E-Financial
CBN’s Special Investigator, Jim Obazee Accuses Emefiele of Using Proxies to Buy Banks
Jim Obazee, the special investigator appointed by President Bola to investigate the activities of former Central Bank Governor, Godwin Emefiele, has revealed in his report that the former apex bank chief used proxies to acquire some banks in the country.
Late Alhaji Ismaila Isa Funtua, an ally of former President Muhammadu Buhari, was also fingered alongside Emefiele in the acquisition of Keystone Bank and Polaris Bank.
According to Punch, this is coming on the heels of findings by the investigator that Emefiele illegally lodged billions of naira in foreign currencies in no fewer than 593 bank accounts in the United States, United Kingdom, and China without the approval of the apex bank’s board of directors and the CBN Investment Committee.
Obazee found out that the ex-CBN governor lodged £543,482,213 in fixed deposits in UK banks alone without authorisation. Emefiele, who is currently in the Kuje Custodial Centre, is being prosecuted for N1.2bn procurement fraud.
Obazee, who was appointed special investigator in July, submitted his final report tagged, ‘Report of the Special Investigation on CBN and Related Entities (Chargeable offences)’ to the President on Wednesday. He had earlier submitted an interim report on the probe of the CBN and related entities on December 9.
In his letters to the President, Obazee said he had completed his investigation into the illegal acquisition of Union Bank by Titan Banka nd was on the verge of recovering the two banks for the Federal Government.
He stated in his letter to the President, “When we carried out the investigation, we discovered that some persons were used as proxies by Mr Godwin Emefiele to set up Titan Trust Bank and acquire Union Bank therefrom, all from ill-gotten wealth.
“We were able to secure some documents and 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, who is currently hospitalised in Switzerland.
“Otherwise, we are on the verge of recovering these two banks for the Federal Government.”
During the probe into the UBN acquisition supervised by the Emefiele-led CBN, Obazee explained that he requested the apex bank to furnish him with the details of the deal.
Findings indicate Titan Trust Bank sought the CBN’s no-objection to its proposed consolidation with UBN, excluding its United Kingdom operations via a letter dated October 25, 2021.
In the letter, TTB stated that the consolidation was being contemplated in four phases via acquisition of 91.5 per cent of the issued shares of UBN; mandatory tender offer for the remaining UBN shares; buyout of any share that were not voluntarily sold to TTB on the MTO; and merger of TTB and UBN with UBN as the surviving entity.
The TTB letter also stated that the consolidation was to be funded via a combination of debt and equity. The CBN in a letter dated March 9, 2022 granted no-objection to TTB’s requests to obtain a $300m facility from Afrexim Bank as well as capital injection of $175m from two existing shareholders of TTB, Luxis International DMCC and Magna International DMCC.
The TTB, via a letter dated June 3, 2022, informed the CBN that it made the payment of the purchase consideration to the selling shareholders on June 1, 2022, and thus completed the acquisition of 93.41 per cent of the issued shares of UBN.
According to the investigator, the TTB sought approval for the mandatory takeover of the remaining 6.59 per cent of UBN shares vide a letter dated October 14, 2022.
The MTO was reportedly triggered by the successful acquisition of 93.41 per cent of the UBN shares and TTB was granted a no-objection to acquire the remaining 6.59 per cent shares through a letter dated October 24, 2022.
On November 2, 2022, the TTB officially launched the MTO, offering to acquire the remaining shares and the MTO concluded with the TTB purchasing an additional 0.64 per cent of the issued shares of UBN, thus bringing its total shareholding to 94.05 per cent.
To approve a scheme arrangement between itself and the holders of the balance of 5.95 per cent shares not yet bought by the TTB following an order of the Federal High Court, the UBN convened a meeting on June 13, 2023. This was expected to result in the transfer of the outstanding UBN shares to TTB.
