The Ongoing Crisis at Living Trust Mortgage Bank Plc
Since the intervention on the massive fraud and institutional cover-up affecting Osun State-part-owned mortgage bank, Living Trust Mortgage Bank Plc, the Central Bank of Nigeria (CBN) has taken several steps to address the legal and regulatory violations that have plagued the institution. According to the CBN’s own investigation, the bank, which has a mere N2.5 billion share capital, has accumulated an alarming N11 billion in non-performing loans.
This follow-up piece aims to provide the Nigerian public with detailed insights into the corporate mismanagement occurring within the bank’s boardroom and the exploitation being experienced by its vaults.
A Sudden Regulatory Awakening
About 48 hours after the initial publication titled “Cardoso’s CBN and Osun mortgage bank,” top officials of the apex bank, who had previously turned a blind eye to the bank’s misdeeds, suddenly became active. They issued a summons to the sacked managing director, Adewunmi Adekunle, to appear in Abuja on March 31, 2026, for an interview as part of the CBN’s special examination of the bank.
The summons, obtained by Gibbers, stated, “The Central Bank of Nigeria is in the process of concluding a special examination conducted on Living Trust Mortgage Bank Plc. The examination covers 2020 to 2026. The interview aspect of the examination is scheduled for March 31, 2026 at the Central Bank of Nigeria to make some clarifications before the conclusion of the examination and issuance of a regulatory letter.”
However, just days later, the CBN abruptly canceled the meeting and rescheduled it for April 7, 2026. This delay, while frustrating, is seen by many as better than no action at all.
Controversial Board Appointments
While stakeholders awaited the outcome of the CBN’s self-announced “special examination” of the bank, the apex bank proceeded to confirm Kamaldeen Adekilekun as the substantive chairman of the bank’s board.
For context, in a letter dated April 17th, 2025, the Osun State Government nominated Adekilekun to the board of the bank as an independent director. However, he was fired in another letter dated April 29th of the same year. His nomination lasted just 12 days, raising questions about the political motivations behind such a short tenure.
Despite his removal, the CBN went ahead to name him the interim chairman of the bank’s board, even though he no longer represented the state. The apex bank then concluded this controversial move, as reported by The Nation newspaper in its March 28, 2026 edition. The publication quoted from a letter allegedly issued to the withdrawn nominee, confirming him as the substantive chair of the bank, even though the so-called “special examination” was yet to be completed.
Institutional Challenge to the Governor
In a show of force, the CBN challenged the Osun governor, who had written to withdraw Adekilekun’s nomination. The apex bank reportedly told the governor off with a letter stating, “In our letter with reference number OFI/DOL/CON/PLI/001/213, we drew your attention to the fact that board nomination and appointment, once approved by the CBN, is a tenured appointment as prescribed in Sections 2.4.5 and 2.4.6 of the Code of Corporate Governance for Primary Mortgage Banks in Nigeria.”
The letter also claimed there was nothing in the governor’s communication suggesting that Adekilekun had breached any banking laws or regulations that could disqualify him from holding the position.
Contradictions in CBN Policies
Interestingly, the CBN appears to suffer from selective amnesia when it comes to its own policies. A memo from its leadership, dated February 17, 2025, to all banks, titled “Letter to all banks: compliance with insider-related credit limits,” emphasized that directors with non-performing insider-related facilities must step down immediately from the board.
However, the CBN’s actions at Living Trust Mortgage Bank seem to contradict this stance. The bank has been accused of insider abuse, which has cost Osun and its citizens over N11 billion, with N2.2 billion in custody of political leaders and top government officials.
Regulatory Directives and Ongoing Issues
A memo to the leadership of Living Trust Mortgage Bank, specifically the suspended and reinstated managing director, ordered a series of actions to address the bank’s financial crisis. These included:
- All benefits, allowances, perquisites, reimbursements, and board benefits (excluding sitting allowances) are suspended until CBN certifies substantial loan recovery.
- All new loans or enhancements to insiders, related parties, associates of board members, and obligors, with classified loans as at January 30th, 2026, are suspended until significant recovery is achieved and certified by the CBN.
- The reinstated MD was ordered to submit a detailed recovery plan for the over N11 billion non-performing loans within seven (7) working days.
- Monthly updates and evidence of recoveries must commence from February 28, 2026.
- All erroneous or misleading ledger postings must be corrected. Hidden or inaccessible ledgers, including CitiTrust Holdings Plc loans and account 0000121739 (Living Trust Asset/Properties), must be released to Finance, IT, and Treasury.
- All asset purchases, branch expansion, and investment projects are suspended unless approved by the CBN.
Despite these directives, the CBN has not taken full control of the bank’s management, raising concerns about vested interests. Until the Cardoso team takes decisive action, the situation will continue to unfold, and further details will be published.
Conclusion
The Adeleke leadership is not without blemish in this saga. There are documents showing poor judgment and administrative flip-flop, coupled with instances where local politics overshadowed sound reasoning. However, the CBN remains the primary culprit, and until it does right by the people of Osun, the scrutiny will not cease.
For Governor Jackson Adeleke, if he truly wants to honor the memory of his big brother, who founded the bank as the first executive governor of Osun State, he should consider divesting the state’s shares in the bank and starting a new mortgage bank for his people. Perhaps the CBN will still claim Osun cannot divest, just like it has taken away the power of the state to nominate directors, despite being a major shareholder.
