Developments surrounding board nominations at LivingTrust Mortgage Bank Plc have continued to attract scrutiny from industry observers, following reports that nominees put forward by the Osun State Government have twice been declined in circumstances many analysts describe as unusual.
Financial analysts note that shareholders with significant equity stakes traditionally reserve the right to nominate representatives to a company’s board. In the case of LivingTrust Mortgage Bank, the Osun State Government and its local governments are believed to hold a combined shareholding of about 40 percent, despite none of the individual local governments holding up to one percent each.
This has led observers to question why the bank’s management reportedly resisted the nomination of key representatives of the state, including the proposed appointment of Wale Bolorunduro as Chairman/Non-Executive Director in March 2025.
Background to the Dispute
Sources familiar with the matter say the situation dates back to disagreements between the Osun State Government and CitiTrust Holdings Plc in May 2024. The dispute reportedly centred on issues such as the number of directors allotted to each shareholder bloc and concerns over internal control mechanisms within the bank.
Observers also pointed to concerns over the concentration of executive powers and the alleged absence of proper segregation of duties in the bank’s management structure.
Although CitiTrust was previously believed to hold about 60 percent of the bank’s shares, reports indicate that the company has since reduced its stake to roughly 41 percent. Despite this shift, analysts say the management structure remained largely unchanged.
Allegations of Misrepresentation
Some insiders allege that the bank’s management may have supplied incorrect information to the Central Bank of Nigeria, which reportedly influenced the regulator’s decision not to process the nomination of Bolorunduro.
According to sources close to the matter, negotiations aimed at resolving the 2024 dispute out of court included provisions for additional board seats for the Osun State Government and measures to strengthen corporate governance within the bank.
However, the nomination process for the state’s representatives reportedly continued to face obstacles, raising further concerns among observers.
Government Response
Officials within the Osun State Government are said to have maintained a cautious approach to the issue, particularly as the matter entered legal proceedings before the Federal High Court of Nigeria.
The state government reportedly maintained that the board instability cited in regulatory deliberations stemmed from an earlier ex-parte court order obtained during the dispute rather than the actions of any individual nominee.
In a move to strengthen its representation on the board, the state reportedly submitted a fresh nomination in December 2025. In the communication to the bank and regulators, the government withdrew the earlier nomination of Kamaldeen Akinpelu Adekilekun as Independent Non-Executive Director.
The state subsequently nominated an Ijesa-born professional with extensive experience in banking and professional services, who holds an MSc and is a Fellow of the Institute of Chartered Accountants, was also proposed as Acting Chairman of the board.
However, sources say the Central Bank of Nigeria also declined to process the fresh nomination, further deepening concerns among analysts and stakeholders about the repeated rejection of the state’s nominees.
Internal Investigation
Amid the unfolding controversy, the Osun State Government is said to have commenced an internal review of its representatives on the board of LivingTrust Mortgage Bank. Insiders indicate that any representative found to have compromised corporate governance standards could face recall or removal.
The investigation is also believed to be examining allegations of inducements involving financial benefits, assets, or undisclosed allowances.
Regulatory Examination
Meanwhile, officials of the Central Bank of Nigeria recently carried out what sources describe as a special examination of the bank’s operations in February 2026.
Industry observers noted that during the exercise, the bank’s Managing Director was reportedly directed to proceed on compulsory leave while the review continues.
Although the regulatory examination is still ongoing, preliminary findings are said to have highlighted concerns about accounting records, internal controls and the need for clearer segregation of duties within the bank’s organizational structure.
Growing Calls for Stronger Governance
Financial experts say the situation underscores the importance of strong corporate governance and transparent regulatory oversight in financial institutions.
Observers believe the outcome of the ongoing examination by the Central Bank could determine the next phase of reforms within LivingTrust Mortgage Bank and potentially resolve the lingering disagreements between its major shareholders.
By Sam Olaitan, Financial Expert based in Osun State.
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