Why Nigeria’s Central Bank dissolved board, management of Union Bank, others

By Chioma Obinagwam

Nigeria’s apex bank, the Central Bank of Nigeria (CBN) has dissolved the Board and Management of Union Bank, Keystone Bank, and Polaris Bank.

CBN told Confiance News in a statement on Wednesday.

The apex bank said the dissolution is not unconnected with the banks’ non-compliance with banking regulations, bad corporate governance, among others.

“This action became necessary due to the non-compliance of these banks and
their respective boards with the provisions of Section 12(c), (f), (g), (h) of 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 disclosed in a statement.

It reassured Nigerians of the safety of their monies in the bank.

“The CBN assures the public of the safety and security of depositors’ funds and
remains resolute in fulfilling its mandate to uphold a safe, sound, and robust
financial system in Nigeria. Our Banking system remains strong and resilient,” the apex bank added.

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