Board set to sack Somefun as CEO over Unity Bank’s dwindling fortunes

DAILY RIPPLES has gathered reliably that the board of Unity Bank Plc is said to sack the bank’s Managing Director, Mrs. Oluwatomi Somefun.

The move might not be unconnected to perceived dwindling fortunes of the financial institution, which sources within say have continued to sink further, no thanks to the less than par leadership style of Somefun.

Inside sources disclosed that board is said to have lost confidence in Somefun as she has failed to turn around the fortunes of the bank.

The bank’s board is also said to be in talks with a director in one of the first-tier banks in Nigeria to replace Somefun who has led the bank into many troubles.

Another source of discord between her and the board seems to be the less than rosy relationship between her and members of staff of the bank, which is giving board members some worries.

Recently, the National Industrial Court of Nigeria recently commenced committal proceedings against her for flouting orders made by the court to reinstate 25 ex-staff of the bank.

The Lagos division of the court had given a monetary judgment on July 3, 2019.

Also, as part of its many troubles is the personal data breach suit filed by the Digital Rights Lawyers Initiative against the lender following the unauthorized exposure of over 53,000 job seekers on the bank’s job portal.

In Suit No. FHC/AB/CS/85/2020, filed few months ago, the applicant sought: “A declaration that the Respondent’s privacy policy on its website – “https://www.unitybankng.com/privacy” violates the provision of regulation 2.5 of the Nigeria Data Protection Regulation 2019.

Also recall, an online financial newspaper had reported in late 2020 that the Central Bank of Nigeria (CBN) is considering revoking the operating license of Unity Bank Plc over its failure to meet regulatory benchmarks.

The website quoting inside sources said the regulator has been so worried about the poor performance of the bank for some years now which has made it unable to meet key regulatory requirements.

The CBN, it was gathered, may be left with no option than to withdraw the bank’s license and nationalize it to safeguard depositors’ funds as its share capital has continued to run into the negative territory.

In April 2020, Unity Bank’s auditors, KPMG, raised a red flag over its ability to continue operations because its liabilities exceeded its assets, resulting in a negative capital.

Agusto & Co. had also assigned a “Bb-” rating to the bank, meaning that it is junk, which is below investment grade.

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