The investigation report noted, “The process to acquire the remainder of 5.95 per cent of the issued share capital of UBN by TTB is ongoing through a court-ordered scheme of arrangement between itself and the holders of the balance of 5.95 per cent.
“TTB stated that its ultimate objective is to acquire 100 per cent of the total outstanding shares of UBN.” Further investigation showed that TTB is owned by Luxis International DMCC and Magna International DMCC, said to be based in Dubai, United Arab Emirates.
The two firms were said to be owned by Vink Corporation Middle East FZC, which is controlled by Cornelis Vink. However, efforts to verify the corporate status of Luxis and Magna in Dubai failed as they did not have a physical presence in the Arab country as claimed.
“This contravenes Section 3(5) of the Banks and Other Financial Institutions Act, 2020. Accordingly, they are not supposed to be allowed to operate or acquire a bank in Nigeria,” the report declared.
It stated, “The special investigator probed the activities of the TTB and discovered that there is a mysterious shareholder who has given interest-free long-term loan to (with no fixed repayment schedule) to the entities mentioned above (Luxis International DMCC and Magna International DMCC). This mysterious shareholder is believed to be Mr Godwin Emefiele.
“The special investigator requested the supposed owner of TTB and ultimate acquirer of Union Bank of Nigeria, Mr Cornelis Vink, to submit proof of funds, internationally verifiable bank statements (from incorporation of the entities to date), and the shareholder that gave interest-free loans to the two entities separately, names, nationality, source of fund, proof of fund, bank statements) as well as relationship of the entities with Mr Andrew Ojei, Jerome Shogbon, Rahul Savara, Winston Odeh, Adaeze Udensi, Ekene Louis, Godwin Emefiele, Macombe Omoile, Tunde Lemo, Mudassir Amry, Faruk Gumel, Oluremi Oni, and Vink Corporation Middle East FCZ together with the details of the shareholder that also gave Vink Corporation interest-free loan and your good self.
“A letter came from Union Bank of Nigeria claiming he is sick and can only come to meet with the special investigator or submit the documents requested when he gets well by the end of September 2023. As of today, December 20, 2023, we are yet to hear from him nor receive any of the requested documents.
“We are informed that they want to seek a political solution. The special investigator is of the view that the TTB and UBN be recovered by the Federal Government, strengthened and sold in the nearest future.
“A meeting was initially scheduled for December 5, 2023, with the Board of Directors of the two banks by the CBN Deputy Governor for Financial System Stability to close out discussions on this matter. The meeting has been postponed.”
On the alleged acquisition of Keystone by Emefiele through proxies, the investigator explained that sometime in 2017, the Asset Management Corporation of Nigeria moved N20bn to Heritage Bank and on the back of that, the bank granted N25bn loan to the promoters of Isa Funtua/Emefiele Group’s acquisition vehicle to buy Keystone Bank and the loan was further backed by the shares of the bank.
Upon acquisition, Keystone reportedly returned the N20bn to Heritage Bank as placement and Heritage thereafter repaid AMCON from the cash flow so created.
The report read in part, “When the loan granted by Heritage Bank to Isa Funtua/Emefiele’s acquisition vehicles matured with outstanding balance, the MD of Heritage Bank, which was then in serious liquidity crisis, called for repayment. Unfortunately for the shareholders of the bank, the Funtua/Emefiele group could not repay.
“Consequently, the MD of Heritage Bank got his lawyers to write to the bank on two occasions threatening to take over Keystone Bank based on the shares they had pledged as security.
“After much pressure from him, Keystone Bank created internal loans of about N50bn between June and October 2019 and moved the proceeds to repay Heritage Bank on behalf of the shareholders.
“Before this, Godwin Emefiele as governor of the central bank had mounted pressure on the bank for these loans to be created within Keystone Bank on behalf of their group.
“However, the MD of the bank at that time resigned due to the consistent pressure from him and the shareholders to comply. The next in command, the deputy managing director, who subsequently became the acting MD, also resigned within three months for the same reason.
