CBN Probe: Emefiele Accused of Using Proxies in Acquisition of Union and Keystone Banks

A recent report from a special investigation into the Central Bank of Nigeria (CBN) sheds light on allegations against the immediate past governor, Godwin Emefiele. The investigation accuses Emefiele of utilizing ill-gotten wealth to acquire banks through proxies.

The report outlines Emefiele’s alleged use of proxies in the acquisition of Union Bank of Nigeria for Titan Trust Bank Limited and Keystone Bank without providing evidence of payment. As a consequence, the report recommends the reversal of the banks’ sale and their takeover by the Federal Government.

Special Investigator Jim Obazee submitted the report to President Bola Tinubu on December 20, 2023, revealing that Emefiele illegally placed billions of naira in public funds in overseas accounts without proper approval. The ex-CBN governor is currently facing prosecution for a N1.2bn procurement fraud.

The investigation also discloses Emefiele’s purported involvement in approving interest-free loans for cronies and raises concerns about his alleged connection to the acquisition of Union Bank by Titan Trust Bank.

Efforts to verify the corporate status of Titan Trust Bank’s owners, Luxis International DMCC and Magna International DMCC, based in Dubai, reportedly failed. The report claims that this contravenes banking regulations, suggesting these entities should not be allowed to operate or acquire a bank in Nigeria.

Moreover, the investigator contends that a mysterious shareholder, believed to be Emefiele, provided interest-free long-term loans to Luxis and Magna. Requests for proof of funds and other documents from key figures involved in the acquisition remain unfulfilled, with allegations that a political solution is being sought.

The report concludes by recommending the recovery of Titan Trust Bank and Union Bank by the Federal Government, emphasizing the need for a swift sale. Additionally, it outlines alleged irregularities in the acquisition of Keystone Bank by Emefiele through proxies, involving questionable internal loans and bypassing due approval processes.

Emefiele’s counsel, Matthew Bukkaa, SAN, has not responded to requests for comments on the allegations at the time of this report.