Wetin dey happen for Union Bank of Nigeria don turn gist wey shock everybody. Central Bank of Nigeria (CBN) just show us say na serious matter dey ground. January 2024, CBN just waka enter Union Bank, chase all the former owners and directors commot, put new people for board. Na wetin cause am? Forensic report don open our eye.
See wetin dey inside that report. Na trillions of naira wey vanish for inside bank. The former owners and directors dem dey do financial reporting wey no correct at all. Dem dey falsify report, dey play with foreign loans anyhow, dey do unethical financial engineering. Even customer money wey dem suppose protect, dem dey withdraw am without permission.
Na Titan Trust Bank be the main wahala. That bank na investment vehicle for the former owners. Dem merge am with Union Bank. But wetin we no know be say Titan Trust carry one big $300 million loan from African Export-Import Bank (Afreximbank). That loan no get any hedge. Na dem just dump am for Union Bank head.
More shocking thing be say, that same $300 million loan dem add am make $490 million, use am buy Union Bank shares. Na bank self dem use pay back the loan. Meaning say na depositors money dem use finance the bank takeover. No be small thing o.
By third quarter of 2025, revaluation losses don reach N396 billion. Interest and fees don pass N147 billion. The former directors dey enjoy ownership benefits, but na bank and Nigerian taxpayer dey carry the foreign-currency burden. Heavy load.
Forensic teams still discover another thing. Offshore loans wey dem borrow to lend customers, dem divert am go do multi-million dollar swap deals with CBN self. The regulator no know wetin dey happen. Offshore lenders dey receive false reports. Total deception.
Dem still raid Union Bank liquidity. One time, dem just yank $58 million from bank coffers to settle maturing obligations for that secret Afreximbank loan. Total inappropriate withdrawals pass $100 million. That one cause full-blown foreign-currency liquidity crisis. Customer money don turn private piggy bank.
CBN intervention na the only thing wey save Union Bank from total collapse. If no be CBN, that bank for don scatter finish. Under new board and management, Union Bank don begin fight back. Market share dey rebound, dem dey meet maturing obligations on time. The bank dey on track to raise fresh N200 billion capital wey dem need to keep national banking licence.
But court matter still dey. March 25, 2026, Federal High Court for Lagos deliver judgment on CBN actions. Justice Chukwujekwu Aneke set aside all actions taken by CBN-appointed board. Court order say make dem restore former leadership immediately. That one include Farouk Mohammed Gumel and the management team.
CBN respond say dem dey review the Certified True Copy. But dem stress say Union Bank status “has not changed.” The lender remain under CBN oversight. CBN talk say “a limited number of institutions remain subject to ongoing regulatory and judicial processes.” But dem assure public say every bank, including those under intervention, remain fully operational. Customers fit bank with confidence.
The Union Bank saga no finish yet. But the forensic report don open our eye to one of the most audacious financial scandals for recent Nigerian banking history. Na why decisive regulatory action, no matter how controversial, be the only way to protect depositors and the system itself.
Analysts dey talk say if dem establish these arrangements, na breach of standard corporate governance and banking regulations. But none of these allegations don enter court for criminal conviction. Efforts to get comments from former directors and owners, plus Titan Trust Bank, no yield result. Afreximbank self no talk anything about the claims.
CBN intervention na to prevent potential systemic risks to banking sector. The corrective measures don make Union Bank bounce back. By third quarter 2025, bank don dey on path to recovery. Many analysts expect say dem go meet that N200 billion new capital requirement.
CBN statement dey clear. Dem talk say “The 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. The CBN will continue to provide the necessary regulatory oversight to ensure Union Bank operates in a safe, sound, and stable manner.”
Na fresh details emerge on multi-trillion naira financial mismanagement wey lead to January 2024 sack of former directors and owners. Investigators report after forensic audit indicate say apex bank intervention base on financial abuses running into several billions of dollars. That one threaten bank solvency.
Extracts from forensic report show say former owners and directors dey engage in financial reporting manipulation, fraudulent misappropriation of foreign loans, unethical financial engineering and inappropriate withdrawal of depositors funds. Titan Trust Bank, the investment vehicle, get unhedged loan of $300 million from Afreximbank. This undisclosed material item dem pass onto Union Bank books secretly.
Dem discover say former directors and owners add that same $300 million Afreximbank loan make over $490 million, use am acquire Union Bank shares. At the same time, dem place burden of repayment of foreign currency loan on Union Bank. Na use bank fund acquire bank own shares. No be beans.
The former owners and directors no hedge against revaluation loss for the foreign currency loan. Dem no cover interest and fees. But dem retain full ownership benefits. This unorthodox financial engineering result in revaluation loss of N396 billion and interest and fees payable of more than N147 billion by third quarter 2025.
Forensic investigators still discover say former owners and directors engage in wilful diversion of foreign loans borrowed from offshore banks. Dem illegally reroute funds borrowed for on-lending to customers into multi-million dollar swap transactions. Interesting part be say swap transactions dem do with CBN without informing regulator of primary purpose of offshore funds. At the same time, dem provide false reports to offshore lenders.
Besides, forensic report uncover multi-million dollar diversion of Union Bank depositors and lenders funds. One instance, $58 million dem withdraw to cover maturing obligations under undisclosed and unhedged $300 Afreximbank loan. Total inappropriate withdrawals amount to over $100 million. That one create foreign currency liquidity crisis for bank.
Analyst talk say CBN intervention provide first generation bank with “soft window” to manage operations while new directors redirect bank affairs. Corrective measures make Union Bank bounce back. Market share dey regain, maturing obligations dey redeem. By third quarter 2025, bank dey on path to recovery after new management actions.
Many analysts expect say dem go meet N200 billion new capital requirement to retain standalone national banking licence. CBN formal statement on judgment delivered March 25, 2026, by Federal High Court in Lagos concerning regulatory action on Union Bank, CBN talk say while dem dey obtain and carefully review Certified True Copy of judgment, Union Bank status no change. Meaning say lender remain under CBN-intervention-management.
CBN talk say “As the apex regulatory authority, the CBN remains committed to acting in accordance with its mandate and established legal processes.” Dem assure public say UBN status unchanged and say dem remain fully capable of meeting obligations to customers, depositors, and all stakeholders.
CBN go continue provide necessary regulatory oversight to ensure Union Bank operate in safe, sound, and stable manner. Dem maintain public confidence in financial system. In what appear as reference to Union Bank and other CBN-intervention banks, apex bank for formal statement confirming successful recapitalisation of 33 banks, talk say “a limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.”
Apex bank assure say “all banks remain fully operational, ensuring continued access to banking services for customers.” That one dey allay any fears over operations of intervention banks wey still face legal issues. The matter still dey court. But one thing clear: forensic report don show us wetin dey happen for inside. Na eye opener.
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