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CBN Triggers Banking Shake-Up: Sacks Boards at Union, Keystone, and Polaris Banks



In a stunning move, the Central Bank of Nigeria (CBN) dissolved the management and boards of Union, Polaris, and Keystone banks, with the federal government swiftly stepping in to take control. The decision, made after an intense meeting of the Committee of Governors (CoG) and the Obazee team, was accelerated with the approval of President Bola Tinubu, signaling a dramatic overhaul in the country’s financial landscape.

The CBN cited various infractions, ranging from regulatory non-compliance to corporate governance failures and threats to financial stability, as the driving force behind the takeover. Acting Director of Corporate Communications, Hakama Sidi Ali, emphasized the necessity of the action, asserting that it was a response to the banks’ non-compliance with key provisions of the Banks and Other Financial Institutions Act, 2020. As the apex bank prepares to communicate the decision to the banks today, the financial sector is abuzz with speculation, and interim management and boards are poised to be unveiled to ensure a seamless transition. The move comes on the heels of a detailed investigation by Special Investigator Jim Obazee, who uncovered alleged fraudulent acquisitions involving Titan Trust Bank, linking them to former CBN governor Godwin Emefiele. This extraordinary shake-up aims to restore corporate governance and stability to the beleaguered financial institutions, setting a bold precedent for regulatory interventions in the sector.