The Central Bank of Nigeria (CBN) on Wednesday, dissolved the boards and management of Polaris, Union and Keystone Banks.

In a statement signed by the apex bank’s Hakama Sidi Ali, acting director, corporate communications, said the action became necessary due to the non-compliance of the banks and their respective boards with “provisions of Section 12 (c), (f), (g), (h) of the Banks and Other Financial Institutions Act, 2020”.

“The Bank’s 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,” CBN said.

The financial regulator assured the public of the safety and security of depositors’ funds, adding that it remains resolute in fulfilling its mandate to uphold a safe, sound, and robust financial system in Nigeria.

CBN said Nigeria’s banking system remains strong and resilient.

The decision comes weeks after the special investigator panel probing the CBN and related entities disclosed how Godwin Emefiele, the former central bank governor, allegedly used two Dubai-based companies (Luxis International and Magna International) to set up Titan Trust Bank (TTB) as proxies for the acquisition of UBN.

The panel, led by Jim Obazee, had in their findings also shown the transactions behind the acquisition of Keystone Bank.

The panel’s report revealed other unapproved activities of the former CBN governor, directors and some government officials.

Meanwhile, on December 24, 2023, the special panel had in a letter summoned Babatunde Lemo, chairman of TTB over the institution’s acquisition of Union Bank.