The Central Bank of Nigeria (CBN) has sacked the Boards of Directors and management teams of Union, Keystone, and Polaris Banks.
The board and management dissolution is with immediate effect.
All the managing directors and executive directors of the three banks are affected with the dissolution.
Sources at the apex bank opined that the decision to sack the boards was taken at a meeting chaired by Governor Yemi Cardoso on Wednesday in Abuja.
The managements and boards of the affected three banks and the CBN Special Investigator were in attendance.
The apex bank, in a statement issued by Mrs. Sidi Ali, Hakama, Ag. Director, Corporate Communications, “this action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c), (f), (g), (h) of Banks and Other Financial Institutions Act, 2020.”
According to the CBN, “The banks’ infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses were granted, and involvement in activities that pose a threat to financial stability, among others.
“The CBN assures the public of the safety and security of depositors’ funds and remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria. Our Banking system remains strong and resilient.”
The development was consequent upon the recommendation of the Special Investigator, Jim Obazee, appointed by President Bola Tinubu to probe CBN activities.
The report had indicted the immediate past governor of CBN, Godwin Emefiele, of using cronies to purchase some of the banks without evidence of payment.
Also, Obazee said the purchase of some of the banks didn’t follow due process.