Central Bank of Nigeria dissolves boards of 3 banks, appoints new leadership amidst financial infractions

The Central Bank of Nigeria (CBN) has dissolved the Boards of Directors governing Polaris, Union, and Keystone banks, citing grave infringements of financial laws. 

Following this action, the apex bank swiftly appointed new executive directors to take charge of the affairs of these commercial banks.

According to a statement released today – Thursday January 11, 2024 – by its acting Director of Corporate Communications, Sidi Hakama, the CBN said the appointments are effective immediately. 

The newly appointed executives include Yetunde Oni, the first female CEO of Standard Chartered bank in Sierra Leone, as the Chief Executive Officer of Union Bank, and Mannir Ubali Ringim as the Executive Director.

For Keystone Bank, Hassan Imam assumes the role of Chief Executive Officer, with Chioma Mang appointed as the Executive Director. 

Additionally, Lawal Mudathir Omokayode Akintola has been appointed as the Chief Executive Officer of Polaris Bank, with Chris Ofikulu taking on the position of Executive Director.

This bold move by the CBN comes after the dismissal of the entire boards of the four banks on Wednesday night. 

The reasons cited for the dismissals include regulatory non-compliance, corporate governance failure, disregard for license conditions, and engagement in activities threatening financial stability. 

The CBN, exercising its regulatory powers, asserted that the dissolution of the boards was imperative due to their non-compliance with the provisions of the Financial Institutions Act, 2020.

The PUNCH reports that the CBN’s action follows a recommendation from the Special Investigator, Jim Obazee, appointed by President Bola Tinubu in July 2023 to probe the activities of the CBN and related establishments. 

The investigative report accused the former Governor of the CBN, Godwin Emefiele, of allegedly acquiring banks through proxies.

It 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 statement: “Following the dissolution of the Board and Management of Union Bank, Keystone Bank and Polaris Bank on Wednesday, January 10, the CBN has appointed new executives to oversee the affairs of the banks.

“Union Bank: Yetunde Oni – Managing Director/Chief Executive Officer Mannir Ubali Ringim – Executive Director.

“Keystone Bank: Hassan Imam – Managing Director/ Chief Executive Officer Chioma A. Mang – Executive Director.

“Polaris Bank: Lawal Mudathir Omokayode Akintola – Managing Director/ Chief Executive Officer Chris Onyeka Ofikulu – Executive Director.

“The appointments take immediate effect.”