The Central Bank of Nigeria (CBN) has declined the nomination of Dr. Adewale Bolorunduro, a former Commissioner for Finance in Osun State, as a Director of the state-owned Living Trust Mortgage Bank. Governor Ademola Adeleke had appointed Bolorunduro, who served under former Governor Rauf Aregbesola, as Director and Chairman of the bank in 2024.
In a letter dated March 21, 2025, with reference number OFI/SG2/CON/PLI/018/171, the CBN addressed the “Resolutions Reached At The Settlements Held on August 28, 2024 In Relation to Living Trust Mortgage Bank PLC.” The letter, signed by Oluwasola Ajewole, Director of the Other Financial Institutions Supervision Department, approved the appointments of ten other nominees for various director positions within the bank but specifically declined Bolorunduro’s nomination.
The letter stated, “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 CBN advised the Osun State Government to nominate a neutral individual to ensure stability on the bank’s board.
Additionally, the CBN requested further documentation for two appointees. Mr. Afolabi Olanrewaju Olatunji is required to provide a letter of undertaking to address the non-performing loan with Prudential Mortgage Bank, while Mr. Ogungbile Adeola Olusola must submit an executed Code of Conduct form for Directors of Other Financial Institutions. The CBN emphasized that failure to provide these documents within three months would nullify their appointments.
The letter also noted the tenure limitations for existing directors. Mrs. Olaitan, who has served on the board since 2018, has four years remaining as an Executive Director, and Mr. Michael Omolaja, who served from 2016 to 2023, has one year left as an Independent Non-Executive Director, in accordance with the Revised Guidelines for Mortgage Banks in Nigeria.
This development underscores the CBN’s commitment to ensuring that individuals appointed to leadership positions within financial institutions meet the necessary standards and do not have histories that could compromise the stability and integrity of these institutions. The Osun State Government is expected to act promptly to nominate a suitable replacement for Bolorunduro to facilitate the smooth operation of Living Trust Mortgage Bank.