“Thereafter, an executive director, who then became the acting MD, took his vacation to avoid pressure for the approval of the loans. Unfortunately, the GM, Risk Management (Mr Tijjani Aliyu) and GM, Corporate Banking (Mr Niran Olayinka) approved the loans (about N50bn) while he was away and moved the proceeds to Heritage Bank for the repayment of the shareholders’ loans. The above loans, which are not being repaid currently, have total outstanding balance in excess of N64bn.”
The investigation also found that the credit approval memoranda were passed by the two GMs to the bank’s chairman, Alhaji Umaru Modibbo, who gave the final approval for disbursement, adding that the process bypassed the Management Credit Committee, Board Credit Committee and full board before disbursement.
“As a reward, the two GMs were immediately appointed executive directors, while one of them became the MD over the acting MD, who used to supervise him. The internal loans so created are not being serviced and have gone bad,” Obazee submitted.
The investigator informed the President that he had commenced the interrogation of the AMCON managing director on the acquisition of both Polaris and Keystone banks besides Arik Air, Aero Contractors and financial reporting by AMCON.
The AMCON MD was said to have told the investigator that “the N898bn liquidity support into Polaris Bank is not part of the SPA, which it should” and that “the N50bn paid for the transaction by the preferred bidder is not received by AMCON.”
Obazee said a preliminary review of the case showed that “Keystone was acquired for free as did Polaris Bank and the special investigator should liaise with the CBN to recover these two banks to the Federal Government of Nigeria.”
The Central Bank of Nigeria has directed banks, fintech firms, and other payment service providers to store payment transaction data generated within the country on local servers from January 1, 2027, as part of new measures to strengthen oversight of the fast-growing digital payments ecosystem.
The directive was contained in a circular issued by the Payments System Supervision Department of the CBN on Monday and addressed to deposit money banks, microfinance banks, mobile money operators, switching and processing companies, payment terminal service providers, payment solution service providers, super agents and other licensed operators in the payments industry.
The circular, signed by the Director of the Payments System Supervision Department, Rakiya Yusuf, also introduced new market structure rules, beneficial ownership disclosure requirements and systemic oversight measures for payment service operators.
According to the apex bank, the reforms became necessary following the rapid expansion of electronic payments and digital financial services across the country.
The CBN said it had observed “significant structural developments within the Nigerian Payments ecosystem, characterised by rapid growth in electronic payments, increasing adoption of digital financial services, and the emergence of operators with substantial market presence across key payment activities.”
It noted that while the growth had improved innovation, efficiency and financial inclusion, it had also created concerns around market concentration, operational dependence, ownership transparency and the storage of critical payments data.
To address these concerns, the regulator ordered all financial institutions facilitating payments in Nigeria to ensure that transaction data generated within the country are stored domestically.
The circular stated, “All Financial Institutions and participants facilitating payments within Nigeria shall ensure that payments transaction data generated within Nigeria are stored and managed in Nigeria in accordance with data protection laws and regulations applicable in Nigeria.”
It added that “all affected Financial Institutions shall fully comply with this requirement effective January 1, 2027.”
The move is expected to strengthen regulatory oversight, enhance data sovereignty and ensure that sensitive payment information remains within Nigeria’s jurisdiction.
It also aligns with broader efforts by regulators globally to localise critical financial data and reduce reliance on offshore infrastructure.
Beyond data localisation, the CBN ordered banks, payment service providers and other financial institutions with digital payment operations to disclose the ultimate beneficial ownership of significant shareholders.
According to the circular, institutions must maintain accurate and up-to-date records of their ultimate beneficial owners and make such information available to the apex bank upon request.
The regulator said the disclosure requirement must comply with existing anti-money laundering, counter-terrorism financing and counter-proliferation financing regulations.
The directive builds on previous CBN efforts to strengthen beneficial ownership transparency as part of wider measures to combat money laundering and illicit financial flows in the financial system.
