CBN, Osun Govt Tango Over Appointment Of Director Of Mortgage Bank

By Ayodele Oni

The Osun State Government has insisted on its right to nominate a Director for Living Trust Mortgage Bank as the largest depositor with the bank.

The State rejected the position of the Central Bank of Nigeria, (CBN) on its nominee for the Directorship of the Mortgage Bank, urging the Apex Bank to review its position in the interest of due process, compliance with regulatory acts and shareholder interest.

The Central Bank of Nigeria (CBN) had rejected Governor Ademola Adeleke’s nomination of ex-Finance Commissioner, Wale Bolorunduro, as a Director of Osun State-owned bank, Living Trust Mortgage Bank.

Governor Adeleke had appointed Boluwaduro who served under the administration of Rauf Aregbesola as the Director and Chairman of Living Trust Mortgage Bank in 2024.

Meanwhile, CBN in a letter with reference number OFI/SG2/CON/PLI/018/171 dated March 21st 2025 entitled “Re: Resolutions Reached At The Settlements Helf on August 28, 2024 In Relation to LivingTrust Mortgage Bank PLC” declined the nomination of Boluwaduro.

The letter which was signed by the Director, Other Financial Institutions Supervision Department, Oluwasola Ajewole of the apex monetary authority approved the nomination of ten others who were nominated as Managing, Executive, Non-Executive, Independent Non-Executive Directors.

The letter read in part: “Dr. Adewale Bolorunduro’s approval is declined due to his involvement in the board crisis as ascertained in the investigation carried out by the CBN Examiners as at May 31, 2024.

“The OSSG will be required to replace him with a neutral person to ensure stability on the Board.”

The State Government, in a statement signed by the Governor’s  spokesman, Olawale Rasheed, posited that as a major shareholder and as largest depositor in the said bank, the State has inalienable right to nominate a Director which in this case is Dr Wale Boluwaduro.

While affirming that its nominee has no criminal or professional misconduct, the Government urged the leadership of the Apex Bank to reconsider it so as to protect the State ’s interest as a major shareholder in the said bank.

Osun State Government maintained that failure to grant the state its due rights in the appointment of a Director may lead to a review of its banking relationship with the Living Trust as the depositor with various running costs of the Ministry, Department and Agency in the bank.

The statement narrated that up till 18th of march  there were attempts to evaluate Dr Bolorunduro based on technicality and credibility, noting that it was when that failed that a one sided internal visitation report, written since May 2024 was now used as a basis for the CBN decision.

“The State Government has why the submissions of the government on the visitation were not considered.

“The CBN is invited to note that officials who came only spoke to CitiTrust alone.”