Business

CBN’s Hammer Falls on Union, Polaris, Keytone Banks, Boards Dissolved

Published

1 year ago

January 11, 2024

Eric

The Central Bank of Nigeria has dissolved the boards and managements of Union Bank of Nigeria, Keystone Bank and Polaris Bank over alleged corporate governance infractions and non-compliance with regulatory requirements.

This came barely three weeks after the Special Investigator on the CBN and Related Entities, Jim Obazee, submitted its final report to President Bola Tinubu.

The sacking of the boards of the banks is reportedly part of the implementation of the report of the special investigator.

In a statement by the acting Director, Corporate Communications, CBN, Sidi Hakama, announcing the sacking of the boards of the banks on Wednesday, the central bank said the affected banks’ alleged infractions varied from regulatory non-compliance, corporate governance failure, disregarding of the conditions under which their licences were granted, and involvement in activities that posed a threat to financial stability, among others.

Hence, the apex bank said the dissolution of the boards became necessary due to the non-compliance of the banks and their respective boards with the provisions of the Bank and Other Financial Institutions Act, 2020.

The CBN statement read, “The Central Bank of Nigeria has dissolved the boards and managements of Union Bank, Keystone Bank, and Polaris Bank.

“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 banks’ infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licences were granted, and involvement in activities that pose a threat to financial stability, among others.”

The CBN, however, assured the public of the safety and security of depositors’ funds, stressing that it remained resolute in fulfilling its mandate to uphold a safe, sound and robust financial system in Nigeria.

“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,” it stated.

The dissolution of the boards came days after the Special Investigator of the apex bank, Obazee, claimed that the bank were acquired by Emefiele, using fronts. Obazee advised FG to take over the banks, strengthen and sell them off.

Section 12 of the BOFIA 2020 quoted by the apex bank as the basis for the dissolutions of the board deals with the revocation of a banking licence and the conditions under which it can happen.

The affected portion of the Act read, “12.(1) Notwithstanding the provisions of this Act or any other law, the Governor may, with the approval of the Board and by notice published in the of Federal Government Gazette, or print and electronic media, revoke any licence granted under this Act if a bank-

“(c) fails to fulfil or comply with any condition subject to which the licence was granted

“(f) is involved in a situation, circumstance, action or inaction which constitutes a threat to financial stability;

“(g) fails to comply with any obligation imposed upon it by or under this Act, or the Central Bank of Nigeria Act or any other rule, regulation, guideline or directive made hereunder;

“(h) is, in the opinion of the Bank critically undercapitalised with a capital adequacy ratio below the prudential minimum or such other ratio as the Bank may prescribe.”

Meanwhile, the CBN statement is silent on Titan Trust Bank, even though the bank has reportedly acquired Union Bank.

The special investigator had given Titan Trust Bank and Union Bank investors December 28, 2023 deadline to present themselves before its panel.

However, the lender through their lawyer, Gbolahan Elias QC, SAN, had asked for extension of the meeting to January 7, 2024.

Meanwhile, findings by The PUNCH show that no fewer than 30 board chairmen, managing directors and directors of banks will be affected by the dissolution of the boards. Each of the three banks reportedly have no fewer than 10 board members.

CBN sources also revealed that the apex bank would reconstitute another board before the end of the week.

According to findings, the dissolution is expected to affect Alhaji MK Ahmad, who is the chairman of Polaris Bank; Alhaji Umaru Modibbo, the chairman of Keystone Bank; and the Farouk Gumel, the Chairman of Union Bank.

Titan Trust Bank Limited was established on the 12th of December, 2018 and obtained its national banking license on the 26th of April 2019, to operate as a commercial bank with national authorisation.

Polaris Bank was set by the CBN on September 21, 2018, to offer commercial banking services to the Nigerian public. The bank commenced services on the same day, having purchased the assets, and assumed certain of the liabilities, of the defunct Skye Bank.

Keystone Bank is a full-service commercial bank wholly owned by the Asset Management Corporation of Nigeria and was granted a banking licence on August 5, 2011, by the CBN. Keystone Bank was acquired by a special-purpose vehicle.

Union Bank of Nigeria was established in 1917 and is one of Nigeria’s long-standing and most respected financial institutions, offering a portfolio of banking services to individuals, SMEs, commercial and corporate clients.

Meanwhile, Titan Trust Bank Limited which was established barely three years ago, announced in 2022 its acquisition of the foremost bank.

The bank sought CBN’s no-objection approval in 2021 to its proposed consolidation with Union Bank by acquiring 91.5 per cent of Union Bank’s shares and an eventual merger between both banks.

By 2022, Titan Bank had acquired 93.4 per cent of Union Bank’s shares.

However, there have been concerns in the banking circle whether the government could take over Union Bank which has been duly acquired by private investors led by the TGI Group.

The Punch

Business

Sell Petrol at N770 Per Litre, IPMAN Tells Dangote

Published

3 days ago

June 10, 2025

Eric

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged Dangote Refinery to sell premium motor spirit (petrol) at N770 per litre.

The spokesperson of IPMAN, Chinedu Ukadike, said this on Monday.

Ukadike was reacting to comments by businessman, Aliko Dangote, who said Nigeria’s petrol is less expensive, as his refinery ex-depot price stood at N825 per litre.

However, Ukadike noted that PMS is not cheap owing to the country’s position as a crude oil producer.

