CBN appoints CEOs for Union, Keystone, Polaris Banks after takeover

The Central Bank of Nigeria (CBN) has appointed new management teams to lead Union Bank, Keystone Bank, and Polaris Bank, after dissolving the boards of directors at the financial institutions.

The regulator appointed Yetunde Oni as managing director and chief executive officer at Union Bank, and Mannir Ubali Ringim as the executive director.

Hassan Imam is the MD/CEO at Keystone Bank, while Chioma A. Mang is the executive director.

Lawal Mudathir Omokayode Akintola is the MD/CEO at Polaris Bank, with Chris Onyeka Ofikulu named executive director.

In an earlier statement Wednesday, the CBN it sacked the banks’ boards and management teams as a result of a string of violations by the lenders.

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

The action comes amidst ongoing special investigations into the CBN’s operations under Governor Godwin Emefiele, who oversaw the controversial sale of all three banks during his tenure. The special investigator appointed by President Bola Tinubu, Jim Obazee, submitted a damning report in December 2023, revealing stunning irregularities and financial mismanagement within the central bank.

Among the revelations, the report found:

• Claims the banks were sold to cronies or fronts of officials at the regulator
• Undisclosed Money Printing: The CBN printed significantly more money than previously reported.
• Unauthorized Foreign Accounts: Hundreds of foreign accounts operated without approval.
• Ways and Means Abuse: Former Finance Minister Zainab Ahmed played a role in misusing government lending facilities.
• Public Fund Theft: Officials brazenly stole public money, according to Pluboard’s review of the report.

More Questions

The CBN’s move has raised questions.

“The CBN interventions has raised concerns whether the regulator is taking over the three banks on behalf of the country and who the new shareholders are,” Olufemi Awoyemi, financial analyst and founder of Proshare, said on X, formerly Twitter.

“The current change by @cenbank was always a possible outcome without the needed clarity on the underlying transactions that informed the decision (as a market learning signal) and the role of the special investigator.

“That said, the market concern(s) are about the sanctity of the architecture, and we intend to undertake a few spring cleaning exercises for clarity over CBN’s actions, viz: Are the three banks now ‘nationalized’? Who owns the bank’s equity if (1) holds true? What is the role of the established entities for bank takeovers within the established laws under the present arrangement? 4. For how long will these entities function without a substantive board?”