss and replace boards and management of commercial banks the way it is currently carrying out the action.

Others are curious to know the details of the corruption charges that informed such an action by the Central Bank against the affected banks.

CBN’s latest action of appointing top executives for the affected banks is contained in a statement issued by CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi-Ali in Abuja.

According to Sidi-Ali, Yetunde Oni is the new Managing Director/Chief Executive Officer (CEO) of Union Bank while Mannir Ringim is the new Executive Director of the bank.

She said for Keystone Bank, Hassan Imam had been appointed as the new Managing Director/ CEO, while Chioma Mang was the new Executive Director.

She said Lawal Akintola was also appointed as Managing Director/ CEO of Polaris Bank, and Chris Ofikulu is Executive Director.

“The appointments take immediate effect,” Sidi-Ali said.

The News Agency of Nigeria (NAN) reports that “the decision to dissolve the board and management of the three banks and appoint new ones comes after the special investigator panel probing the CBN turned in its report.

“The report had accused the former CBN governor, Godwin Emefiele of using two Dubai-based companies, Luxis International and Magna International, to set up Titan Trust Bank (TTB) as proxies for the acquisition of Union Bank.

“The panel, led by Jim Obazee, on December 24, 2023, summoned Babatunde Lemo, Chairman of TTB, over the institution’s acquisition of Union Bank.

“It also also alleged impropriety in the transactions behind the acquisition of Keystone Bank,” reports NAN.

It would be recalled that when CBN suddenly dissolved the boards of the affected banks, the statement it released reads: “The Central Bank of Nigeria (CBN) has dissolved the boards and the management of Union Bank, Polaris Bank, Keystone Bank and Titan Trust Bank.

“The 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.”

Stakeholders and other observers told NewsOrient reporters today that the development has indeed raised concern over the fate of investors in the commercial banks and that of depositors and other customers of the affected banks.

“Is this a takeover of the banks or what? Whichever, am I sure my deposits in the banks are safe, asked Mrs Remi Adejare, who spoke to NewsOrient in Lagos.

~ NewsOrient