The Central Bank of Nigeria has made a significant move, dissolving the board and management of Titan Trust Bank and three other major banks – Union Bank, Polaris Bank, and Keystone Bank, based on a report submitted by the Special Investigator, Jim Obazee, to President Bola Tinubu.
According to Inside Business, the decision to dissolve the boards was made during a meeting involving CBN Governor Yemi Cardoso, Investigator Jim Obazee, and the boards of the four banks, including Titan Trust Bank. The report highlighted that investors of Titan Trust Bank initially avoided meeting with the Special Investigator.
In December 2023, the Special Investigator insisted on the appearance of Titan Trust Bank’s Chairman, Mr. Tunde Lemo, along with Mr. Cornelius Vink and Rahul Savara, to address concerns related to the acquisition of Union Bank of Nigeria.
Despite Lemo’s request for an extension being rejected, the Investigator emphasized the risk of losing the financial institution to the Nigerian government if due process wasn’t proven.
A letter dated December 24, 2023, directed the summoned individuals, including Mr. Lemo, to report to the Department of Force Intelligence in Abuja on December 28, 2023. The letter outlined the need for them to bring required documents and provide additional statements to their earlier submissions.
It had previously been reported that the report of the Special Investigator implicated former CBN governor Godwin Emefiele in the alleged use of proxies to acquire Union Bank. The late Alhaji Ismaila Isa Funtua and Emefiele were also linked to the acquisitions of Keystone Bank and Polaris Bank. The Investigator recommended a government takeover due to the failure of purported shareholders to prove genuine acquisition.
In response, Mr. Lemo rejected the Investigator’s assertions, urging a seven-day period for shareholders to prove ownership with necessary documents. He warned that failure to do so should result in the entities being forfeited to the Federal Government. The situation remains fluid, with legal and procedural complexities surrounding the fate of these financial institutions.
