The apex bank justified this action by citing the non-compliance of these banks and their respective boards with the provisions outlined in Section 12(c), (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020.
The statement elucidated, “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.”
Assuring the public of the safety and security of depositors’ funds, the CBN emphasized its commitment to upholding a safe, sound, and robust financial system in Nigeria, asserting that the banking system remains strong and resilient.
In the backdrop of the decision, a special investigator appointed by President Bola Tinubu in December alleged that some individuals, acting as proxies for former CBN governor Godwin Emefiele, were involved in establishing Titan Trust Bank to acquire Union Bank. Titan Trust Bank, chaired by Tunde Lemo, refuted these claims.
Regarding Polaris Bank, allegations surfaced that a higher purchase offer had been made during the bank’s sale, compared to the offer accepted by the CBN. The apex bank, under the leadership of Godwin Emefiele, countered these claims, deeming them untrue.