The central bank also introduced fresh competition rules aimed at limiting excessive market dominance in the payments industry.
Under the new framework, any financial institution that controls more than 25 per cent of the card-issuing market in a rolling 12-month period will not be allowed to hold more than 15 per cent of the merchant-acquiring market during the same period.
Similarly, operators with more than 25 per cent market share in merchant acquiring activities will be restricted to a maximum of 15 per cent market share in card issuing activities.
Merchant acquiring refers to processing card payments on behalf of merchants, while card issuing involves providing payment cards to customers.
The CBN said all regulated entities would be required to submit monthly market share returns based on prescribed templates and timelines.
It further directed affected institutions to take the necessary measures to achieve full compliance with the market structure requirements by December 31, 2026.
The apex bank said the new measures were designed to “improve transparency through beneficial ownership disclosure, address concentration risk, promote a fair, competitive, and resilient payments ecosystem.”
According to the regulator, the reforms are also intended to “safeguard the integrity of the Nigerian payments system and ensure the localisation of payments transaction data within Nigeria.”
The CBN warned that it would closely monitor compliance and impose sanctions where necessary.
“The CBN shall monitor compliance with the provisions of this Circular and may, where necessary, impose supervisory sanctions in accordance with applicable laws, regulations, and guidelines,” the circular stated.
The latest directive comes amid a rapid expansion of Nigeria’s digital payments industry, with electronic transactions reaching record levels and regulators increasing oversight of banks, fintech firms and other payment operators to address operational, cybersecurity and systemic risks.
Foreign exchange markets are entering a phase where how traders are positioned may matter as much as the economic fundamentals driving those positions, according to a new market analysis from JustMarkets.
JustMarkets
The brokerage’s latest commentary points to a build-up in trades tied to the US dollar and to carry strategies, bets that exploit interest rate differentials between currencies, as a growing source of risk heading into the coming weeks.
The dollar has been supported by elevated US interest rates and pushed-back expectations for rate cuts, conditions that have encouraged more traders to pile into similar carry positions. While the macro case behind these trades remains intact for now, JustMarkets cautions that when positioning becomes this lopsided, even sound trades can become vulnerable to sudden, sharp reversals.
A “crowded trade” isn’t inherently a red flag, the analysis notes, it can simply reflect a widely shared, fundamentally sound view. The danger emerges when too many participants are leaning the same way and conditions shift: traders rush to exit together, stop-loss orders cluster around similar price levels, and liquidity can evaporate just as prices move fastest. The combination, JustMarkets says, often produces a cascade effect that accelerates price moves in the opposite direction.
Notably, the analysis argues that reversals in crowded trades rarely require a major shock. Instead, minor developments, a softer-than-expected economic print, a subtle shift in central bank language, or fresh geopolitical headlines, can be enough to make traders question whether their positions still make sense. Once that doubt spreads, unwinding tends to happen in unison, amplifying both the speed and scale of the move.
Carry trades are singled out as particularly exposed in this environment. They tend to perform well during calmer periods but can unravel quickly once markets shift from “risk-on” to “risk-off,” triggering rapid liquidations and sharp corrections in carry positions.
JustMarkets argues that the current backdrop, marked by elevated geopolitical tension, persistent inflation, and lingering uncertainty over the path of monetary policy, leaves markets more exposed to positioning-driven swings than in previous cycles. Trader sentiment, the analysis suggests, is playing an outsized role alongside the usual response to economic data and headlines.
With crowded conditions raising the odds of fast, disorderly moves, the quality of trade execution becomes more consequential, the analysis notes, citing slippage, wider spreads, and order delays as factors that can compound losses during volatile swings.
On managing risk, JustMarkets’ analysts recommend that traders: Avoid overexposure to the dominant macro narrative of the moment, pay closer attention to positioning and sentiment indicators, maintain disciplined stop-loss orders ahead of potential downturn and pPrepare for higher volatility and faster price action than usual.
