BREAKING: CBN sacks boards, management of Union, Keystone, Polaris banks

The development is contained in a statement issued on the evening of Wednesday, January 10, 2023, by CBN Acting Director of Corporate Communications, Sidi Ali Hakama.

According to the apex bank, the affected banks and their respective boards are culpable of breaching some provisions of the Banks and Other Financial Institutions Act, 2020, hence the decision.

It also stated that the infractions committed by the banks varied from regulatory non-compliance, corporate governance failure and involvement in activities that constitute a threat to financial stability.

"This action became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(cl, (D, (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," the statement partly read.

The CBN, however, assured the public of the safety and security of their funds in these banks, stressing that it remains resolute in fulfilling its mandate to uphold a safe and robust financial system.

"The CB 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 statement added.