According to him, the exchange rate is a major determinant in PMS price in Nigeria, noting a drop in exchange from N1,600 to around N1,200 would bring down the price to below N750 per litre.

“On my part, I don’t feel it’s cheap. I think the petrol will go as low as around N770. That’s my own permutation. I’m not an expert in oil refining. But with what I have gathered — the refinery production costs and the landing at the depot cost, petrol should not be more than N780 or N750, in line with the dollar rate. Now the rate is around N1,600 per dollar; should it appreciate further, PMS from Dangote Refinery should be N750 per litre.

“So, if the dollar can come down to N1,200, I want to tell you that the price of PMS at the pumps will go below N750,” he added.

Dangote, barely a week ago, said Nigeria’s petrol price is 55 percent below the West African average.

He reiterated recently that Nigeria’s petrol price is not expensive.

Nigerians currently buy petrol between N875 and N910 in Lagos and Abuja.

Business

UBA Introduces *919# Advance Top-Up Feature for Instant Access to Customers

Published

3 weeks ago

May 26, 2025

Eric

Africa’s Global Bank, United Bank for Africa (UBA) Plc, has launched a new feature called Advance Top-Up on its USSD banking platform *919#, which is designed to provide instant access to airtime and data for its customers especially when they are out of call credit or disconnected from the internet.

The new feature, which can be accessed through *919*9#, was unveiled at the UBA head office in Marina on Thursday, allowing customers to borrow airtime or data directly from their mobile devices, offering a fast, dependable solution.

UBA’s Group Head, Retail and Digital Banking, Shamsideen Fashola, who spoke during the official launch, described the feature as a timely addition to the bank’s digital offerings and a testament to its customer-first approach.

“At UBA, we are constantly looking for ways to make banking and everyday services more accessible for our customers. With the launch of Advance Top-Up on our USSD platform, *919*9#, we are giving our customers the power to stay connected without interruption, regardless of time, location, or airtime balance,” Shamsideen said.

UBA’s Advance Top-Up which is now live on *919*9#, joins a wide range of services on the platform, which include airtime and data purchases, money transfers to UBA and other banks, account balance checks, card blocking and freezing, online transaction controls, bill payments, and more.
Fashola emphasised the simplicity and convenience of the solution, adding that “You don’t need to download an app or visit a data centre. Just dial *919*9#, follow the prompt, and you’re immediately connected. It’s simple, fast, and reliable.”
The Bank’s Group Head, Marketing and Corporate Communication, Alero Ladipo, added that the feature was developed based on real feedback from customers and their evolving needs.

“Our users asked for a way to stay connected when they have no airtime, and as always, we have come up with a quick solution, right there on their phones, instantly, with no fuss, and no need for internet connectivity. Whether for emergency communications or business continuity, *919*9# puts instant connectivity in every customer’s hands,” she explained.
She explained that only recently, the bank unveiled its newly improved Point of Sale (POS) Terminal as well as the UBA MONI App to redefine the digital payment landscape and empower small and Medium Scale Enterprises across Africa.

United Bank for Africa is one of the largest employers in the financial sector on the African continent, with 25,000 employees group wide and serving over 45 million customers globally. Operating in twenty African countries and the United Kingdom, the United States of America, France and the United Arab Emirates, UBA provides retail, commercial and institutional banking services, leading financial inclusion and implementing cutting edge technology.

Business

UBA Emerges Strongest Nigerian Brand in 2025

Published

3 weeks ago

May 22, 2025

Eric

United Bank for Africa (UBA) has been named the strongest Nigerian brand in the 2025 Brand Finance Banking 500 report, making a remarkable leap from its 9th position in 2024.

With a brand strength score of 92.4 out of 100 and a coveted AAA+ rating, UBA now leads the pack among Nigerian brands, reaffirming its status as a trusted and innovative banking institution.

Brand Finance, a globally recognized independent brand valuation consultancy, highlighted UBA’s outstanding performance across key brand metrics, including familiarity, preference, and consideration within its home market. This performance contributed to UBA’s climb in the rankings, not only as Nigeria’s strongest brand but also as the 13th strongest banking brand globally among 500 evaluated.

“This year’s ranking is no coincidence; it is the result of deliberate planning, strategic investments, and an unwavering focus on customer satisfaction,” said Alero Ladipo, Group Head, Marketing and Corporate Communications at UBA. “We remain committed to adapting to the evolving landscape while consistently delivering exceptional value.”

UBA’s performance was bolstered by its strong customer loyalty and trust. It scored particularly high in price acceptance, outperforming other leading African banks such as Capitec (South Africa) and Equity Bank (Kenya). These scores reflect UBA’s consistent value delivery and competitive pricing, earning it a solid reputation across its operating regions.

The bank’s rise is also attributed to its sustained investment in digital banking, innovation, and customer-centric technologies. Over the past year, UBA has prioritized digital transformation to enhance user experience and deepen customer engagement—an approach that aligns with current trends in Africa’s rapidly evolving financial services landscape.

Operating in 20 African countries and with offices in the United Kingdom, the United States, France, and the United Arab Emirates, UBA serves more than 45 million customers worldwide. With a workforce of 25,000, it remains one of the largest employers in the African financial sector.

UBA’s strong performance in the Brand Finance report underscores a broader strategy focused on brand equity, innovation, and customer satisfaction, positioning it as a leader in shaping the future of banking in Africa and beyond.