In a brief statement on Wednesday, the Central Bank of Nigeria (CBN) announced the dissolution of the boards and management of Union Bank, Keystone Bank, and Polaris Bank. The central bank attributed this action to the non-compliance of the mentioned banks and their respective boards with the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, specifically Section 12(c), (f), (g), (h), raising concerns about the financial stability of the system.
While the CBN did not comment on the recommendation by Special Investigator Jim Obazee, appointed by President Bola Ahmed Tinubu to probe the CBN under former Governor Godwin Emefiele, it later revealed new appointments for the affected banks.
The newly appointed executives for Union Bank include Yetunde Oni as Managing Director/Chief Executive Officer and Mannir Ubali Ringim as Executive Director. For Keystone Bank, Hassan Imam takes on the role of Managing Director/Chief Executive, and Chioma Mang becomes Executive Director. In the case of Polaris Bank, Lawal Mudathir Omokayode Akintola is appointed as Managing Director/Chief Executive, with Chris Onyeka Officer as Executive Director. These appointments, effective immediately, come as part of the CBN’s efforts to address the challenges identified in the affected banks.
Union Bank, the second oldest bank in Nigeria, recently merged with Titan Trust Bank, and its new leadership aims to navigate through this transition. Polaris Bank, previously Skye Bank, faced controversy during its acquisition by a northern interest group approved by President Muhammadu Buhari. Keystone Bank, having a storied legacy as one of the four largest banks before being taken over by AMCON, is now set for a new chapter with the appointed leadership.
The CBN emphasized its commitment to the safety and security of depositors’ funds, assuring the public of a strong and resilient banking system. The dissolution of the boards and management was deemed necessary due to infractions ranging from regulatory non-compliance to corporate governance failures and activities threatening financial stability. The apex bank remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria.