2024-01-10 20:38:18
Nigeria’s central bank has sacked the boards and management of three lenders for non-compliance with banking regulations and corporate governance failings, it said on Wednesday.
The banks affected are the private banks Union Bank, Keystone Bank and Polaris Bank, each of which has been placed under government control in the past.
The move by Central Bank Governor Olayemi Cardoso comes as the sector prepares for a regulatory-led capital increase, which the governor says is necessary to support Nigeria’s economic growth ambitions.
“The Central Bank of Nigeria (CBN) has dissolved the board and management of Union Bank, Keystone Bank and Polaris Bank,” the regulator said.
“Offences committed by banks range from non-compliance with regulations, failure of corporate governance, failure to comply with the conditions under which their licenses were granted, and involvement in illegal activities which pose a threat to financial stability.
which pose a threat to financial stability, among others.
Union Bank was recently sold to private bank Titan Trust Bank, headed by former central bank governor Godwin Emefiele, who was suspended by President Bola Tinubu following fraud allegations.
Mr Tinubu appointed a special investigator to probe the central bank under Mr Emefiele and analysts said the dismissal of the boards of the three banks might be linked to the investigation’s findings. The findings of the investigation have not yet been made public.
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