FG to take over Union Bank, Keystone Bank Emefiele acquired

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The Federal Government is taking over the control of two banks that a probe initiated by President Bola Tinubu alleged were bought at a major discount by former Central Bank Governor Godwin Emefiele using proxies.

“We have completed our investigation on this acquisition and we are on the verge of recovering these two banks for the Federal Government,” a report by a special investigator said.

The former central banker allegedly acquired Union Bank of Nigeria and Keystone Bank through several proxies from “ill-gotten wealth” and “without evidence of payment,” according to the report by Jim Obazee submitted to the president and seen by Bloomberg on Saturday. Tinubu has not publicly endorsed the findings.

A preliminary review of the cases showed that Keystone was “acquired for free,” according to the report. “Some persons were used as proxies with the connivance and assistance of Mr. Godwin Emefiele and the CBN to acquire” the two banks, the investigator said.

Keystone Bank did not immediately respond to a request for comment outside of normal business hours. Emefiele’s lawyers declined to comment on the investigation’s findings. A government spokesman did not immediately respond to a request seeking comment.

The acquisition of Union Bank “followed all the laid down rules and regulations,” the Tropical General Investments Group, which led the 2022 takeover through its Titan Trust unit, said in a statement Sunday. The approximately $500 million used to finance the purchase from investors including Atlas Mara Ltd. was “transparent and unimpeachable,” and TGI is “not a proxy,” according to the statement.

“The entire transaction was managed by highly reputed global financial institutions including Rothschild and Citibank. And like most major acquisitions, the process took years to complete,” according to the statement.

Emefiele was suspended shortly after Tinubu took office in late May, and was later arrested and detained on charges including fraud. The Nigerian leader subsequently ordered an investigation into the monetary authority’s operations and instructed it to work with security and anti-corruption agencies.

Emefiele met his bail conditions and was released Saturday, Lagos-based Punch Newspapers reported, citing a correctional spokesperson. Emefiele has denied wrongdoing.