CBN Takes Decisive Action: Dissolves Boards of Union, Keystone, and Polaris Banks

In a significant move, the Central Bank of Nigeria (CBN) announced the dissolution of the boards of Union Bank, Keystone Bank, and Polaris Bank on Wednesday. These actions are part of ongoing special investigations into the management of the CBN during the tenure of former CBN governor Godwin Emefiele.

Sidi Hakama, the acting Director of Corporate Communications at CBN, conveyed this development in a statement, assuring the public of the safety and security of depositors’ funds.

The CBN cited non-compliance with the provisions of Section 12(c), (g), (h) of the Banks and Other Financial Institutions Act, 2020, as the reason for dissolving the boards. The infractions include regulatory non-compliance, corporate governance failure, disregard for the conditions under which their licenses were granted, and engagement in activities that posed a threat to financial stability.

“The Central Bank of Nigeria (CBN) has dissolved the Board and Management of Union Bank, Keystone Bank, and Polaris Bank,” the statement read.

Highlighting the commitment to upholding a safe, sound, and robust financial system in Nigeria, the CBN emphasized the strength and resilience of the banking system despite these actions.

This decision follows the recommendations of the Special Investigator, Jim Obazee, appointed by President Bola Tinubu in July 2023 to investigate the activities of the CBN and other relevant establishments. The report alleged that Emefiele used proxies to acquire Union Bank of Nigeria for Titan Trust Bank Limited and Keystone Bank without providing evidence of payment. The recommendation from the report is for the federal government to recover these banks.