In a significant move, the Federal Government is poised to dismiss the boards of Union Bank Limited and Titan Trust Bank Limited next week, signaling its intent to effectively take over these two financial institutions, according to a source familiar with the matter.
This action follows the recommendations of Special Investigator Jim Obazee, appointed by President Bola Tinubu in July 2023 to scrutinize the activities of the Central Bank of Nigeria (CBN) and other pertinent establishments.
In his report, Obazee disclosed that the acquisition of Union Bank by Titan Bank lacked transparency, prompting his recommendation for the Federal government to take over and forfeit both financial institutions.
“We were able to secure some documents, and the investigation reports will lead to the forfeiture of the two banks to the Federal Government. We have completed our investigation on this acquisition and have also held meetings with the relevant parties, except for Mr. Cornelis Vink (currently hospitalized in Switzerland). Otherwise, we are on the verge of recovering these two banks for the Federal Government,” stated the investigator.
The report does not clarify whether the investigator’s recommendation provides legal grounds to enforce share forfeiture without a court ruling, leaving questions about the legal scope of the investigation’s impact on the matter unanswered.
The move to sack the boards and take control of Union Bank and Titan Trust Bank raises concerns about the potential legal implications and the broader ramifications for the financial sector.