Markets become crowded periodically, and when they do, the risk of a sharp, sudden reversal rises with them. For now, JustMarkets’ broader message to traders is one of caution: with positioning levels elevated across USD and carry trades, vigilance on execution and risk management will likely matter more than usual in the weeks ahead.
Association of Corporate Communication and Marketing Professionals in Banks (ACAMB) on the 11th of June kicked off activities, marking its 30th anniversary celebration with a tree-planting exercise on Providence Street, Lekki Phase 1, Lagos.
L-R: President, Association of Corporate Communication and Marketing Professionals in Banks (ACAMB), Jide Sipe; Representative of Wema Bank, Precious Akpan; Vice President 2, Morolake Onifade, Representative of Alpha Morgan, Tolu Onipede and General Secretary, ACAMB, Olugbenga Owotoomo during a tree planting initiative, put together to flag-off the 30th anniversary celebration of ACAMB, held at Providence Street, Lekki Phase 1, Lagos
Held in Lagos recently, the initiative, the initiative was part of the associations efforts aimed at promoting environmental sustainability while commemorating 3 decades of advancing corporate communications and marketing excellence within Nigeria’s banking industry.
The well attended exercise, led by President of ACAMB, Jide Sipe and the Registrar/Chief Executive Officer of the Chartered Institute of Bankers of Nigeria (CIBN), Akin Morakinyo, in the company of Vice President 1, Chinwe Bode Akinwande; Vice President 2, Morolake Onifade; Executive committee Members, both past and present, alongside, Group Heads of marketing and Corporate communications, and Heads of Departments across banks waded through the heavy downpour, planting trees in the rain in a display of commitment that set the tone for the milestone celebration.
A tree was planted, by representatives of banks in the country and named after each bank.
ACAMB President, Jide Sipe, who welcomed members and dignitaries to the exercise, reaffirmed the Association’s commitment to the reputation and growth of the banking industry.
“Thirty years ago, a handful of professionals chose to put the reputation of the banking industry above rivalry. We are standing today on the foundation they laid, and every tree we plant here is a promise to keep building and most importantly deepen credibility by proactively addressing issues which directly improve our collective brand image and customer loyalty,” he said.
“What ACAMB is doing also coincides with our 30th anniversary celebration. One of the best ways to celebrate this milestone is to contribute to the environment by the planting of trees that will on the long run be environmentally and economically impactful to the society at large.
“We are planting trees in honour of banks in the country and each of the trees will be named after them.
Outlining the anniversary programme, Sipe announced a series of activities running through September 2026, including a Golf and Networking Experience on June 27, 2026, at Ikoyi Club, Lagos, with the celebration culminating in a grand Gala Night on September 30, 2026.
“We are marking three decades the way they should be marked, with substance and with joy,” he said.
The Registrar and Chief Executive Officer of the Chartered Institute of Bankers of Nigeria (CIBN), Akin Morakinyo, HCIB, unveiled the Association’s 30th anniversary logo and commended ACAMB for its longstanding collaboration with the Institute.
“This anniversary is dedicated to the glory of God and the service of humanity,” he said. “I charge every member to hold firmly to professionalism and ethics in the discharge of their duties.”
A founding member of the association, Dr Nkechi Ali Balogun, offered a historical reflection on its formation. ACAMB was established in 1996 by representatives of five institutions: IBWA (later Afribank), Union Bank, NEXIM Bank, First Bank, and the Central Bank of Nigeria (CBN).
“The late Mr. Dangogo of the CBN gathered us at Kuramo Lodge with a simple idea, that banks could compete and still respect one another,” she said.
Member of the Association’s Board of Trustees, Ogie Eboigbe, traced the formation to concerns over banks de-marketing one another.
“Banks were winning customers by tearing down their rivals, and it was hurting public confidence in all of us,” he explained.
The tree-planting exercise reflects ACAMB’s commitment to environmental sustainability and stands as a fitting symbol of the Association’s growth and impact over the past three decades.
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