DSS: We Didn’t Arrest Any CBN Official

The Department of State Services (DSS) has denied arresting any past or present official of the Central Bank of Nigeria (CBN) within the last two days.

The agency issued a disclaimer via its X handle on Thursday night apparently in reaction to the news making the round that it has arrested an official of the CBN.

An unconfirmed report circulating on social media claimed that the Deputy Governor of the CBN in charge of Financial System Stability, Aisha Ahmad, was arrested and detained by the Department of State Services over the alleged fraudulent acquisition of shares in Polaris Bank, Titan Bank/Union Bank.

The report further claimed that the arrest was also in connection with the ongoing investigation into how Titan Bank raised the sum of $300 million used in completing the acquisition of Union Bank.

However, the secret police in a terse statement said: “The DSS did not in the last 48 hours, arrest any former or present official of the CBN.”

Recall that the CBN on Wednesday, 10 January 2024, announced the dissolution of the boards and management of Polaris Bank, Union Bank and Keystone Bank, citing non-compliance with provisions of the Banks and other Financial Institutions Act 2020.

The CBN’s statement signed by Sadi Ali Hakama said: “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 Bank’s infractions vary from regulatory non-compliance, corporate governance failure, disregarding the conditions under which their licenses were granted, and involvement in activities that pose a threat to financial stability, among others.”

The apex subsequently announced the appointment of new chief executive officers of the three banks, indicating that the appointment takes immediate effect.

The action followed the outcome of the Special CBN Investigator, Jim Obazee’s report which alleged that how Union Bank of Nigeria was acquired by Titan Trust Bank did not follow due process.

Obazee alleged that the embattled former CBN Governor, Godwin Emefiele, used some individuals as proxies to set up Titan Trust Bank (TTB) and acquire Union Bank of Nigeria Plc (UBN).

The investigator had subsequently invited the CEO of TTB, Tunde Lemo, for questioning regarding the acquisition.

TTB, however, issued a statement denying any wrongdoing in the acquisition of Union Bank.