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Report On The Sack Of Bank Boards

Report On The Sack Of Bank Boards

On Wednesday night, the Central Bank of Nigeria sacked the entire board of four banks for grievous infringements on financial laws.

It said 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 posed a threat to financial stability, among others.

This has no doubt caused lots of reactions from Nigerians who are already disappointed with the way and manner the ordinary Nigerians have been shortchanged in one way or the other by the banks.

Less than twenty fours hours after the apex bank utilized its sledge hammer against some banks, the country has been awash with reactions over the matter.

The apex bank, in the exercise of its regulatory powers, said the dissolution of the boards of Union , Titan and Key stone banks became necessary due to the non-compliance of the banks and their respective boards with the provisions of the Financial Institutions Act, 2020.

Other reasons that may have informed the apex bank’s decision was lack of due process,  use of proceed of fraud and employment of proxies in the acquisition processes of the sold banks which was perfected by the Godwin Emefiele’s cbn and revealed by the Jim Osayande Obazee led probe panel.

Although the report of the obazee led panel is fully made public, many think that cbn may have found those bank boards guilty of the allegations.

Is it enough to dismiss the board and its members without due punishment

What should the government do to avoid the many financial and corrupt practices that are now the order of the day in Nigeria's financial system?

The move no doubt has received wide commendation but analysts want the government to be decisive and not pay lip service to issues of corruption in the banking sector.

They also want those arrested after investigation be to made to face the law, that way corruption in the system will abate.

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