Nigeria to buy banks purchased by ousted Central Bank Governor

Nigeria is in the process of acquiring two banks that were allegedly bought at a major discount by the jailed former Central Bank Governor Godwin Emefiele, according to a report by a special investigator appointed by President Bola Tinubu.

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.

The former central banker acquired two banks including 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.

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.

Emefiele, who remains in jail, has denied wrongdoing. His lawyers declined to comment on the investigation’s findings. A government spokesman did not immediately respond to a request seeking comment.