CBN Dissolves Boards and Management of Union Bank, Keystone, and Polaris

By Iyojo Ameh

In a move aimed at addressing regulatory non-compliance and corporate governance failures, the Central Bank of Nigeria (CBN) has dissolved the Boards and Management of Union Bank, Keystone Bank, and Polaris Bank.

The decision came after a meeting between the CBN leadership in Abuja.

According to a statement released by the CBN on Thursday, January 11, 2024, the action was taken due to the banks’ failure to comply with the provisions of Section 12(c), (f), (g), and (h) of the Banks and Other Financial Institutions Act, 2020.

Mrs. Sidi Ali Hakama, Acting Director of Corporate Communications at the Apex Bank, confirmed the dissolution in a statement obtained on Monday.

The statement cited various infractions, including regulatory non-compliance, corporate governance failures, disregarding license conditions, and involvement in activities posing a threat to financial stability. Despite these challenges, the CBN assured the public of the safety and security of depositors’ funds, emphasizing its commitment to upholding a safe, sound, and robust financial system in Nigeria.

In response to the dissolution, the CBN has appointed new executives for Union Bank, Keystone Bank, and Polaris Bank, signaling a strategic effort to address the identified issues and restore stability within the banking sector.