Stakeholders Allege CBN’s Complicity in LivingTrust Mortgage Bank’s Board Crisis, Petition Cardoso 

·      Mortgage institution operating without functional board for nearly a year in breach of law

·      Apex bank doubles down on rejection of Bolorunduro as director, Osun govt kicks

James Emejo in Abuja

Stakeholders have again knocked the Central Bank of Nigeria (CBN) over its alleged complicity in the ongoing board crisis in LivingTrust Mortgage Bank (LTMB) Plc.

The apex bank was said to have shielded Cititrust Holdings Plc, labelled as a ponzi scheme operator by Economic and Financial Crimes Commission (EFCC) to the detriment of the bank and its shareholders.

At the heart of the controversy is the central bank’s rejection of Dr. Wale Bolorunduro, the Osun State Government’s nominee, as a non-executive director on LTMB’s board.

The CBN reaffirmed its objection to the appointment of Bolorunduro in a letter dated April 10, 2025, and signed by Okey-Nwangwu, Chika for the CBN, Director, Other Financial Institutions Supervision Department.

The correspondence, obtained by THISDAY, was titled, “re: Re-presentation of Dr. Adewale Bolorunduro as a Non-executive Director- Request for Clarification” was addressed to LTMB’s Managing Director.

Also, in the letter, the central bank noted that the mortgage bank’s board of directors was required to meet within two weeks from the date of the letter, given that the latter had been without board for almost a year.

The CBN further warned that the failure of the board to meet as directed by the bank would attract severe regulatory sanctions against the directors.

The CBN further clarified that its “decline of the appointment of Dr. Adewale Bolorunduro as a director in Livingtrust Mortgage Bank (LTMB) by the Central Bank of Nigeria (CBN), still holds”.

It added, “Therefore, by virtue of our letter dated March 24, 2025, Dr. Bolorunduro is not a director in LTMB. As advised in our letter, the Osun State Government may wish to forward another nominee to represent its interest on the board to satisfy the number of its board representatives as agreed in the Shareholders’ Protocol Agreement.”

However, stakeholders have argued that the CBN’s latest directives failed to address the underlying issues in LTMB which had resulted in a major board crisis. 

They said despite a Federal High Court ruling forfeiting Cititrust’s 40 per cent stake in LTMB to the federal government, Cititrust has continued to wield significant influence over the mortgage bank.

Stakeholders further contended that the central bank’s opposition to Bolorunduro’s nomination stemmed from fears that his appointment would disrupt Cititrust’s questionable practices.

THISDAY further gathered that further fuelling the controversy, was the CBN’s fact-finding mission, led by Okey-Nwangwu Chika of the OFIDS department.

Stakeholders have criticised the CBN for its failure to act decisively on the various indictments against the management of Cititrust particularly its involvement in ponzi scheme operation, leading to the judgement against the company.

The stakeholders further confided in THISDAY that on the same day that the CBN fact-finding mission concluded, the bank’s managing director, a Cititrust nominee, allegedly made suspicious large cash withdrawal.

Cititrust’s influence over LTMB had culminated in allegations of financial impropriety, including a reported N800 million withdrawals to settle its debts.

Stakeholders argue that the CBN’s refusal to sanction Cititrust appointees or approve credible leadership for the bank was tantamount to complicity.

They question why the apex bank appeared to obstruct accountability, particularly through its rejection of Bolorunduro, a respected former banker and ex-Commissioner for Finance in Osun State while CBN approved individuals with non-performing loans as a non-executive director, including a staff of the bank without relevant experience as an executive director – both appointees of Cititrust Holdings.

“Should a senior manager be appointed an executive director? Are these appointments not in contravention of the CBN guideline on the appointment of directors?, a source queried.

Sources also informed THISDAY that the Osun State Government had expressed frustration, instructing its representatives to boycott board meetings until Bolorunduro’s appointment was ratified.

Stakeholders have reportedly petitioned the CBN Governor, Mr. Olayemi Cardoso, calling for a thorough investigation into Chika’s actions and broader OFIDS department decisions.

A source within the Osun State Governor’s Office expressed frustration, emphasising that the state’s representative would not sit on the same board as individuals linked to fraudulent practices.

The stakeholder, who pleaded anonymity said, “The nexus of Cititrust in the bank has been severed with the final forfeiture of its shares to the federal government.

“Who are they representing now? Why is it so difficult for the CBN’s OFIDS department to exercise sound judgment on this matter? Does the CBN OFIDS want to claim ignorance of the fact that under its supervision, Cititrust, the alleged ponzi scheme operator made away with investors and depositors funds in excess of N10 billion using Core Capital Limited and First Option Microfinance bank as conduits?

“The rot in CBN OFIDS is alarming. We will not align ourselves with individuals whose actions undermine the integrity of the financial sector.”

THISDAY further gathered that LivingTrust did not hold its 2024 Annual General Meeting (AGM) while all accounts from Q2 2024 were published on the NGX without board or statutory audit committee approval.

A stakeholder said, “Another AGM season is around the corner without any sign that it would hold soon.”

Sources laid the blame for the crisis on the hands of CBN OFIDS which has “chosen to turn a blind eye to the looming loss of depositors’ funds by allowing a ponzi schemer run the bank”.

Nonetheless, as the EFCC continues its crackdown on financial mismanagement, stakeholders are urging the CBN to remove Cititrust nominees from the LTMB’s board and approve leaders including Bolorunduro who can restore credibility and confidence.

They also warned that failure to act decisively could spell further financial instability for LTMB and Nigeria’s banking sector at large.

The source said, “The bank was founded by Senator Isiaka Adeleke as the state’s governor in 1993. It’s left to Senator Ademola Adeleke how he wants to preserve his family’s legacy, Osun people’s assets, and most importantly, how his name would be written in the annals of history.”