Titan, Union, Keystone, and Polaris Banks’ Boards Fired by CBN
Titan Trust Bank, Union Bank, Polaris Bank, and Keystone Bank all had their boards removed by the Central Bank of Nigeria (CBN).
On January 10, the top bank’s Deputy Governor in Charge of Financial System Stability, Phillip Ikeazor, addressed the bank boards of directors and chief executives for 30 minutes apiece during a meeting that was invited to them.
A panel consisting of three additional governors met with the bank officials. Emem Usoro, Muhammad Abdullahi, and Bala Bello are the Deputy Governors responsible for operations, economic policy, and corporate services, respectively.
The panel formally removed the boards after uncovering non-compliance and other violations by the impacted institutions.
These developments followed Jim Obazee’s recent report on the CBN and Related Entities, who served as the Special Investigator.
Titan Trust Bank investors allegedly turned down a meeting invitation from the special investigator that President Bola Tinubu had appointed earlier.
In a statement released on Wednesday, the central bank reiterated the news, referencing certain sections of the Banks and Other Financial Institutions Act, 2020: 12(c), (f), (g), and (h).
“This action became necessary due to the non-compliance of these institutions and their respective boards with the provisions of Section 12(c), (f), (g), and (h) of the institutions and Other Financial Institutions Act, 2020,” stated Sidi Hakama, the Acting Director of Corporate Communications of the Central Bank of Nigeria (CBN).
“Among the many breaches committed by the bank include regulatory non-compliance, corporate governance failure, acting in a way that undermines financial stability, and ignoring the terms under which their licences were issued.”
The central bank reassured the public that their money would be kept safe and sound, and it stated its determination to fulfil its responsibility of maintaining a strong financial system in Nigeria.
The Central Bank of Nigeria (CBN) has stated that the country’s financial system is robust and secure.
Here is the complete statement:
Union Bank, Polaris Bank, and Keystone Bank are all dissolved by CBN.
Federal Bank of Nigeria (FBN) officials have sacked Union Bank, Keystone Bank, and Polaris Bank’s management and board of directors.
This action was made necessary because these banks and their boards did not follow the rules set forth in Section 12(c), (f), (g), and (h) of the Banks and Other Financial Institutions Act, 2020. The bank has committed a wide range of violations, including failing to comply with regulations, engaging in corporate governance issues, acting in a way that undermines financial stability, and ignoring the terms under which their licences were issued.
Depositors’ money is safe with the CBN, and the central bank is determined to carry out its mission of maintaining a strong and stable financial system in Nigeria. We have a banking system that is robust and steady.
Sidi Ali’s wife, Hakama
Executive in Charge of Corporate Communications