Fresh gist don burst about wetin cause Central Bank of Nigeria to sack Union Bank former directors and owners for January 2024. Na forensic report wey investigators submit show say financial abuse wey reach billions of dollars almost kill the bank.
According to the report, the former owners and directors dey do plenty sharp practices. Dem dey manipulate financial reports, misappropriate foreign loans, do unethical financial engineering, and withdraw depositors money anyhow. The whole matter don open like market.
One big issue na Titan Trust Bank, the investment vehicle of the former owners wey dem merge with Union Bank. This Titan Trust collect $300 million loan from Africa Export Import Bank, but dem no hedge am. Dem just quietly transfer the debt to Union Bank books.
Even worse, the same $300 million loan dem use am join other money make $490 million to buy Union Bank shares. So dem use bank money buy the bank, but make Union Bank carry the burden of repaying the loan. Na real financial juju.
Because dem no hedge the foreign currency loan, revaluation loss don reach N396 billion. Interest and fees wey dem suppose pay don climb to over N147 billion by third quarter 2025. The figures dey shock person.
Forensic investigators also find say dem dey divert foreign loans wey dem borrow from offshore banks. Instead of lending the money to customers as dem tell the lenders, dem dey reroute am into multi-million dollar swap transactions with CBN.
Dem no even tell CBN the real purpose of the offshore funds. At the same time, dem dey give false reports to the offshore lenders. Na double game dem dey play.
Another finding show say dem withdraw $58 million from Union Bank to cover maturing obligations under that $300 million Afreximbank loan. Total inappropriate withdrawals pass $100 million, wey cause foreign currency liquidity crisis for the bank.
CBN intervention give Union Bank “soft window” to manage operations while new directors take over. Corrective measures don make the bank bounce back small. Dem dey regain market share and redeem maturing obligations.
By third quarter 2025, the bank don dey recover under new management. Many analysts believe say dem go meet the N200 billion new capital requirement to retain national banking licence.
For March 25, 2026, Federal High Court in Lagos deliver judgment about CBN regulatory action on Union Bank. CBN say dem dey obtain and review the Certified True Copy of the judgment.
CBN assure public say Union Bank status no change. The bank still dey under CBN intervention-management. “CBN remains committed to acting in accordance with its mandate and established legal processes,” the banking watchdog talk.
“CBN assures the public that UBN‘s status is unchanged and that it remains fully capable of meeting its obligations to customers, depositors, and all stakeholders,” dem add.
CBN promise to continue regulatory oversight to ensure Union Bank operate safely and maintain public confidence in the financial system.
In another statement about successful recapitalisation of 33 banks, CBN mention say “a limited number of institutions remain subject to ongoing regulatory and judicial processes.” Dem dey address these matters through established supervisory and legal frameworks.
CBN assure say all banks remain fully operational. Customers go continue to get banking services without fear. The legal battle between CBN and investors wey buy Union Bank four years ago don escalate to Nigeria second-highest court.
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