CBN Fires Titan Trust, Union, Keystone, Polaris Bank Boards

CBN Fires Titan Trust, Union , Keystone, Polaris Bank Boards

The Central Bank of Nigeria has made a big decision. They have removed the board and management of four banks: Titan Trust Bank, Union Bank, Keystone Bank, and Polaris Bank. This decision came after a report was given to President Bola Tinubu by a special investigator named Jim Obazee.

Why Were the Boards Dissolved?

The boards of these banks were dissolved after a meeting between the CBN Governor, Yemi Cardoso, Jim Obazee, and the boards of the four banks. The investors of Titan Trust Bank had been avoiding meeting with the special investigator, but they were finally forced to attend. The decision to dissolve the boards was made because the investors did not provide the necessary documents to prove their ownership of the banks.

Titan Trust Bank’s Troubles

Mr. Tunde Lemo, the Chairman of Titan Trust Bank, was summoned by the special investigator. He is also a former deputy governor of the CBN. Lemo requested more time for shareholders to prove their ownership of the bank, but his request was rejected. The special investigator insisted that Lemo and others must appear and prove that their acquisition of Union Bank followed the correct process. If they don’t, the Nigerian government might take over the bank.

Summoned to Appear

In a letter dated December 24, 2023, Lemo was instructed to report to the Department of Force Intelligence in Abuja. He was also told to bring the promoters of Titan Trust Bank, Mr. Vink, and Mr. Savara, with him. They were asked to bring all the necessary documents and provide additional statements.

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Other Banks Involved

The report of the special investigator also revealed that former CBN governor, Godwin Emefiele, allegedly used his proxies to acquire Union Bank. The late Alhaji Ismaila Isa Funtua, an ally of former President Muhammadu Buhari, was also linked to the acquisition of Keystone Bank and Polaris Bank. The acquisitions were done separately over time.

Conclusion

The special investigator concluded that the shareholders failed to provide the necessary documents to prove their ownership of the banks. They recommended that the Nigerian government should take over the banks from the purported owners. However, Mr. Lemo rejected this assertion and asked for more time for shareholders to prove their ownership. The future of these banks remains uncertain.

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