CBN sacks leadership of three banks sold under Emefiele

In a major shakeup of the banking sector, the Central Bank of Nigeria (CBN) has dismissed the boards of directors of four banks: Union Bank, Keystone Bank, and Polaris Bank.

“The banks’ infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licences were granted, and involvement in activities that pose a threat to financial stability, amongst others,” the CBN said in a statement late Wednesday.

Spokesperson Hakama Sidi Ali said the depositors’ funds in the banks were safe, and the Nigerian banking system “remains strong and resilient.”

The takeover of the three banks comes amid ongoing special investigations into the CBN’s operations under the previous governor, Godwin Emefiele.

All three banks are under scrutiny as part of the investigation. They were sold under controversial circumstances when Mr Emefiele was governor of the central bank.

Special Probe

The special investigator, Jim Obazee, appointed by President Bola Tinubu to investigate the activities of the Central Bank of Nigeria submitted its report in December.

The investigation, initiated in July, made stunning revelations.

It found, for instance, that the central bank printed more money than earlier reported. The bank operated hundreds of foreign accounts without approval, and former finance minister Zainab Ahmed played a role in the abuse of the government lending facility, Ways and Means.

Officials brazenly stole public money, according to the report, a part of which was seen by Pluboard.