CBN To Hold Crucial Meetings With Union, Polaris, Keystone Banks’ Shareholders

After sacking the boards of Union Bank, Polaris Bank and Keystone Bank over allegations of corporate governance failure, the Central Bank of Nigeria (CBN) leadership will be meeting the shareholders of the affected banks this weekend or early next week.

The meetings are a follow-up to the CBN’s removal of the three banks’ boards on Wednesday. According to sources close to the CBN and the Special Investigator, Mr Jim Obazee, the engagements will involve the teams of the CBN Governor, Olayemi Cardoso, and Mr. Obazee.

However, the specific agenda of the shareholder meetings remains unclear.

Our sources reveal that the meetings are part of the continuing implementation of Mr. Obazee’s report submitted to President Bola Tinubu last month.

In dissolving the banks’ boards, the CBN accused them of regulatory non-compliance, poor corporate governance, violation of licensing conditions and engaging in activities that threaten financial stability.

Barely 24 hours after the sack of the boards, the CBN announced interim managing directors and executive directors to oversee Union, Polaris and Keystone banks.

The MDs and EDs appointed are Yetunde Oni and Mannir Ubali Ringim for Union Bank; Hassan Imam and Chioma Mang for Keystone Bank; as well as Lawal Mudathir Omokayode Akintola and Chris Onyeka Ofikulu for Polaris Bank.

Sources within the apex bank reveal that more board members may be announced soon for the affected lenders.

While nationalization remains an option, CBN officials suggest the banks may be handed to the interim teams to resolve issues within 3-6 months before a potential sale.

The meetings with shareholders are critical next steps in charting the path forward for the banks. Depositors and customers of Union Bank, Polaris and Keystone Banks have been assured of the safety of their funds by the banks.

Meanwhile, the Union Bank of Nigeria has assured its customers on the safety of customers’ funds.

An e-mail notice shared with its customers read, “As you may already know, CBN, in its efforts to ensure a stable and effective banking sector, has dissolved the Board of Union Bank of Nigeria and appointed new executives to oversee its operations.

“We want to assure you that your accounts and funds are safe with the bank. Union Bank remains committed to serving our valued customers, and your financial well-being is our priority.

“Your trust in Union Bank is important to us, and we will continue to operate with the same dedication to transparency, integrity, and customer satisfaction with which we have served our customers for 106 years.”