The Central Bank of Nigeria has constituted new executives for Union Bank, Keystone Bank, and Polaris Bank, whose boards and managements were dissolved on Wednesday over alleged corporate governance infractions and non-compliance with regulatory requirements.
According to a release from CBN, signed by Sidi Ali, Hakama (Mrs.) Ag. Director, Corporate Communications, the executives to oversee the affairs of Union Bank are Yetunde Oni, Managing Director/Chief Executive Officer Mannir Ubali Ringim, Executive Director.
For Keystone Bank, Hassan Imam is the Managing Director/ Chief Executive Officer, while Chioma A. Mang is the new Executive Director.
Polaris Bank has Lawal Mudathir Omokayode Akintola as the Managing Director/ Chief Executive Officer and Chris Onyeka Ofikulu, Executive Director.
The appointments take immediate effect.
The sacking of the boards of the banks is reportedly part of the implementation of the report of the special investigator.
In the earlier statement by Hakama, announcing the sacking of the boards of the banks on Wednesday, CBN said the affected banks’ alleged infractions varied from regulatory non-compliance, corporate governance failure, disregarding of the conditions under which their licences were granted, and involvement in activities that posed a threat to financial stability, among others.
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Hence, the apex bank said the dissolution of the boards became necessary due to the non-compliance of the banks and their respective boards with the provisions of the Bank and Other Financial Institutions Act, 2020.
However, CBN statement is silent on Titan Trust Bank, even though the bank has reportedly acquired Union Bank.
The special investigator had given Titan Trust Bank and Union Bank investors a December 28, 2023 deadline to present themselves before its panel.
However, the lender through their lawyer, Gbolahan Elias QC, SAN, had asked for extension of the meeting to January 7, 2024.
Meanwhile, findings show that no fewer than 30 board chairmen, managing directors and directors of banks will be affected by the dissolution of the boards.
Each of the three banks reportedly have no fewer than 10 board members.
Titan Trust Bank Limited was established on the 12th of December, 2018 and obtained its national banking license on the 26th of April 2019, to operate as a commercial bank with national authorisation.
Polaris Bank was set up by the CBN on September 21, 2018, to offer commercial banking services to the Nigerian public. The bank commenced services on the same day, having purchased the assets, and assumed certain of the liabilities, of the defunct Skye Bank.
Keystone Bank is a full-service commercial bank wholly owned by the Asset Management Corporation of Nigeria and was granted a banking licence on August 5, 2011, by the CBN. Keystone Bank was acquired by a special-purpose vehicle.
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Union Bank of Nigeria was established in 1917 and is one of Nigeria’s long-standing and most respected financial institutions, offering a portfolio of banking services to individuals, SMEs, commercial and corporate clients.
Meanwhile, Titan Trust Bank Limited which was established barely three years ago, announced in 2022 its acquisition of the foremost bank.
The bank sought CBN’s no-objection approval in 2021 to its proposed consolidation with Union Bank by acquiring 91.5 per cent of Union Bank’s shares and an eventual merger between both banks.
By 2022, Titan Bank had acquired 93.4 per cent of Union Bank’s shares.
However, there have been concerns in the banking circle whether the government could take over Union Bank which has been duly acquired by private investors led by the TGI Group.