The Central Bank of Nigeria leadership will hold meetings with the shareholders of Union Bank of Nigeria, Polaris Bank, and Keystone Bank this weekend or early next week as a follow-up to the sack of the boards of directors of the three banks.
The CBN may soon name other members of the boards of the affected banks. According to CBN officials, the constitution of a complete board and management team for the lenders requires more than just a managing director and one ED.
As a result, they said an announcement of other board members for the three banks might be done very soon.
It would be recalled that the board of directors of Union Bank of Nigeria, Polaris Bank, and Keystone Bank were sacked.
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Reason for the Dismissal of Union Bank Directors
The dismissal of the boards of the banks is said to be a component of the implementation of the findings from the special investigator’s report.
In a statement released on Wednesday by the acting Director of Corporate Communications at the Central Bank of Nigeria (CBN), Sidi Hakama, the central bank stated that the reasons behind the removal of the boards were diverse and included allegations of regulatory non-compliance, failure in corporate governance, disregard for the conditions under which their licenses were granted, and engagement in activities that posed a threat to financial stability, among other issues.
As a result, the apex bank justified the dissolution of the boards by citing the banks’ and their respective boards’ failure to comply with the provisions outlined in the Bank and Other Financial Institutions Act of 2020.
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