Di Central Bank of Nigeria (CBN) bin sack di boards and management of Keystone, Polaris and Union Banks dis week sake of say dem no follow banking regulations and sake of corporate governance failures.
Di CBN don appoint new management teams to ake ova for all di three private banks.
Na one report and set of recommendations from Jim Obazee, one special investigator wey President Bola Tinubu hire, trigger di move.
Di president bin hire Oga Obazee for July last year to torchlight di CBN plus key Government Business Entities (GBEs).
Im investigation don lead to changes for di banks as na CBN dey regulate dem.
Oga Obazee work na to trace missing funds and analyse public wealth wey individuals and establishments dey manage, according to one letter from President Tinubu, afta Oga Obazee appointment last year.
Wetin go happun to Keystone, Polaris and Union Bank customers’ money?
Di short and simple answer na, nothing. Nothing dey expected to change for pipo wey get deposit accounts for these banks as dem neva sell dem out or declare dem insolvent. Di CBN bin release one statement on 27 December to explade, dem advice customers “to go ahead wit dia banking transactions as usual, as no cause for concern, tok. “We assure di general public and depositors about di safety of dia funds for Nigerian financial institutions. Remember say dis no be di first time wey CBN go sack and appoint new management for private banks for Nigeria. E happun for Skye Bank for 2018, depositors’ money no loss dat time.
And what about financial markets?
None of di banks wey involve dey publicly listed, so di enforced change in leadership no go affect public investments. Recently, dem delist Union Bank, wey don dey operate for Nigeria for ova 100 years – so e no longer dey trade on Nigeria Exchange Group (NGX) – afta Titan Trust Bank acquire am for 2022.
So, why CBN dey step in to make changes?
Issues for di three banks follow from say dem no dey obey financial regulations, corporate governance failure, dem disregard di conditions under which dem take give dem licenses, involve for activities wey pose threat to financial stability, among oda problems. Oga Obazee also issue concerns for im report on top Titan Trust Bank acquisition of Union Bank plus di deal for Keystone Bank wey one separate consortium arrange. Dem sell Union bank wen former Central Bank Governor Godwin Emefiele time for office. President Tinubu bin suspended am on top allegations of fraud.
Why President Tinubu dey bring in financial sector reforms?
President Tinubu bid to stop wetin e call “financial leakages and abuse” for di financial sector na im dey drive these tough reforms. Im team dey find how dem go shore up financial institutions to guard against any collapse plus di impact e fit get on Nigeria’s economy. Di president plan also include liberalisation of di foreign exchange market to help manage di rapid fall for di value of di local currency, di naira, against currencies like di US dollar – by allowing importers and exporters decide dia rates via one formal window. Im advisers, including Wale Edun, di minister of finance, don project say foreign exchange reforms go improve di value of di naira, wey go help bring down di cost of paying off Nigeria rising debt, inflation, and in turn di soaring cost of living. Nigeria public debt bin dey around N 87. 91 trillion (US $114.35 billion) for di third quarter of 2023, according to di National Bureau of Statistics, and according to President Tinubu, without change di kontri no go fit continue to pay off im debts.
