Stakeholders Berate Osun Govt, CBN for Allowing Cititrust Holdings Control LivingTrust Mortgage Bank Despite Financial Indictment

James Emejo in Abuja

Stakeholders have expressed reservations that despite a court-ordered final forfeiture of Cititrust Holdings Plc’s shares and assets in LivingTrust Mortgage Bank Plc, over alleged ponzi scheme operation by the former, the Osun State Government and the Central Bank of Nigeria (CBN) have left the mortgage institution in firm control of the embattled company.Cititrust was designated as a Ponzi scheme operator by the Economic and Financial Crimes Commission (EFCC).

However, the company retains de facto control of the bank’s management, raising questions about the priorities of both the state government and the apex bank. Sources said the scandal further exposes systemic negligence by the state and banking industry regulator.

LivingTrust, which was founded in 1993 under the administration of Senator Isiaka Adeleke, was envisioned as a vehicle to provide affordable housing to Osun State citizens.

However, critics alleged that under the current administration of Senator Ademola Adeleke, the bank’s legacy had been sacrificed at the altar of political inaction.

Justice F. N. Ogazi of the Federal High Court sitting in Ikoyi, Lagos, on Tuesday, April 15, 2025, ordered the final forfeiture of 2.04 billion units of shares of Livingtrust Mortgage Bank Plc, formerly known as Omoluabi Mortgage Bank Plc, valued at N6.67 billion.

The court also ordered the final forfeiture of the sum of N42 million and $26.44.

The shares and the funds in the accounts were traced to Cititrust Holdings and its subsidiaries.

The Judge gave the order, following a motion on notice filed by the Lagos Zonal Directorate 2 of the Economic and Financial Crimes Commission (EFCC), Okotie Eboh, Ikoyi, Lagos through its counsel, Ahmad A Usman.

Justice Ogazi had earlier granted the interim forfeiture of the properties and also ordered the publication of the said order in a national newspaper for any interested parties to show cause why they should not be finally forfeited to the victims.

Moving the application for the final forfeiture, Usman said the commission had published Cititrust Holdings and some of its subsidiaries as part of the companies being prosecuted for operating as a ponzi scheme.

He said the properties were found to have been purchased with several investors’ funds.

Consequently, a stakeholder told THISDAY, “Governor Adeleke has failed to take a proactive approach to regain the state’s control of the bank, despite its historical importance and the court’s ruling against Cititrust.

“If the governor truly represents the people of Osun, he should prioritise preserving this legacy rather than fixating on the politics surrounding the sale of shares years ago.”

The source pointed out that Cititrust, through its representatives, dominates the bank’s nine-member board.

Among the six directors aligned with Cititrust are the Managing Director, Olumide Adedeji, and Executive Director, Timothy Gbadeyan.

The source noted that the lopsided representation makes it nearly impossible for the board to act independently of the alleged ponzi scheme operator, a situation the source described as “a recipe for fraud and further mismanagement of depositors’ funds.”

Equally culpable, according to the source, is the CBN, which has turned a blind eye to documented evidence of fraud against Cititrust Holdings.

The stakeholder said despite court rulings and mounting evidence of malfeasance, the CBN has neither intervened to remove Cititrust’s influence from LivingTrust Mortgage Bank nor acted on the Osun State Government’s repeated calls for a comprehensive “fit and proper test” on Cititrust’s leadership.

The stakeholder added, “Why has the CBN allowed a company with such a damning history to continue managing a publicly quoted bank? This is not just regulatory failure; it’s a betrayal of public trust.”

Cititrust Holdings’ troubles began in 2024 when the EFCC accused it of operating a ponzi scheme that funnelled investors’ funds into dubious financial ventures.

Despite these setbacks, Cititrust’s representatives remain firmly entrenched in LivingTrust’s boardroom, with no discernible action from the CBN to enforce the court’s rulings or protect depositors’ funds, sources further noted.

Critics argued that the Osun State Government could have leveraged the court ruling to regain majority control of LivingTrust Mortgage Bank.

By forming alliances with other shareholders and acquiring additional shares, the government could have realigned the bank with its original mission of providing affordable housing, they stressed.

According to them, the Osun State Government could regain control of LivingTrust Mortgage Bank by purchasing additional shares from independent shareholders.

Another stakeholder further revealed that several independent shareholders are willing to sell their stakes, presenting a viable path for the state to increase its shareholding to a majority of at least 51 per cent.

He said, “If the governor and his advisers are sincere, they can approach these shareholders to form an alliance and wrest control of the bank from Cititrust.

“The focus should not be on the politics of past share sales but on preserving the legacy of Osun people and restoring the bank’s original mission of providing affordable housing.”

Stakeholders emphasised that such a move would not only realign the bank with its founding objectives but also secure a lasting legacy for Adeleke, whose administration could take pride in reclaiming a vital state asset.

Continuing, another source who craved anonymity said, “Other states like Lagos and Ogun have used their mortgage institutions to drive development.

“What has LivingTrust achieved under private control? Virtually nothing. Governor Adeleke has an opportunity to reverse this trend and secure his legacy.”

Nonetheless, Adeleke’s earlier letter to the CBN Governor underscored the urgency of the situation.

The letter highlighted Cititrust’s ties to Core Capital Limited, a defunct subsidiary accused of misappropriating over ₦10 billion in depositor funds.

A stakeholder claimed that the central bank had remained unresponsive, leaving the bank’s management in the hands of Cititrust’s appointees, including Olawale Wasiu Oluwo, a former Lagos State Commissioner, and Elizabeth Amvovhe Oghenesivwo, a retired Deputy Director at the CBN’s OFISD.

Although, Oluwo, the Group Managing Director, and Oghenesivwo, a Non-Executive Director in Cititrust Holdings Plc, are not directly managing the bank, they exercise significant influence through their roles at Cititrust Holdings, which continues to control key decisions at the mortgage bank, stakeholders further alleged.

The concerned stakeholders further warned that “Governor Adeleke and the CBN must act now. This is not just about LivingTrust Mortgage Bank; it’s about the future of Osun and the credibility of Nigeria’s financial system. The people deserve better.”

“The continued control of LivingTrust Mortgage Bank by Cititrust Holdings Plc—despite damning evidence of fraud—underscores the urgent need for accountability and decisive action from both the Osun State Government and the CBN.

“Anything less would be a disservice to the people they are sworn to serve.”